Church & Dwight Co., whose roster of consumer products includes Arm & Hammer, Nair, Orajel, and Waterpik, said net sales and net earnings for the second quarter fell, though the results beat analysts’ estimates.
The company also said it is conducting a strategic review of its portfolio. Church & Dwight said in its first-quarter earnings call that it was exiting its Flawless, Spinbrush, and Waterpik showerhead businesses by early 2026.
Net sales declined 0.3% to $1.506 billion from $1.511 billion in the previous quarter. Net income tumbled 21.6% to $191 million, or 78 cents a share, from $243.5 million, or 99 cents. On an adjusted per-share basis, the company earned 94 cents, beating the average analyst estimate by 8 cents. Adjusted earnings per share exceeded the company’s outlook of 85 cents, driven by higher-than expected-organic sales and profit margin. Quarterly sales of $1.51 billion outpaced analysts’ estimate of $1.48 billion.
Shares were trending lower on the Nasdaq Real Time market at $93.61, down 16 cents. Church & Dwight shares are off 10.6% year to date.
Rick Dierker, chief executive officer, commented, “Our brands continue to perform well in this dynamic environment. We continue to drive both dollar and volume share gains across most of our brands. Our balanced portfolio of value and premium products and our relentless focus on innovation continues to position us well for the future. Importantly, we began to see category growth levels improve sequentially through the second quarter, which provides further confidence in our full-year outlook.”Â
Dierker said in the second quarter that the company recorded pre-tax charges of about $51 million, primarily non-cash impairments of intangibles and fixed assets, as well as inventory charges. These charges were excluded from the company’s adjusted earnings.
Reported gross margin slid 410 basis points to 43.0%, mostly because of the impact of higher manufacturing costs, including tariffs, Zicam/Orajel recall expenses, and one-time charges related to the Flawless, Spinbrush, and Waterpik showerhead business exits.
Church & Dwight projects third-quarter organic sales to grow 1% to 2%, adjusted EPS to decline 9% to 72 cents, and adjusted gross margin to shrink by about 100 basis points, primarily because of the impact of inflation and tariff costs, the lower margins of the exited businesses, and increased investments in marketing.
For 2025, the company continues to forecast both organic sales and adjusted earnings per share to grow 0% to 2%.
