118.90 0.00 (0.00%)
After hours: 5:33PM EDT
|Bid||118.85 x 800|
|Ask||118.89 x 800|
|Day's range||118.79 - 120.26|
|52-week range||78.49 - 121.76|
|Beta (3Y monthly)||0.37|
|PE ratio (TTM)||83.15|
|Earnings date||17 Oct. 2019 - 21 Oct. 2019|
|Forward dividend & yield||2.98 (2.48%)|
|1y target est||123.73|
Trian Partners, the shareholder activist fund run by Nelson Peltz, has staged a comeback in the first seven months of the year after a punishing end to 2018 left the fund with its worst annual loss in a decade. The $9bn hedge fund posted gains of about 18 per cent through to the end of July, according to a person familiar with the firm, as global equity markets bounced on expectations of looser monetary policy. It is also among one of the largest hedge fund shareholders in General Electric, the beleaguered industrial conglomerate.
The consumer packaged-goods company raised prices on trash bags and charcoal last year. Others didn't follow suit and it hurt the bottom line.
Procter & Gamble (PG) is benefiting from ongoing initiatives to improve productivity. Also, the company is focused on product improvement, packaging and marketing initiatives and cost-saving plans.
Church & Dwight's (CHD) sales are gaining from continued category growth and healthy market share gains. The company's consumer international business has long been contributing to the top line.
(Bloomberg Opinion) -- It was hard to imagine things getting worse for Kraft Heinz Co. than they did back in February, when the company dropped a cavalcade of bad news: It took a massive writedown, slashed its dividend and revealed an SEC subpoena related to an accounting investigation, all on top of reporting that profitability in the quarter had fallen short of expectations.That moment felt like it had to be rock bottom for a company that had been trying to cost-cut its way to earnings growth, per the typical playbook of one of its biggest shareholders, private equity firm 3G Capital. But Kraft Heinz’s latest results, released Thursday morning, made it clear the worst isn’t over. Kraft Heinz said organic sales fell 1.5% from a year earlier for the six months ended June 29, reflecting declines on this measure (which excludes the effects of currency fluctuations and M&A) in the U.S., its largest market. Cost inflation in everything from packaging to logistics, as well as promotional expenses, weighed on profit. Operating income declined 54.6% from a year earlier to $1.3 billion. Even more worrisome, the company also said it was pulling its full-year earnings and sales guidance, a move that suggests a real uncertainty about the company’s path to growth. That rightly spooked investors, who sent Kraft Heinz shares to all-time lows in morning trading. It all made for a not-so-warm welcome from Wall Street for new CEO Miguel Patricio, who was appointed in April, started in the role in July, and appeared on the company’s investor conference call for the first time Thursday. But he also didn’t help himself as much as he could have during the call, because he didn’t offer a particularly clear and specific vision for a turnaround. When an analyst asked about potentially selling off weak brands, he said that question “is not on the table” right now. I can see how that wasn’t a reassuring answer for investors, who see obvious benefits in unloading troubled assets.When asked about how he was going to improve top-line growth and boost sales, Patricio mentioned Hispanic consumers as an example of a demographic group Kraft Heinz wasn’t doing a great job of courting. He also spoke about a need to revamp its marketing. But again, this was broad-brush strokes, not details.I realize a fully formed comeback plan may be a tall order for an executive who has only been in the job 40 days. But when the turnaround effort at hand is going to be as heavy a lift as this one, I understand why investors weren’t comforted by a general outline.That said, there were a few positives in some of Patricio’s Thursday remarks. In particular, I was heartened by his answer when an analyst asked him about how his previous experience as an executive at beer giant Anheuser-Busch InBev (another 3G holding) would shape his approach at Kraft Heinz.He mentioned AB InBev’s success at using “premiumization” – or making more upscale products that would appeal to craft beer devotees – to increase sales. He noted that in the packaged food industry, premiumization has largely been driven by upstarts. He’s right about that, and I agree it’s a major opportunity for Kraft Heinz. I wrote just last week about how Procter & Gamble Co., another consumer-goods giant, has returned to health in part by focusing on more high-end products that warrant higher price tags. I think Kraft Heinz could reap similar benefits if it pursued a similar approach.After Thursday’s results, Patricio’s turnaround task looks as hard as ever, and there is no time to waste. He said shareholders would see the results of a full strategic review by early next year. Too bad a bunch of investors decided not to stick around and wait for it.To contact the author of this story: Sarah Halzack at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
On Thursday, Clorox posted mixed fourth-quarter results. Clorox reported net revenues of $1.63 billion, which fell short of analysts’ estimate.
(Bloomberg Opinion) -- Shares of Procter & Gamble Co. reached an all-time high this week after the company released a blockbuster quarterly earnings report. Organic sales – a measure that strips out currency movements and other factors – were the highest in more than a decade, with each of its major divisions posting at least mid-single digit growth from a year earlier on this measure. An upbeat sales and earnings forecast for 2020 capped off the win.It’s a remarkable change in momentum for a consumer-goods behemoth that only a year ago was licking its wounds after a bruising proxy fight and was desperate to show it could do better amid tough competition from insurgent and private brands.So how did P&G do it? Many factors, including a new organizational structure and revamped marketing strategy, are playing a role. Importantly, though, it’s also done a good job of figuring out how to get shoppers to pay more for its products. It’s here that I want to focus, as there are some lessons in what P&G has done for another corner of the consumer world – the apparel industry – which badly needs to do the same thing.One way P&G has gotten consumers to splurge is through product innovation. Pampers Pure – a version of its familiar diaper that is made with plant-based and sustainable materials – has helped lift sales recently in its baby division. This product, new to the market in 2018, capitalizes on consumers’ growing preference for eco-friendly products while also giving the company a reason to charge a premium price. This year, it followed up with Pure products in its Always and Tampax brands.Higher-priced items have also been driving strong growth in its laundry division. Tide Pods and Gain Flings carry a 50% price premium compared to liquid detergent, and yet shoppers scoop them up because the format offers obvious convenience.Here’s why I think the apparel industry should pay attention to this dynamic, even though selling consumer staples is a somewhat different beast. Chains such as Gap Inc., Ann Taylor and Macy’s Inc., have become over-reliant on discounts, which can cheapen their image and hurt margins. Lately, their approaches seem to largely center on using technology to present more personalized deals, or to introduce fresh loyalty programs as a way to offer value. And it hasn’t done much to return them to relevance.What if, instead, they focused on product innovation, like P&G does, to get people to pay full price? In apparel, there are at least a couple of ways to do this.One is working to develop garments with clear functionality or performance advantages, such as a white t-shirt that isn’t see-through or pants that don’t shrink in the wash. This, in fact, is how Lululemon Athletica Inc. has become a rare bright spot in the clothing business. Women are willing to pay $98 for its leggings because its distinct fabrics and designs result in a comfort and durability that shoppers deem worth the price tag. No wonder the athletic apparel retailer has booming sales and practically never discounts.Product innovation could also mean fashion newness – creating pieces that people simply feel like they have to have. As Andrea Felsted and I noted in a recent column, Inditex SA’s Zara does it all the time. J. Crew Group, for all its current woes, managed to win with fashion innovation during the apex of the Mickey Drexler-Jenna Lyons era, when its sequins-as-daywear and oversize necklaces became a go-to look every chain was forced to imitate.It isn’t just product innovation, though, that has allowed P&G to win with pricing; it has also raised prices on existing items under banners such as Bounty, Charmin and Puffs as it has sought to offset elevated commodity costs. In some ways, this is a risky move, as private-label brands are there as a cheaper alternative.Here’s the thing, though: P&G is fond of saying “performance drives brand choice.” In other words, executives trust that, for all but the most budget-conscious shoppers, people are going to be loyal to the product they think works best.Clothing sellers should consider embracing this philosophy. Mid-priced apparel chains appear to be battle-scarred by two factors: the recession that ended a decade ago, and the concurrent competitive incursions from value-oriented players such as H&M operator Hennes & Mauritz AB and TJX Cos., owner of the T.J. Maxx chain. That confluence of events seemed to spook them into believing that the only thing that would ever get shoppers to open their wallets is discounts.I don’t think that’s true. In today’s upbeat economy, I am confident plenty of once-devoted Banana Republic, Loft or Express Inc. shoppers would pony up for work attire they perceived to be durable, or for a date-night dress they thought was a knockout. The mental calculus wouldn’t be so different from why that same woman springs for Charmin even when the generic toilet paper is right next to it on the shelf: It performs better, so it’s worth the cost.Mall-based clothing chains are in a rut. It’s high time for some more creative thinking – and perhaps some unusual inspiration – if they’re going to dig out of it.To contact the author of this story: Sarah Halzack at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.