The dominance of Procter & Gamble’s grooming business has been thrown into question in recent years due to the influx of direct-to-consumer shaving brands — but the business is showing signs of a rebound.
For the quarter ended Sept. 30, the grooming segment posted a 5 percent net sales gain to $1.6 billion. Appliance sales were up more than 30 percent “due to innovation, increased demand for dry shaving and styling products and increased pricing,” P&G said in a statement.
Jon Moeller, P&G’s chief financial officer, said the uptick was driven by appliances and “serving men and women in a more holistic way” — meaning providing products for people who want to shave, as well as those who do not, with products like hair trimmers and beard wax and conditioner. Moeller called out Gillette Skin Guard, which is meant for men with sensitive skin as one example, and King C. Gillette, a line meant for men who maintain facial hair, as another.
“We like this business. It is growing, it’s very profitable, highly cash-generative and something we’ll be investing behind,” Moeller said on the company’s Tuesday earnings call.
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Overall, P&G’s sales gained 9 percent in the quarter, to $19.3 billion, with a net earnings increase of 19 percent to $4.3 billion. All segments posted gains.
Beauty saw a 7 percent year-over-year lift to almost $3.8 billion, with sales driven by skin care and “personal cleansing,” the company said. In North America, sales were propelled by the launch of Safeguard hand soap and innovations at Olay. Personal cleansing was up 30 percent with double-digit growth in every region. Hair product sales also increased due to demand in North America, China and Latin America.
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