P&G to increase prices in part due to tariffs

NEW YORK — Consumer products giant Procter & Gamble offered an annual earnings outlook that was below analysts' projections and said it would raise prices on about a quarter of its products in the U.S. in part due to higher costs from President Donald Trump's tariffs. The assessment delivered Tuesday comes a day after the Cincinnati-based maker of such products as Crest toothpaste, Tide detergent and Charmin toilet paper, named Shailesh Jejurikar, currently chief operating officer, to succeed Jon Moeller as the company president and CEO, effective Jan. 1, 2026. Moeller, who has been at the company's helm since November 2021, will become P&G's executive chairman. The price increases, which will be implemented starting next month, will be in the mid-single digit percentages and will also be combined with improved features in the products, P&G's Chief Financial Officer Andre Schulten told reporters on a call on Tuesday after the release of its fiscal fourth-quarter results. In April P&G said it was doing whatever it could to reduce higher costs from Trump's expansive tariffs, from shifting sourcing to changing formulation to avoid duties. Back then, Schulten told reporters on a call that the consumer products giant still would likely have to pass on higher prices to shoppers as early as July. P&G on Tuesday estimated that tariffs will increase its costs by about $1 billion before tax for fiscal 2026. The price increases come as P&G said its consumers have become more cautious, digging deeper into their pantry inventory before going on a shopping trip, focusing on larger pack sizes at clubs and focusing on deals. "The consumer clearly is more selective in terms of shopping behavior in our categories, and we see a desire to find value," Schulten told reporters Tuesday. But Schulten believes that when price increases are combined with improved features on products they resonate with customers. He declined to give specifics but noted that with its baby care brand Luvs, the company boosted prices while making some improvements a few months ago, and it was able to increase market share. P&G reported net income of $3.62 billion, or $1.48 per share, for the quarter ended June 30. That compares with $3.14 billion, or $1.27 per share, in the year-ago period. Analysts were expecting $1.42 per share, according to FactSet analysts. Sales rose to $20.89 billion, in line with what analysts predicted. That was up from $20.53 billion in the year-ago quarter. For the current year, P&G expects earnings per share in the range of $6.83 to $7.09. That was below the $7.23 per share that analysts predicted. The company expects annual sales to be up anywhere from 1% to 5% for the year.