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Colgate Revenue Climbs on Global Sales, US Lags
1 May
Summary
- International growth offset a 1.8% decline in North American sales.
- Net sales rose 8.4% to $5.32 billion, surpassing expectations.
- Full-year guidance maintained, but gross profit margin outlook lowered.
Colgate-Palmolive reported higher first-quarter revenue, driven by strong international performance that counteracted a decline in North American sales. Net sales increased by 8.4% to $5.32 billion, exceeding Wall Street's expectations.
While international divisions showed growth, U.S. sales experienced a 1.8% decrease, mirroring a broader trend of weak consumer sentiment. This sentiment, which has caused shoppers to delay purchases, recently reached its lowest recorded level in a University of Michigan survey.
The company reaffirmed its full-year sales guidance of 2% to 6% growth. However, it adjusted its outlook for gross profit margin, now expecting it to be lower than previously forecast.
