CHD

The Clorox Company CLX enters fiscal 2027 with GOJO Industries as a major new growth contributor. The acquisition, completed in April 2026 and now operating as Clorox Purell, expands the company's health and hygiene platform and is expected to add materially to reported sales.That growth comes with a near-term trade-off. GOJO should support earnings, but acquisition-related costs and a different business mix arrive as Clorox already faces elevated inflation, negative mix and pressure on gross margin. Clorox expects fiscal 2027 net sales to increase 13-14%, with GOJO contributing about 9.5 percentage points. The combined global health and hygiene portfolio now represents more than half of net sales, giving the acquisition a meaningful role in the company's growth profile. Image Source: Zacks Investment Research The first quarter will make GOJO's impact especially visible. Clorox expects net sales to rise 31-32%, including about 15 points from the acquisition. Organic sales are projected to increase 16-17%, but the comparison with last year's enterprise resource planning inventory drawdown adds about 18 points. Excluding that effect, underlying organic sales are expected to decline. GOJO is expected to be accretive to adjusted earnings in fiscal 2027. Management said integration progress has been encouraging, the groundwork for synergies is underway and financial benefits are expected to begin materializing in the fiscal fourth quarter.For the full year, adjusted earnings are projected at $5.70-$6.00 per share, up 3-8%. Reported earnings are expected at $5.41-$5.71 per share, including about 29 cents of GOJO transaction-related costs. The setup means GOJO can help earnings, even while integration expenses remain part of the near-term picture. The Clorox Company price-consensus-chart | The Clorox Company Quote Clorox expects fiscal 2027 gross margin of about 42%, including roughly 20 basis points of pressure mainly from GOJO inventory step-up costs. The first-quarter margin is expected near 40%, with about 50 basis points of acquisition-related inventory step-up pressure. Higher-than-normal inflation and negative mix are expected to more than offset cost savings.Selling and administrative expenses are projected at about 16% of sales, including around 40 basis points of GOJO transaction-related costs. Clorox also expects inflation to exceed $200 million in fiscal 2027, more than double its historical $75-$100 million range.The broader staples backdrop shows why margin execution matters. The Procter & Gamble Company PG expects fiscal 2027 organic sales growth of 1-3% while absorbing about $1 billion after tax from higher raw material, energy and transportation costs. Church & Dwight Co., Inc. CHD, by contrast, raised its 2026 organic sales outlook to 4-5% and expects adjusted gross margin expansion of 100-120 basis points. GOJO gives Clorox a clear reported-sales catalyst and a path to longer-term revenue synergies. Yet the quality of fiscal 2027 growth will depend on how much improvement comes from the underlying business once acquisition and enterprise resource planning comparison benefits are separated out.Near-term Zacks signals remain cautious. The Zacks Consensus Estimate for fiscal 2027 earnings is $5.82 per share and has declined 3.8% in the past four weeks. CLX currently carries a Zacks Rank #4 (Sell), with a Value Score of C, Growth Score of D, Momentum Score of F and VGM Score of D. The rank reflects unfavorable earnings estimate revision trends, while the weaker Growth, Momentum and VGM Scores suggest limited support from those investment styles despite a middle-of-the-range Value Score. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Clorox Company (CLX) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Church & Dwight stock has delivered a 26.4% total return over the past five years, yet current checks send mixed signals on what investors are paying for that performance, with the Discounted Cash Flow (DCF) intrinsic value estimate pointing to upside while earnings based multiples suggest the shares are on the expensive side. Over five years, a 26.4% total return suggests Church & Dwight has rewarded patient shareholders, even if the most recent weekly move has been softer. Recent news highlighting solid organic sales momentum and brand strength can support expectations for future cash flows. However, any slowdown in consumer demand or pressure on margins may weigh on how much investors are willing to pay for that growth. The stock only passes 2 of 6 valuation checks. This points to a low overall value score and a company that does not screen as a clear bargain on broad metrics, even though the DCF suggests it may be undervalued by about 23.9% while traditional multiples lean toward overvaluation. The issue now is whether Church & Dwight's current price is closer to the intrinsic value suggested by the DCF estimate or to the richer picture implied by market multiples. Church & Dwight delivered 9.5% returns over the last year. See how this stacks up to the rest of the Household Products industry. The Discounted Cash Flow (DCF) method estimates what Church & Dwight is worth based on the cash it can generate for shareholders. The model uses the latest twelve month free cash flow of about $1.1b and assumes cash flows continue to grow rather than shrink over time. On that basis, the DCF points to an estimated intrinsic value of about $132.96 per share. Compared with the current share price, that intrinsic estimate implies the stock trades at roughly a 23.9% discount and therefore screens as undervalued on this cash flow view. Recent news around stronger organic sales and higher guidance for sales growth and operating cash flow is one explanation for why the DCF supports a richer value for Church & Dwight than earnings multiples alone might suggest. On the DCF model, Church & Dwight stock appears undervalued relative to the cash flows analysts expect it to produce. Our Discounted Cash Flow (DCF) analysis suggests Church & Dwight is undervalued by 23.9%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Church & Dwight. The P/E ratio is a useful way to see what you are paying for each dollar of Church & Dwight earnings. On this measure, the stock trades on about 32.2x earnings, which is well above the Household Products industry average of around 17.9x and also above the peer group average of roughly 23.9x. The fair P/E multiple for Church & Dwight, based on its size, margins, growth profile and risk, is estimated at about 20.1x. That is a meaningful gap to the current 32.2x P/E, which indicates investors are paying a premium versus what this framework suggests as a reasonable level. Even with recent updates around organic sales and guidance, the market multiple reflects a stock that already carries a rich earnings valuation. On the P/E multiple, Church & Dwight stock appears overvalued compared with both tailored fair value estimates and typical industry pricing. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives helps you connect Church & Dwight's valuation puzzle to the specific future paths that could make the stock worth materially more or less than today's price, and it sits on the company’s Community page. Instead of stopping at a single ratio or model output, these narratives spell out the growth, margin and earnings assumptions behind those figures so you can monitor whether that underlying story is actually playing out. Community views on Church & Dwight sit far apart, with one side seeing the stock as roughly fairly priced and the other arguing expectations have run ahead of execution risk. Bull case: roughly fairly valued Read the full Bull Case to see why Church & Dwight could be undervalued Bear case: 21% overvalued Read the full Bear Case to see why Church & Dwight could be overvalued Do you think there's more to the story for Church & Dwight? Head over to our Community to see what others are saying! Church & Dwight sits in a genuine valuation tug of war. The Discounted Cash Flow (DCF) intrinsic value estimate points to meaningful upside, while the market multiple view, especially the current P/E, frames the stock as overvalued compared with peers and tailored fair value. Broader checks remain weak, so that single DCF signal does not cleanly offset the richer earnings pricing. The real swing factor from here is whether Church & Dwight can sustain the cash flow and margin profile implied in the intrinsic value model without the multiple compressing back toward more typical industry levels. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CHD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Church & Dwight delivered a positive second quarter, with management highlighting broad-based organic sales growth across its divisions and strong consumer demand for key brands like ARM & HAMMER, THERABREATH, and HERO. CEO Richard Dierker credited the company’s “relentless focus on innovation” and effective execution amid a dynamic environment, pointing to volume gains and successful new product launches as central to the quarter’s outperformance. The acquisition of MISS MOUTH’s stain remover also contributed to results, with early sales momentum exceeding initial expectations. Is now the time to buy CHD? Find out in our full research report (it’s free). Revenue: $1.53 billion vs analyst estimates of $1.50 billion (1.6% year-on-year growth, 1.8% beat) Adjusted EPS: $0.89 vs analyst estimates of $0.90 (in line) Adjusted EPS guidance for Q3 CY2026 is $0.89 at the midpoint, below analyst estimates of $0.94 Operating Margin: 18.1%, in line with the same quarter last year Organic Revenue rose 5.8% year on year (beat) Market Capitalization: $24.52 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Rupesh Parikh (Oppenheimer) asked which areas drove the significant organic sales upside. CEO Richard Dierker and CFO Lee McChesney pointed to broad-based growth, with notable contributions from THERABREATH, ARM & HAMMER cat litter, and international performance. Anna Lizzul (Bank of America) inquired about ARM & HAMMER’s share gains and the impact of increased promotional activity. Dierker explained the brand’s value positioning allowed it to maintain share despite competitors’ heightened promotions. Christopher Carey (Wells Fargo Securities) questioned whether the THERABREATH toothpaste launch exceeded internal expectations and if it contributed meaningfully to the quarter. Dierker confirmed the launch outperformed early targets and helped drive personal care growth. Bonnie Herzog (Goldman Sachs) asked about the decision to reinvest increased earnings into marketing and innovation rather than expanding the EPS outlook. Dierker stated the company aims to prioritize long-term share growth over short-term profit maximization. Stephen Robert Powers (Deutsche Bank) probed the company’s evolving approach to international M&A. Dierker detailed a shift to empower local management teams in deal sourcing and integration, resulting in increased deal flow and optimism about future acquisitions. In the coming quarters, the StockStory team will be closely monitoring (1) the pace of distribution and household penetration gains for newly acquired and recently launched brands; (2) the company’s ability to hold or expand margins while navigating ongoing inflation and competitive promotional activity; and (3) continued momentum in international markets, especially as integration of recent acquisitions accelerates. Execution on reinvestment plans and productivity initiatives will be critical for sustaining growth. Church & Dwight currently trades at $103.39, up from $97.68 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Friday, July 31, 2026 at 10:00 a.m. ET President and Chief Executive Officer - Richard Dierker Chief Financial Officer - Lee McChesney Operator: Hello, everyone. Thank you for joining us, and welcome to the Church & Dwight's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Mr. Rick Dierker, President and Chief Executive Officer of Church & Dwight. Please go ahead, sir. Richard Dierker: Thank you. Good morning, everyone. Thanks for joining the call. We had a strong second quarter and first half. And I want to start by thanking all of our Church & Dwight employees all around the world for executing so well in a challenging environment. I'll begin with some thoughts on the broader environment and then a review of our Q2 results, and then I'll turn the call over to Lee McChesney, our CFO. And when Lee is done, we'll open it up for questions. Starting with the broader environment. Conditions remain dynamic. However, our categories are growing ahead of our original expectations, and Church & Dwight is growing even faster. Consumer spending remains resilient. Our teams are executing with excellence, and we remain focused on offering high-quality solution-oriented products to consumers at the right value. Our brands continue to perform exceptionally well, driving a second straight quarter of industry-leading organic sales growth. Turning to the quarter. Net sales increased 1.6%, which was ahead of our outlook and organic sales grew 5.8%, almost 6%, well above our 3% outlook. This growth was broad-based across all 3 divisions and was primarily driven by volume growth of 4.3% and positive price/mix of 1.5%. Adjusted gross margin was 45.4%, up 40 basis points, and adjusted EPS was $0.89, above our $0.88 outlook. Overall, this is a great result. And with the first half of the year behind us, it gives us great confidence to raise our sales, EPS and cash flow outlook for the full year. In Q2, we also completed the acquisition of the fast-growing MISS MOUTH's brand, the #1 stain remover brand on Amazon. We're encouraged by the strong initial sales results from the brand since the June acquisition. And I'm especially excited about the growth opportunities for MISS MOUTH's over the next 12 to 18 months. In the second quarter, MISS MOUTH's consumption grew over 50% and gained almost 3.5 share points. And we think this is just the beginning as household penetration for the brand is currently just 2.5% compared to the category, which is 50%. Additionally, ACV for MISS MOUTH's is only 35% compared to 80% for the category, which again indicates plenty of room to run on distribution. Innovation and distribution gains remain a significant competitive advantage for Church & Dwight. They were a major contributor to our industry-leading growth. We're confident that our relentless focus on innovation will continue to drive strong growth, distribution gains at shelf and market share expansion. New product launches this year are expected to account for about half of our organic growth as we innovate in key categories across the portfolio. Consumption across our largest categories grew at 2.7% in the second quarter, which exceeded our category growth expectations of around 2%. Now I'm going to turn my comments to each of the 3 divisions. First up is the U.S. business. Domestic organic sales increased 5.1% with sustained growth in both of our household and personal care portfolios. Growth was driven by volume and favorable price/mix with strong performance from THERABREATH, mouthwash and toothpaste, HERO, ARM & HAMMER cat litter and ZICAM. The ARM & HAMMER brand had another quarter of growth with laundry maintaining record shares across total laundry. ARM & HAMMER laundry detergent consumption and category consumption grew about 1% in the quarter despite a step-up in competitor promotions and a lower level for ARM & HAMMER. The value segment of laundry continues to grow. Next up is litter, continued fantastic results as ARM & HAMMER cat litter consumption grew a robust 7.5% and share increased 0.8 points to reach 24.5%. While category promotional levels declined slightly, they remain at historically high levels. ARM & HAMMER cat litter launched DUAL DEFENSE with Microban Clumping Litter earlier this year, and that launch continues to do very well. HERO and THERABREATH continue to contribute considerably to overall performance. THERABREATH achieved another quarter of record share gains, jumping 4.5 points to 25.3% share and further solidified our #2 position in total mouthwash. Even with that growth, household penetration remains relatively low at only 14% compared to the mouthwash category of 65%. Our THERABREATH toothpaste launch continues to perform well, and it's still early in the launch. It's off to a great start with a 1 point share in total toothpaste despite only just fully entering brick-and-mortar in the last several months. HERO consumption outpaced the patch category. And with the cleanser launch just starting now, we're confident in HERO continuing to gain share in total acne. Facial cleansers represent a $650 million category and accounts for approximately 30% of the total acne category, lots of runway as HERO has, again, relatively low household penetration at 10% compared to the category of 30%, which gives us confidence in the continued growth of this brand. For TOUCHLAND, sales grew in the second quarter and with back half weighted innovation, new collaborations and activations, we expect continued sales growth in the second half of the year. Looking forward further, our international expansion, our innovation in new categories and future distribution opportunities continue to give us confidence in this brand as we look to 2027. Global e-comm was once again a strong contributor. Global e-commerce grew 22.7% in the second quarter and global online sales now represent 25.5% of total consumer. Turning to international. Q2 was another great success with our international business delivering organic sales growth of 9.1%, driven by higher volume and favorable price/mix. Our great international brands are leading to share gains and growth that outpaced local countries GDP. In addition, our recent U.S. acquisitions are paying dividends across the world in a big way, where brands like HERO and THERABREATH are driving outsized growth. Our ability to scale brands to so many countries so quickly is getting better and better. Overall, our international team is executing very well. Our Specialty Products division also performed well. Organic sales growth of 2.8% due to a combination of higher volume and higher price and product mix. I'll close by saying that we were very pleased with a great first half. The benefits of our strategic actions in 2025 are enabling greater focus on our growth initiatives. I am especially pleased with the time the entire organization is spending focused here on the future. Momentum is building. The category work surrounding ARM & HAMMER, our acceleration plans for oral care behind THERABREATH and the pipeline for M&A within the international business are just a few examples. I'll provide a detailed update in early 2027, but I'll say more -- but I will say, I'm more optimistic about the future than I've ever been. I'm also very proud of our Church & Dwight team as we continue to execute well in a volatile environment. And with that, I'll turn the call over to Lee for more detail on the quarter. Lee McChesney: Thank you, Rick, and good day, everyone. We appreciate you joining the call. As we now enter the second half of the year, we are encouraged with the results fueled by innovation and share growth, which provides us the momentum to deliver strong Church & Dwight Evergreen model results. The second quarter demonstrates the strength of our portfolio of categories, our leading levels of innovation and the execution capabilities of our teams around the globe. Similar to Rick, I also want to recognize our teams across the globe for their focus and execution this past quarter, very well done. Let's get into the details. We'll start with EPS. Second quarter adjusted EPS was $0.89, exceeding our outlook of $0.88. Stronger-than-expected sales and continued gross margin improvement fueled our results and enabled increased investments in our brands. Organic sales in the second quarter grew 5.8%, well above our outlook of approximately 3%. And growth was broad-based across the business and primarily volume-driven with volume growth of 4.3% and positive pricing and mix of 1.5%. Our power brands once again gained share, fueled by well-received innovation and our robust distribution wins with our commercial partners. Strong organic growth and the contributions from our acquisitions more than offset the impact of our 2025 business exits and led to reported net sales growth of a positive 1.6% in the quarter, ahead of our expectations. Let's now turn to gross margin. Our second quarter adjusted gross margin was 45.4%, an increase of 40 basis points versus last year. Our results were driven by 150 basis points from productivity programs, 110 basis points from our higher-margin acquisitions, combined with the impact of our successful portfolio actions and 180 basis points from the combination of volume, price and mix. These factors offset the headwinds from inflation, tariffs and transportation of 400 basis points. We continue to invest in our brands in the second quarter as marketing expense was $165 million, up $8.2 million or 40 basis points versus last year. And similar to our strategy in past quarters, when our sales and gross margin results exceed our original expectations, we will utilize those opportunities to invest in our brands. Adjusted SG&A was $241.4 million or 15.8% of net sales, a 220 basis point increase versus the prior year. As we've noted in our 2026 outlook, SG&A in the first half of the year is primarily growing to the inclusion of TOUCHLAND's SG&A and amortization expense. Adjusted other expense increased by $9.2 million due to the lower interest income compared to last year. Let's now turn to cash flow. Cash flow remains a significant strength of the company. And for the first 6 months of 2026, cash from operations was $462 million, an increase of 10.8% versus the prior year as we delivered improved cash earnings and executed disciplined working capital results. Capital expenditures were $61.8 million in the first half, and we continue to expect full year capital expenditures of approximately $130 million or roughly 2% of sales. Let's now turn our outlook to the outlook for 2026. And as detailed in our press release this morning, we are increasing our sales, earnings per share and cash flow outlook despite the challenging macro environment. This improvement reflects the strength of our operating fundamentals, which is led by volume-based organic growth, steady market share gains and management's focus on gross margin expansion. Our outlook continues to reflect the impact of transitory cost pressures that developed over the past 100 days. Our latest outlook of approximately $30 million reflects raw materials, transportation costs and various premiums resulting from the conflict in the Middle East. And this outlook assumes a crude oil price of approximately $90 a barrel. Our teams have acted to fully mitigate this headwind this year through increased productivity. And separately, on a positive note, we expect to receive approximately $15 million of Phase 2 tariff refund benefits during the second half of 2026. We will invest these proceeds in primarily costumer -- consumer-facing business activities. We are raising our full year organic sales outlook to approximately 4% to 5%, up from the prior outlook of 3% to 4%. The improved outlook reflects the strong first half execution and the continued momentum across the portfolio during the second half of 2026. And we now expect to adjust gross margin expansion of approximately 100 to 120 basis points for the year. And marketing investments is now expected to be at or above 11% of sales as we invest behind our brands and continue supporting our growth initiatives. We are raising our adjusted EPS outlook to a growth rate of 6% to 8% versus our prior expectation of 5% to 8%. And we also now expect cash from operations of approximately $1.175 billion, up from $1.15 billion. And turning to the third quarter, we expect organic growth -- sales growth of approximately 3% and adjusted EPS of approximately $0.89 per share, representing approximately 10% growth versus the prior year, while we also invested approximately 12% rate of marketing as a percentage of sales. So to conclude, we are very pleased with our first half performance and are confident in our ability to deliver our improved outlook for the balance of 2026. Our portfolio remains strong. Our brands continue to gain share, and our teams are executing well in a dynamic environment. Operator, we are now ready for questions. Operator: [Operator Instructions] Your first question from the line of Rupesh Parikh with Oppenheimer. Rupesh Parikh: Also congrats on a nice quarter. So just going back to the organic sales growth delivery for the quarter. Just curious, at a high level, what are some of the areas that drove the significant upside that we saw on that line item? Richard Dierker: Yes. Thanks, Rupesh. The good news is it was pretty broad-based. But as we said in the release, I think THERABREATH, cat litter, I would say ARM & HAMMER laundry was kind of flattish. Anything else you would add, Lee? Lee McChesney: Sure. I think as Rick said, it's pretty broad-based, home care, personal care across the globe, really good to see international at 9% as well, and that was pretty broad-based across both Europe and Asia and Latin America as well. Rupesh Parikh: Okay. Great. And then my follow-up question, just on the MISS MOUTH's acquisition. It sounds like very strong consumption that you guys are seeing right now. But as we look out the next couple of years, is -- I know you guys talked about this business growing double digits, but is there any more granularity you can give in terms of the types of growth rates you expect for the business? Richard Dierker: Yes. I think it's a little early to do that. I mean we just bought it in June, early June. I would say a lot of work is going on to integrate and then accelerate this business. And I don't think we've been more excited about an acquisition in a long time. There's 5 individuals that came over. They've talked right into our fabric care business. We know fabric care really, really well. And retailers, our internal sales force are clamoring for this brand. And so it's already at a 13% share at a major retailer, and it's only been there for a few months as one example. But I'd just go back to household penetration is [ 3 ], it's 50% for the category, probably the right time to talk about our North Star on growth ambitions is probably early 2027, but we think there's a lot of enthusiasm around this map. Operator: Your next question comes from the line of Anna Lizzul with Bank of America. Anna Lizzul: I was wondering if you could comment on the success you're seeing across ARM & HAMMER laundry. I wanted to follow up on the fact that you mentioned in the beginning of this year where you surpassed Tide Original on wash load volumes. And where are you seeing now the share gains for ARM & HAMMER across the value, mid-tier and premium tiers? And then on the premium side for the brands, you touched on TOUCHLAND earlier in the call and the expansion to toothpaste with the rollout. I wanted to see how you're thinking about this specific expansion as we move forward this year. Richard Dierker: Yes. And on your second one, are you talking about THERABREATH or are you talking about TOUCHLAND? Anna Lizzul: Sorry, THERABREATH, you're right. Richard Dierker: Yes. Okay. Well, on laundry, look, laundry, in general, the good news or really the great news is despite a significant increase in promotion, I'd say we're back to historical levels of promotion in laundry. The category was up 200 basis points. Henkel was up 1,100 basis points and Proctor was up almost 200 basis points as well. Church & Dwight was down 300 basis points on promotion. And so despite that, the value segment grew, and we maintained our share. So just the world we live in these days, ARM & HAMMER is just so well positioned for growth. There's a lot of couponing that happens off of the channel as well, and our competitors are spending on couponing, of course, as well. So ARM & HAMMER to hold share in an environment like that is fantastic. We -- over time, we'll make sure that we're at historical levels of promotion as well. So a lot of optimism on ARM & HAMMER laundry, especially behind our innovations, like we have a good, better, best strategy, and I'd say each of those tiers within laundry are doing well. Even our sheets, as Tide evo launches and takes shelf space and money behind it, we're the #2 player in the sheet space. So our sheets are up 30% as well, and we're going along for the ride, which is great. So that's on ARM & HAMMER laundry. On THERABREATH, I would say, again, #2 mouthwash, lots of runway. Consumption grew 20% plus. We grew 4.5 share points to 25%. We're less than 1,000 basis points from the market leader who's LISTERINE. Our household penetration is still relatively low at 14% compared to the category at 65%. That is enabling us to go into other parts of oral care like toothpaste. Like we never deserved the space that we got for THERABREATH toothpaste. But because of the success of the mouthwash, we got some premium great shelf space. And as a result, we have a great brand with a great value proposition on fresh breath and cleaning, and it's doing extremely well, and it's already at 1 share point. So I couldn't be more optimistic about our oral care franchise behind THERABREATH. Operator: Your next question comes from the line of Chris Carey with Wells Fargo Securities. Lee McChesney: Chris, you might be on mute. Christopher Carey: Can you hear me? Richard Dierker: Yes. Christopher Carey: How about now? Richard Dierker: We can hear you. Christopher Carey: Okay. Great. Sorry about that. So I wanted to start with the oral care portfolio and specifically the THERABREATH rollout. You said that you're getting more than your fair share out of the gates. I wanted to -- I was wondering how you think you're tracking relative to the ambitions that you outlined at the Investor Day, I think it was an incremental $0.5 billion you feel like you're starting out stronger than expected? And was that shipment for that launch a bit stronger in the quarter than perhaps what you anticipated? I was surprised you didn't call it out some of the key drivers of organic sales. Is that something that we should be mindful for going forward given the quite robust personal care implied organic sales number this quarter? Then I have a follow-up. Richard Dierker: Yes. THERABREATH pace is off to a good start is what I would say. And it's meeting or slightly beating our expectations. I think there's a lot of great conversations in the works with additional retailers to get behind it, which is fantastic. Those conversations are easier when you have a THERABREATH mouthwash brand and business that's just, again, growing so fantastically well. So yes, I mean, for the quarter, THERABREATH pace was a contributor to net sales for sure. Did it overdeliver a little bit, maybe some. What was the other part of the question, Chris? Christopher Carey: I think that was about it. It's starting stronger than you expected. It's early days, and it was a bit of a contributor, a bit more than expected in Q2, if I heard all that correctly. Just interrupt me if... Richard Dierker: Yes. You really had asked in terms of the growth initiatives, like it's kind of early to talk about how it's doing first the growth initiatives. But it is laying the groundwork is what I would say, not just in oral care but all the ARM & HAMMER stuff, too. But that groundwork and the momentum that we're starting to build is fantastic. Christopher Carey: Okay. The second question is, I think this is one of the highest inflation numbers that we've seen over the past 4 years or so. How quickly did that develop for you? Was that freight and logistics inflation that happened quicker than you anticipated? And should we be expecting about that kind of number as we go through the rest of the year? Or was that Q2 more of an anomaly? And I'm also struck just by a bit stronger price mix contribution to both top line and gross margin. Is there a bit of a step change in thinking about how you're going to be covering inflation this year with pricing? Or is there a bit of a mix dynamic in that number as well? Lee McChesney: Yes. Chris, so keep in mind, when we talked about the $25 million to $30 million of kind of Middle East derived inflation, our outlook in 2Q said it was going to be higher in 2Q. There is some transportation costs that were going to happen right away and then you get time to respond to it. Our productivity issues that we kicked off accelerated to mitigate that. We definitely would be more back half. But -- so it's a combination of two things. That number should drop down because there's just some anomalies in the second quarter. And then we have essentially more productivity in the back half. So we have this outlook of 100 to 120 basis points of gross margin improvement. You can see where we are halfway through the year. That implies that gross margin will expand over 100 basis points in the back half of the year. On the price volume mix, that's a good number. Obviously, we always say never overreact to 1 quarter. The first quarter was just slightly negative. Our mindset is to drive volume growth, and we do drive positive mix. That's part of our algorithm. And then a reminder, this year, we do have the benefit of the portfolio actions that help as well, and that will be a benefit all year. Richard Dierker: Yes. And I'd probably say in the quarter, when we don't spend as much on promotion on laundry, that helps year-over-year a little bit on the price side of it, too. Operator: Your next question comes from the line of Bonnie Herzog with Goldman Sachs. Bonnie Herzog: I just had a question on your improved outlook for the year. You took up your top line growth guidance by 1 point and now expect higher gross margins. And while you did raise the lower end of your EPS growth guidance, you did -- you kept the high end of the range. So I wanted to understand the drivers of that and maybe how much further you plan to step up reinvestments to drive sustainable top line growth ahead? Also, if you could provide some examples of these investments and any changes you might be making to your strategy given the pressured macro environment would be helpful. Richard Dierker: Yes. Thanks, Bonnie. It's a good question. I would say, look back at our track record over the last 1, 3, 5, 10 years. What do we do when we feel like we're over delivering and performing well against our expectations and against the industry as we tend to spend back. Like we could, in theory, beat earnings and EPS in any 1 year, but we choose to spend more on marketing or we spend more on investments. And so we want to make sure that flywheel is going, that virtuous cycle happens, and we keep gaining share in shelf space and support the innovations that we're launching. We -- so beyond marketing, we're also going to spend -- we've also started to spend money behind AI. And there's some initiatives we have in place. We're going to pull some of those forward as an example, so that we can scale faster. One of our core competencies, and I think competitive advantages is really our speed and agility. And so we're going to go try to adopt and adapt faster than most people. Operator: Your next question comes from the line of Peter Grom with UBS. Peter Grom: So you mentioned that consumption in your largest categories, I think, grew 2.7% in the quarter, above your expectation for 2%. So obviously, a lot of moving pieces within the quarter itself. So kind of curious if you could speak to what you saw throughout the quarter and maybe more specifically the exit rate? And just kind of as you think about the back half of the year, what are you embedding in terms of category growth? Richard Dierker: Yes. I mean the short answer is we're still assuming around 2% for category growth. We continue to do better than that as you saw in the last couple of quarters. I think that's a good in general, walking around number for a while. Our monthly consumption numbers in Q2 were just -- were fantastic. June was also good with the exception of laundry as we didn't repeat some promotions in laundry. Sometimes we choose to do that. We also had a club promotion that we didn't do in the quarter as well. So I would say we did that fantastic growth without really -- with flattish impact from one of our larger businesses. So I'm just -- again, consumption is going really well. Shares are doing really well. It's broad-based to my first answer to kind of Rupesh's question early on. So there are a lot of things that are going right. So this is the right time for us as a company especially because we're not distracted with some of those businesses that we've sold, Peter, we have the time to focus on the future. And so we're laying the groundwork for those 3 growth initiatives that we've talked about again and again and again. So a lot of internal time is being spent on the future right now. Peter Grom: That makes sense. And then, Rick, you mentioned we're going to get some more color at a later date, but you did say that you were more optimistic than ever. And I guess just looking at the guidance and the 4Q implied exit rate would suggest some pretty nice momentum heading into next year. So maybe putting that all together, can you maybe just discuss why you are as optimistic as you've ever been and maybe what that means as it pertains to top and bottom line growth? Richard Dierker: Yes. I don't know if it's good to top and bottom line growth yet, but I'll tell you like we're doing all this category working ARM & HAMMER. We're getting real consumer feedback. We're getting real good buy-in from some retailers on the ideas. We're making great progress on how and why they have a reason for being and have a right to win in a certain category. It's obvious why we're happy about THERABREATH and its success. And meanwhile, internationally, that brand, along with HERO is really developing a business of tens of millions of dollars. So there's good global expansion going on. And then the third growth initiative was really international growth. And a piece of that is international M&A. And we've been talking a lot over the past few years about, hey, we have people here now. We have a process here now, but it's starting to go from theoretical to practical. And we filtered through 100 deals over the last 6 to 12 months now internationally. And so we're being as picky and as fussy as we always would be with any deal. But now we're starting to see the deal flow, which is great. So those are some examples. Operator: Your next question comes from the line of Olivia Tong with Raymond James. Olivia Tong Cheang: Regarding the competitive backdrop, you mentioned the promotional environment. Everyone is obviously talking about their various investments in affordability. I realize this isn't new to you, though, perhaps there are more tools out there now, whether it's leveraging retail relationships, AI and other tools. So to the extent that your competitors continue to invest in some of the affordability initiatives that they're pushing, can you provide a little bit more in terms of how you think about combating those, particularly if they start to continue to increase? Richard Dierker: Yes, I think it's a fair question, Olivia. I would just tell you, though, like look at our track record over the last not 1 or 5, but decade or 2 of how we compete in household, right? And we have a great ability to do that. And sometimes it's trade promotion. Hopefully, usually, it's innovation, hitting the right price pack architecture and sizing. You want to deliver -- like I said in my remarks, a great high quality at a value price for the consumer. And it just so happens that our brands are at the intersection of that naturally. And so they have to -- competitors have to compete a lot harder than we do because we naturally fall in those intersections. Olivia Tong Cheang: Got it. And then on MISS MOUTH's, sort of similar to HERO, THERABREATH, TOUCHLAND, I know it's early days, but what do you think MISS MOUTH's can bring to you in terms of discussions with new retailers, new categories, geographic opportunities as you sort of assess the ability to grow that business beyond where it sits right now? Richard Dierker: Yes, it has the ability to do all of that. When really you have a brand that's driving category growth, it's driving usage occasions, it's driving new consumers and young consumers of that into the category. It has a magic moment. It's actually not even the same consumer as OXICLEAN. OXICLEAN is a little bit more broader based, but MISS MOUTH's is really higher end and just a great see something, do something in terms of the stain. It is -- I don't want to get into too much detail. I would just say it is additive for every retail conversation that we have, and we're working hard to not just do current capacity, but also what the future of that brand and where it has the right -- where consumers say it has the right to go because it's going to continue to broaden on forms and maybe even adjacencies. Operator: Your next question comes from the line of Steve Powers with Deutsche Bank. Stephen Robert Powers: To start, I think year-to-date, Rick, the consumption that you put -- I mean, the results you put up around to 5% volumetric shipments, both for the total company and I think even in the consumer domestic business. I guess how does that compare to your views on consumption year-to-date? And how does that inform your back half thinking? And I guess juxtaposed against that, it sounds like you made some choices this quarter that benefited the price/mix line that seem kind of unique to the quarter. So I just -- I guess, as I think forward, do we see sort of a return to more of a full promotional stance in the back half as well? Richard Dierker: Yes. I would say consumption and our organic, there is no real disconnect. It's around 5% or so on both. So there's great momentum that we experienced in the first half. In the second half, we expect a lot of that to continue. I think even like -- I think we pulled the data on a 2-year stack as an example. And the 2-year stack for organic growth is 5% in the first half and 6% in the second half. So again, just really broad-based more than just one thing going on as a tailwind for the company. And you're right, I kind of referenced a little bit maybe a bit of a pullback in promotion that we had. I wouldn't even say a pullback. I'd say we were at a certain level and there was an acceleration by other competitors. So I don't know about a year -- much year-over-year change from a price mix perspective, but a little bit from help from laundry. But there are other things happening in the portfolio. As we have these higher-margin products like a THERABREATH or like a HERO or even like a MISS MOUTH's, as they continue to grow, that's going to be a favorable flow on mix. Lee, anything you would add to that? Lee McChesney: Yes. I mean I think Rick said it well. I mean we focus on volume growth. If you look at our history on price/mix, it's neutral to positive. It's just a little bit slightly higher in the second quarter. Some of that's a little bit year-over-year. As we look forward, that's going to be the equation. It's going to be volume driven. And we'll benefit from the things Rick talked about, the way we're positioned. we will do what we do on discounting, but we don't have to do as much as the others do. Stephen Robert Powers: Perfect. Perfect. And then, Rick, I was hoping you could talk a little bit more about international M&A. As you said, you've been talking about it for a while. It seems from your -- from the way you're talking about it now, the excitement is building, anticipation is building. But I guess as you -- have you learned anything in terms of -- I mean, the opportunity has been there on paper for a long time, but it's also -- it's taken a little while to manifest in a transaction. Is it -- have you learned anything in terms of where it's harder just or not? Just any perspective on kind of the opportunities you see it today versus when you set out to focus on this initiative? Richard Dierker: Yes. I think we are busting our pick on it for a little while, and it was all about people and structure. It wasn't a bad approach, but we -- initially, we added M&A people and a person in Europe, for example. And I would say it was a little bit disconnected from the management teams. And it was almost like a center of excellence on M&A. We changed that approach about 6 to 8 months ago. And we said the management teams are responsible and the M&A person supports that. And so the M&A -- all of a sudden, the international management teams, the country director and his or her staff, Australia, the same thing in Southeast Asia, the same thing in Latin America, the same thing. You have a right to go and an obligation to go look at not just what you hear from the bankers for our M&A contact, but where do you want? What brands would you like to go and look at? And that has -- when we made it, I guess, their objective and they owned it, I'd say that was the unlock for us. And of course, our M&A team is enabling and helping. But I think we went into like right from first to third gear since we did that. Operator: Your next question comes from the line of Lauren Lieberman with Barclays. Lauren Lieberman: So I had two questions. First was at the risk of being redundant because I got a little bit confused on the way on Chris' question and the answer, which is the gross margin this quarter. I know you gave the bridge. But in total, it did come in below your expectations. And there wasn't a huge change on the inflation guide as you guys pointed out. So just curious on the slight shortfall in gross margins this quarter. And then my second question was just about how TOUCHLAND is trending. It's going to slide into organic sales going forward from here. So I just wanted to get an update on that brand. Lee McChesney: All right. So I'll take the first question. Yes, just to answer the question. We had just slightly higher transportation costs in the second quarter, even a little bit higher than we thought. But as we talked about for the year, we're still at $30 million. So same type of impact. Richard Dierker: And then on TOUCHLAND, I think my comments were really -- we had sales growth in the second quarter. We have a lot of back half weighted innovation, new collaborations with other brands and some activations up and down the channel. We expect sales growth in the second half of the year. And then we have a lot of work going on in innovation into, as we said before, another category or 2 and some other distribution opportunities, plus international expansion. I think that's a muscle that we've built really well with some of these brands now. It takes a little bit from regulatory perspective, but that's going to start hitting in 2027 as well. So that should be a tailwind. Operator: Your next question comes from the line of Javier Escalante with Evercore ISI. Javier Escalante Manzo: I guess the punchline in laundry is that ARM & HAMMER is holding share without promoting or promoting less and while the others promote. But I don't know whether I heard this correctly because it sounded like a big number. But did you say that Henkel increased promotional activity by how much? Richard Dierker: Yes, I said it's 1,100 basis points. Javier Escalante Manzo: Okay. So that's high. So what does it mean right now given how the oil is trending? Do you -- have you seen any change given that the category is so slow? So if you can clarify that a little bit. Richard Dierker: Yes. No, it's a good question, Javier. And look, I think I said last quarter, like when commodities are high and they stay high for a while, what tends to happen? Promotion tends to kind of dial back a bit. That is not what happened this past quarter. My belief is a lot of people got tariff refunds and they're spending it back and trying to drive volume. The good news for us is, again, ARM & HAMMER is at that intersection of value and just quality, and we don't need to promote as much in order to hit that kind of price point. And so we held share, which is fantastic. And as we increase promotion a little bit at historical levels, of course, I tend to think that we're going to continue to do what we've done for the last 15, 20 years is gain share in ARM & HAMMER year after year. Javier Escalante Manzo: And my second one is in cat litter, continue doing really well. You mentioned in Q1 that you got the strongest TDP growth in HPC, and we are seeing it. So any heading into back-to-school, any change in distribution, particularly in this business, if you can comment on that? Richard Dierker: Yes. I would say litter is doing extremely well. To have 7.5% consumption growth and almost a full share point gained is great. And we're doing that the right way. We're doing that the way we've always done it, which is innovation. ARM & HAMMER cat litter is just known for innovation. Our new one this year on DUAL DEFENSE with Microban is a great example of that. And some competitors are spending a lot. We're within historical levels, and we're doing all the right things. And we've talked before about some of the attributes of why ARM & HAMMER does so well. We have the orange box, we have the black box. We have premium value. So just again, litter is doing great. Operator: Your next question comes from the line of Robert Moskow with TD Cowen. Robert Moskow: One of the many positive surprises here is there's no mention of retailers reducing inventory in your categories. So my first question is, how do you think you dodge that bullet? Do you think it's because of the categories? Or do you think it's just because you, in particular, have the right inventory levels? And then I had another question on TOUCHLAND. You mentioned that it grew, but there's not a lot of commentary on how much it grew. Is the pace of growth decelerating compared to first quarter? Can you be more specific for us? Richard Dierker: Yes. So let's see. The first question is on retail inventory. Look, if you look back at all of our transcripts probably for the last 10 or 15 years, we've talked about retail inventory maybe 2 or 3 times, and 2 of those times were earlier in 2025. There's always dynamics that are happening with retail inventory, but we never believe they are impactful enough for us to comment on or something that we can't overcome. So there's, I would say, some movements, but overall immaterial. The second one is on TOUCHLAND. I would say the business is growing and our outlook for that is probably high single digits these days. But again, we're really comforted by the fact that we have this great innovation lineup. We have this great collab lineup coming, a lot of the support that we have in the back half with displays from these retailers. So yes, so TOUCHLAND continue to be optimistic about it. Operator: Your next question comes from the line of Filippo Falorni with Citi. Filippo Falorni: I wanted to ask about the international business. Solid performance there. It's now like continue to deliver on pretty tougher comparisons. Maybe can you give us a sense of what regions are driving the growth there? Where are you seeing the strength? And then the second part of the question, as you think about the opportunity for some of the recent acquisitions like THERABREATH, HERO, TOUCHLAND, how much more opportunity do you see for expansion of those brands internationally? Richard Dierker: Yes. I'll take the brand one, and then I'll let Lee talk about kind of the countries and the regions. But we are still in early innings for baseball analogy for THERABREATH and HERO and very early for TOUCHLAND. I think we're hitting #1 share positions in many, many countries all over the world. We have great retailer discussions about how we're growing kind of the acne category with HERO. And of course, the mouthwash rollout is a little bit slower than the acne rollout, but they're both doing extremely well. And once they get in market, these brands, because they are a problem solution, because consumers can see them working because they're premium brands for retail, they're driving category growth. Once they're in market, it starts to become kind of a virtuous cycle. Lee McChesney: And I'll just pick up from there. Certainly, HERO, THERABREATH, BATISTE is a great driver in the quarter for us. And then if you think about that, taking those -- we're taking those across the globe. That's what we do really well. So you ask like which part is doing well. Quite frankly, very broadly, Europe, for example, Europe, as economy wants to be slower, we're growing at the levels you see at the total level here, doing really well in Asia and Latin America as well. So we said this in the first quarter. First quarter had a little bit of impact in the Middle East. You take it out, it was growing towards mid- to high single digits. The outlook for the business is to be high single digits. That's what it is in the evergreen model, and it was great to see another strong quarter from them. Operator: Your next question comes from the line of Andrea Teixeira with JPMorgan. Andrea Teixeira: I just wanted to go back to what you mentioned about TDPs, Rick, in one of the categories. But I was hoping to see if you can explore a little bit on the TDPs on the laundry side and how we're cycling that. And you did say that you're not engaging your promo levels are below. Just curious and you're still getting share. Just curious to see the volume -- if you think about like volume share, if you can talk about that and as well as like how to think about TDPs for laundry and in general in the U.S. for the remainder of the year? And when you're cycling that, do you see that cycling some of the TDP growth into next year? Or you're cycling some of it like in the third quarter? Richard Dierker: Yes. So thanks, Andrea. Really, remember, last quarter, we kind of talked about our industry-leading TDP growth. And it was, I want to say, around 11% or 12%, and most of the industry average was at 5% or 6%. So we were double what most people were getting. And at the time, when we talked about TDP growth, I said it was very broad-based. It was across brands and across channels, and that was entirely true. So I think laundry, I don't have it in front of me, but I would guess it was high single digits for ARM & HAMMER. So that all was kind of towards the front part of the year. So it takes a while for that to reset. But -- so that's into next year is what I would say all those TDP results help with. Operator: Your next question comes from the line of Edward Lewis with Rothschild. Edward Lewis: Just a couple from me, please, Rick and Lee. Just on BATISTE, I guess one of your power brands is a bit of a tricky [ '25 ] here in the U.S. and you called out strength in international. But I just wondered how things are going in the U.S. for BATISTE. Is it a category challenge you're facing there? Or is it more of a brand challenge? And then I think you went live on the ERP, didn't you in April. And looking back at what sort of you talked about or in the Investor Day, you talked about it being an engine of growth in the future, at least for aided there who implementing it. And I just wonder, Rick, as the clear optimism you feel about the outlook for the business, how much does this new sort of upgraded ERP sort of feed into that optimism? Richard Dierker: Yes. Thanks, Ed. So for BATISTE, we've talked about this -- it's really a tale of 2 cities. BATISTE internationally is doing phenomenally well. It's growing double digits. It's one of the main drivers of growth behind THERABREATH and HERO, behind innovation, the right pricing strategy. Our international BATISTE business is doing extremely well. BATISTE in the U.S. is growing. We're growing a little short of the category. Category grew 5.5%. We grew closer to 2% from consumption. So we lost a little bit of share, 1.4%. That was closer to 4 or 5 share points in prior quarters. We are making great headway on BATISTE. I've seen the inflection. I'm not worried about BATISTE. We have a great set of actions that are already in market or lined up for market in late this year, early next year, on sizes and offerings and price pack architecture. So we have some great innovation queued up and just a lot of confidence in the BATISTE brand. So that's not something I really worry about long term. The ERP system, I think it's an underappreciated fact that we have a North American ERP system. And so as we do acquisitions, it is one of the things that enables us to do acquisitions so flawlessly and seamlessly. And just to give you a real-life example, we closed on MISS MOUTH's, I think, around June 1 or so. And we're going to be fully integrated by end of August. Like that is lightning fast even for us. And so that capability is, I think, again, just a great advantage for us. Operator: Your last question comes from the line of Kevin Grundy with BNP Paribas. Kevin Grundy: Two questions for me, Rick, related to the pricing environment, where it would certainly seem like the cost environment and cost inflation we're seeing would justify additional pricing. So a lot of discussion about brand strength broadly from Church and from some of your peers, but it doesn't seem like in certain cases, that the industry is looking at pricing as a lever to offset the cost inflation where there's a clear justification for that. Like for Procter, it's a more premium portfolio than you, Clorox, sort of well documented what's going on from a market share perspective. So I'm just trying to square some of the brand strength discussion and what would certainly appear to be a clear cost justification for additional pricing in this backdrop of a softer consumer environment, particularly in household products and some of the decisions not to take additional price. And what's different in the current environment versus past where the industry seems more inclined to move on price. So just your thoughts there, Rick, on retailers' openness for additional price in your portfolio, how you're thinking about it for Church and what you've included in your outlook? Richard Dierker: Yes. Thanks, Kevin. My answer doesn't really change a lot from what I talked about last quarter. I think in this environment, consumers are pressed. And we see that. Like when you see stuff go on promotion, I would say elasticities are higher than they normally would be. So consumers are pressed. And so our job is to help offset that as best we can. And we said last quarter, we're going to do that with productivity, and we are fighting hard to do that, and we've largely done that, which is great. We said that if we couldn't do that and this inflationary environment stays higher for longer, then we would look at pricing eventually. And that's still true. We believe -- we hope that this higher inflation environment isn't permanent. But meanwhile, we're fighting it with productivity. We're fighting it with trade and promotional optimization. And so far, we're winning. I mean look at our gross margin expansion as an example. I think a lot of our peer groups are going backwards on margin. So for a long time, typically, what you see is when inflation happens, promotional levels abate as a first step. That's not what's happening right now. Like I said before, I believe that a lot of tariff rebates are happening from retailers and to other manufacturers, and they're competing that away a bit. So that has to play out a bit, Kevin, is my short answer to you, but we're in a great position to win either way. Operator: There are no further questions at this time. I will now turn the call back to Mr. Rick Dierker for closing remarks. Richard Dierker: Okay. Thanks, everyone. Looking forward to talking again in the third quarter. And meanwhile, have a great rest of the summer. Bye. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Organic sales growth of 5.8% significantly exceeded the 3% outlook, driven by 4.3% volume growth and broad-based strength across all three divisions. Management attributes market share gains to a 'good, better, best' pricing strategy that aligns with resilient but value-conscious consumer spending. The ARM & HAMMER laundry business maintained record shares despite a significant step-up in competitor promotions, which management chose not to match to preserve margins. International growth of 9.1% was fueled by the rapid scaling of recent U.S. acquisitions like HERO and THERABREATH into global markets. The acquisition of MISS MOUTH'S targets a high-growth niche in stain removal with significant runway for distribution and household penetration gains. Innovation is expected to account for approximately half of the total organic growth for the year as new products gain traction in oral care and acne categories. Full-year organic sales outlook raised to 4% to 5% based on first-half momentum and continued distribution gains. Management raised the adjusted EPS growth outlook to 6% to 8%, reflecting confidence in productivity programs to offset inflationary pressures. The guidance assumes a crude oil price of approximately $90 per barrel and includes $30 million in transitory cost headwinds from Middle East conflicts. Marketing investment is planned at or above 11% of sales to support new product launches and maintain the 'virtuous cycle' of share growth. Strategic focus for 2027 includes further international expansion of recent U.S. acquisitions and leveraging the existing North American ERP system to continue seamless M&A integration. Adjusted gross margin improved by 40 basis points as productivity gains and favorable mix offset 400 basis points of inflation and tariff headwinds. Management expects to receive $15 million in Phase 2 tariff refund benefits in the second half of 2026, which will be reinvested into consumer-facing activities. The MISS MOUTH'S integration is proceeding at 'lightning fast' speed, with full integration expected within three months of the June closing. Competitive promotional levels in the cat litter category remain at historically high levels, while the laundry category has seen a step-up in competitor promotions., though Church & Dwight is currently promoting 300 basis points less than the prior year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that household penetration for THERABREATH (14%) and HERO (10%) remains low compared to category averages of 65% and 30%, respectively. The success of mouthwash has provided 'premium shelf space' for the new toothpaste launch, which has already captured a 1% market share. The company shifted M&A responsibility from a centralized 'center of excellence' to local international management teams to improve deal flow. Management has filtered through approximately 100 potential international deals over the last 6 to 12 months, focusing on 'problem-solution' brands. Management is currently prioritizing productivity over broad price increases to offset $30 million in new logistics and raw material costs. If inflationary pressures remain 'higher for longer,' the company will eventually look at pricing as a lever, though current gross margin expansion suggests productivity is sufficient. While BATISTE is growing double-digits internationally, U.S. consumption grew only 2%, lagging the 5.5% category growth. Management is implementing a 'set of actions' involving new sizes and price-pack architecture to address existing share loss with strategic actions planned for late 2026.

2026 Second Quarter Results Net Sales +1.6% Reflecting Strategic Portfolio Actions Organic Sales +5.8%: Domestic +5.1% | Int’l +9.1% | SPD +2.8%¹ Gross Margin 45.4%; Adjusted Gross Margin 45.4%¹ (+40 bps) Reported EPS $0.85, Adjusted EPS $0.89¹ Cash from Operations $286.8 Million (+24.3%) 2026 Full Year Outlook Net Sales Flat to +1% (Prior Range -1.5% to -0.5%) Organic Sales Growth +4% to 5%1 (Prior +3% to 4%) Adjusted Gross Margin Expansion of 100 to 120 bps EPS +20 to 22%; Adjusted EPS +6% to 8%¹ (Prior 5% to 8%) Cash From Operations ~$1.175 Billion (Prior $1.150 Billion) EWING, N.J., July 31, 2026--(BUSINESS WIRE)--Church & Dwight Co., Inc. (NYSE: CHD) today announced that the Company exceeded its second quarter outlook with stronger than expected sales and earnings growth. Net sales increased 1.6% to $1,530.0 million in the second quarter, exceeding the Company’s outlook of a 1% decline and reflecting the benefits of its successful 2025 strategic portfolio actions. Organic sales growth accelerated to 5.8%, well above the Company’s 3% outlook, with growth across all three divisions, driven primarily by volume growth of 4.3% and positive price and mix of 1.5%. During the quarter, the company also acquired the fast-growing MISS MOUTH’S MESSY EATER™ brand, the #1 stain remover brand on Amazon. Rick Dierker, Chief Executive Officer, commented, "Our power brands continued to perform exceptionally well in a challenging macroeconomic environment, driving a second straight quarter of industry-leading organic sales growth. Despite ongoing volatility, we delivered a strong first half of growth. In the quarter, our brands once again gained share driven by innovation, distribution wins, and increased marketing investments. The strength of our brand portfolio, combined with the strategic portfolio actions we implemented in 2025, has enhanced our focus on our growth initiatives and reinforces our confidence as we enter the second half of 2026. We are raising our outlook for sales, earnings per share and cash flow. I want to thank the entire Church & Dwight team for all their efforts and focus in delivering these strong results. "In the second quarter, the Domestic division grew 5.1% organically reflecting sustained strength across both our household and personal care portfolios. The International division grew 9.1% organically driven by broad-based growth across the Global Markets Group and our subsidiaries. Our Specialty Products division grew organic sales 2.8% as the business delivered balanced results across the globe. Global e-commerce grew 22.7% in the second quarter with global online sales now representing 25.5% of the Company’s total consumer sales, reflecting the continued strength of our digital capabilities and brands. We were also encouraged by the strong initial sales results from our MISS MOUTH’S brand following the acquisition in June. "Second quarter reported EPS was $0.85, compared to $0.78 last year. Second quarter Adjusted EPS of $0.89 exceeded the Company’s outlook of $0.88 as stronger-than-expected sales drove earnings growth and enabled incremental investments in our brands. Compared to Adjusted EPS of $0.94 last year, strong sales and gross margin expansion supported increased marketing investments and reflected the impacts of TOUCHLAND’s amortization and SG&A expenses. The Company also generated strong cash flow in the quarter, and we now expect approximately $1.175 billion of cash from operations this full-year 2026." Second Quarter Review Consumer Domestic net sales were $1,155.8 million, a $1.7 million or 0.1% increase. Organic sales increased 5.1% driven by volume growth (+3.6%) and favorable price and product mix (+1.5%). Organic sales growth was driven by THERABREATH™ mouthwash and toothpaste, HERO™, ARM & HAMMER™ cat litter, and ZICAM™. Reported Consumer Domestic sales also included growth from the acquisitions of TOUCHLAND™ and MISS MOUTH’S offset by the sales impact from last year’s strategic portfolio actions. Consumer International net sales were $297.5 million, a $19.9 million or 7.2% increase. Organic sales increased 9.1% driven by higher volume (+7.3%) and favorable price and product mix (+1.8%). Growth was driven by the THERABREATH, HERO, and BATISTE™ brands. Specialty Products net sales were $76.7 million, a $2.1 million or 2.8% increase. Organic sales also increased 2.8% due to a combination of higher volume (+1.3%) and higher price and product mix (+1.5%). Gross margin increased 240 basis points to 45.4%. Adjusted gross margin was also 45.4%1, an increase of 40 basis points driven by higher volume, productivity, favorable mix from our acquisitions and portfolio actions partially offset by higher inflation and recent transportation cost increases. Marketing expense was $165.3 million, up $8.2 million and 40 basis points as a percentage of sales compared to last year. The Company continues to invest in its brands and new products, supporting our innovation, and growth initiatives. Selling, general, and administrative expense (SG&A) was $252.2 million, including $6.3 million of charges related to restricted stock issued for the TOUCHLAND acquisition. Adjusted SG&A was $241.4 million1 or 15.8% of net sales, a 220-basis point increase over prior year reflecting the amortization and SG&A expenses related to the Touchland acquisition. Income from Operations was $276.4 million. Adjusted income from operations was $287.2 million, a decrease of $28.7 million compared to prior year.1 Strong organic sales growth and gross margin expansion was offset by the increased investments in marketing and the higher SG&A expenses. Other Expense increased $9.2 million reflecting lower interest income. The adjusted effective tax rate decreased to 20.3% in the second quarter from 23.8% last year as a result of continued tax planning initiatives. Cash Flow Strong cash flow generation and the strength of our balance sheet remains a hallmark of our business and provides substantial flexibility to invest in growth and pursue strategic opportunities. Cash from operations for the first six months of 2026 was $461.6 million, an increase of 10.8% versus prior year, driven by higher cash earnings and disciplined working capital management. Capital expenditures totaled $61.8 million in the first half, an increase of $22.8 million versus the prior year, supporting continued sales growth. We continue to expect full-year capital expenditures for the full year to be approximately $130 million or 2% of sales. As of June 30, 2026, the Company’s total debt was $2.3 billion and cash-on-hand was $254.8 million. 2026 New Products "Innovation has always been a key driver of our organic growth, and the first half of this year was no exception," said Mr. Dierker. "We are confident that our relentless focus on innovation will continue to drive industry-leading growth, distribution gains at shelf, and market share expansion. New product launches this year are expected to account for approximately half of our organic growth as we innovate in key categories across our portfolio of everyday brands and products." The Company’s 2026 innovation portfolio is focused on the following: THERABREATH™ continued the momentum behind its new toothpaste launch with robust marketing campaign that drove trial and built every-day regimen for our new toothpaste product line. The new line includes four variants addressing top consumer oral care needs with its effective cleaning and distinctively fresh flavor profile. Consumer reviews across multiple platforms show strong reviews with an average rating of 4.5 stars. In rinse, THERABREATH™ launched new Complete Revitalizing Mint with 6-in-1 benefits and its signature alcohol-free, no burn, dye-free experience. THERABREATH™ Complete is now the top-selling new Rinse sold nationally. THERABREATH™ also just launched new portable rinse sachets in both Invigorating Icy Mint and Anti-cavity Sparkle Mint for freshness on the go. Available in 10ct packs, they are designed for travel, purse or pocket – whenever and wherever the need for fresh breath arises. ARM & HAMMER™ Cat Litter launched DUAL DEFENSE™ with Microban® Clumping Litter. This innovative formula delivers two layers of powerful protection: ARM & HAMMER™ odor-eliminating technology that seals and destroys odors, plus active Microban® antimicrobial product protection. Designed for germ-conscious pet parents, DUAL DEFENSE™ provides elevated confidence and a fresher experience. The launch is off to a strong start, supported by marketing investment and positive consumer response, earning a 4.6-star consumer rating. HERO™ is bringing its acne expertise to the cleanser category with a lineup of cleansers that address distinct needs for the acne-prone consumer. Mighty Cleanser™, Pore Cleanser and Gentle Cleansers, includes powerhouse ingredients that deliver the perfect balance of efficacy and gentleness; designed to tackle acne without the dryness and irritation of traditional acne products. HERO™ MIGHTY SHIELD™ liquid patch is a first-of-its-kind breakthrough for consumers who want to treat breakouts without compromising their look. This innovative liquid-to-patch film creates an invisible protective barrier that seals blemishes as they heal, blending seamlessly under makeup for effortless coverage and confidence. Outlook for 2026 "We are executing with excellence in a challenging environment," said Mr. Dierker. Our focus remains on providing consumers with high-quality, solution-oriented products at the right value. Our improved outlook reflects the strength of our operating fundamentals, led by volume growth, market share gains and gross margin expansion. "While the situation in the Middle East creates some inflationary pressure, we continue to expect that we can offset this transitory cost pressure in 2026. "Separately, we now expect to receive approximately $15 million of phase II tariff refund benefits in the second half of the year. The Company will invest these proceeds in consumer-facing activities and to offset inflationary pressures. "We are raising our organic sales growth to approximately 4% to 5%, from our prior expectations of 3% to 4%, reflecting our strong first half growth performance and our confidence in continued momentum during the second half of the year. ¹ We also have raised our reported sales to approximately flat to 1% growth, versus our prior view of a sales decline of approximately 1.5% to 0.5%. This improvement reflects the strength of our organic growth momentum and the contribution from the MISS MOUTH’s ™ brand. I am especially excited about the growth opportunities for MISS MOUTH’s over the next 12-18 months. "Full-year adjusted gross margin is now expected to expand approximately 100 to 120 basis points. Volume growth, productivity, and favorable mix from our acquisitions and portfolio actions are expected to fully offset inflation, transportation and tariff-related costs. "Marketing as a percentage of sales is now expected to be at or above 11% of sales reflecting our increased level of brand investment. "We continue to expect SG&A as a percentage of sales to remain above 2025 levels, reflecting the impact of the TOUCHLAND and MISS MOUTH’S acquisitions and our targeted investments in growth initiatives, AI, ecommerce and our international business. "Our adjusted tax rate is now expected to be approximately 21% (previously 21.5%). "We now expect full-year reported EPS to increase approximately 20% to 22%. We are raising our Adjusted EPS expectation for 2026 to 6% to 8% growth, from our prior expectation of 5% to 8%. This improvement reflects strong growth across all three divisions, continued gross margin expansion and our disciplined reinvestments in our business. "Cash flow from operations is now expected to be approximately $1.175 billion (previously $1.150 billion) reflecting our improved earnings outlook. We will continue to pursue acquisitions that meet our strict criteria, with an emphasis on fast-moving consumable products, similar to the successful THERABREATH, HERO, TOUCHLAND and MISS MOUTH’S acquisitions. "For the third quarter, we expect organic sales growth of approximately 3%¹ and reported sales to decline approximately 1%, driven entirely by the strategic portfolio actions taken in 2025. Further, gross margin expansion will continue and marketing spending will sequentially increase to approximately 12% of sales. We expect higher SG&A and a tax rate of approximately 21.5%. Overall, adjusted EPS is expected to be approximately $0.89 per share, an increase of 10% versus last year." ¹ ¹ Organic Sales, Adjusted Gross Margin, Adjusted SG&A, Adjusted Income from Operations, Adjusted Tax Rate, and Adjusted EPS are non-GAAP measures. See non-GAAP reconciliations included at the end of this release. Church & Dwight Co., Inc. (NYSE: CHD) will host a webcast to discuss second quarter 2026 results on July 31, 2026, at 10:00 a.m. (ET). The webcast will be broadcast online. About Church & Dwight Co., Inc. Church & Dwight Co., Inc. (NYSE: CHD) founded in 1846, is the leading U.S. producer of sodium bicarbonate, popularly known as baking soda. The Company manufactures and markets a wide range of personal care, household, and specialty products under recognized brand names such as ARM & HAMMER®, TROJAN®, OXICLEAN®, FIRST RESPONSE®, NAIR®, ORAJEL®, XTRA®, BATISTE®, WATERPIK®, ZICAM®, THERABREATH®, HERO®, TOUCHLAND® and MISS MOUTH’S®. For more information, visit the Company’s website. Church & Dwight has a longstanding heritage of commitment to people and the planet. In the early 1900’s, we began using recycled paperboard for all packaging of household products. Today, virtually all our paperboard packaging is from certified, sustainable sources. In 1970, the ARM & HAMMER™ brand introduced the first nationally distributed, phosphate-free detergent. That same year, Church & Dwight was honored to be one of a few corporate sponsors of the first annual Earth Day. Most recently in 2024 and 2025, our ongoing progress earned continued public recognition, including Time Magazine’s Ranking of the World’s Most Sustainable Companies, Newsweek Magazine’s Americas Most Responsible Companies, USA Today’s Ranking of America’s Climate Leaders, EPA’s Safer Choice Partner of the Year, FTSE4Good Index Series, amongst others. For more information, see the Church & Dwight 2025 Sustainability Report on the Company’s website. This press release contains forward-looking statements, including, among others, statements relating to net sales and earnings growth; the impact of tariffs; gross margin changes; trade and marketing spending; marketing expense as a percentage of net sales; sufficiency of cash flows from operations; earnings per share; the impact of new accounting pronouncements; cost savings programs; recessionary conditions; interest rates; inflation; consumer demand and spending; the effects of competition; the effect of product mix; volume growth, including the effects of new product launches into new and existing categories; the impact of acquisitions; and capital expenditures. Other forward-looking statements in this release may be identified by the use of such terms as "may," "could," "expect," "intend," "believe," "plan," "estimate," "outlook," "forecast," "project," "anticipate," "to be," "to make" or other comparable terms. These statements represent the intentions, plans, expectations and beliefs of the Company, and are based on assumptions that the Company believes are reasonable but may prove to be incorrect. In addition, these statements are subject to risks, uncertainties and other factors, many of which are outside the Company’s control and could cause actual results to differ materially from such forward-looking statements. Factors that could cause such differences include a decline in market growth, retailer distribution and consumer demand (as a result of, among other things, political, economic and marketplace conditions and events), including those relating to the outbreak of contagious diseases; the impact of new regulations and legislation and change in regulatory priorities; shifting economic policies in the United States; potential changes in export/import and trade laws, regulations and policies of the United States and other countries, including any increased trade restrictions or tariffs; increased or changing regulation regarding the Company’s products and its suppliers in the United States and other countries where it or its suppliers operate; the impact on the global economy of the Russia/Ukraine war and conflict in the Middle East, including the impact of export controls and other economic sanctions; potential recessionary conditions or economic uncertainty; the impact of continued shifts in consumer behavior, including accelerating shifts to on-line shopping; unanticipated increases in raw material and energy prices, including as a result of the Russia/Ukraine war, conflict in the Middle East or other inflationary pressures; delays and increased costs in manufacturing and distribution; increases in transportation costs; labor shortages; the impact of price increases for our products; the impact of inflationary conditions; the impact of supply chain and labor disruptions; the impact of severe or inclement weather on raw material and transportation costs; adverse developments affecting the financial condition of major customers and suppliers; competition; changes in marketing and promotional spending; growth or declines in various product categories and the impact of customer actions in response to changes in consumer demand and the economy, including increasing shelf space or on-line share of private label and retailer-branded products or other changes in the retail environment; impairment charges or other negative impacts to the value of the Company’s assets; consumer and competitor reaction to, and customer acceptance of, new product introductions and features; our ability to complete the announced strategic alternatives for certain of our businesses and realize the intended benefits; the risk that the announcement of strategic alternatives could have an adverse effect on the Company; the Company’s ability to maintain product quality and characteristics at a level acceptable to our customers and consumers; disruptions in the banking system and financial markets; the Company’s borrowing capacity and ability to finance its operations and potential acquisitions; higher interest rates; foreign currency exchange rate fluctuations; market volatility; issues relating to the Company’s information technology and controls; the impact of natural disasters, including those related to climate change, on the Company and its customers and suppliers, including third party information technology service providers; integrations of acquisitions or divestiture of assets; the outcome of contingencies, including litigation, pending regulatory proceedings and environmental matters; and changes in the regulatory environment in the countries where we do business. For a description of additional factors that could cause actual results to differ materially from the forward-looking statements, please see Item 1A, "Risk Factors" in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the U.S. federal securities laws. You are advised, however, to consult any further disclosures the Company makes on related subjects in its filings with the United States Securities and Exchange Commission. This press release also contains non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of the Company’s financial performance, identifying trends in its results and providing meaningful period-to-period comparisons. The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for these reconciliations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP financial measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read in connection with the Company’s financial statements presented in accordance with GAAP. Non-GAAP Measures:The following discussion addresses the non-GAAP measures used in this press release and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures. These non-GAAP financial measures should not be considered in isolation from or as a substitute for the comparable GAAP measures. The following non-GAAP measures may not be the same as similar measures provided by other companies due to differences in methods of calculation and items and events being excluded. Organic Sales Growth:This press release provides information regarding organic sales growth, namely net sales growth excluding the effect of acquisitions, divestitures and foreign exchange rate changes. Management believes that the presentation of organic sales growth is useful to investors because it enables them to assess, on a consistent basis, sales trends related to products that were marketed by the Company during the entirety of relevant periods, excluding the impact of acquisitions, divestitures, and foreign exchange rate changes that are out of the control of, and do not reflect the performance of the Company and management. Adjusted Gross Margin:This press release provides information regarding adjusted gross margin, namely gross margin calculated in accordance with GAAP, as adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We believe that this metric provides investors a useful perspective of underlying business trends and results and provides useful supplemental information regarding our year over year gross margin. Adjusted Selling, General, and Administrative Expense (SG&A):This press release also presents adjusted SG&A, namely, SG&A calculated in accordance with GAAP, as adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We believe that this metric provides investors a useful perspective of underlying business trends and results and provides useful supplemental information regarding our year over year SG&A expense. Adjusted Income from Operations:This press release also presents adjusted income from operations, namely income from operations calculated in accordance with GAAP, as adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We believe that this metric provides investors a useful perspective of underlying business trends and results and provides useful supplemental information regarding our year over year income from operations. Adjusted EPS:This press release also presents adjusted earnings per share, namely, EPS calculated in accordance with GAAP, as adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We believe that this metric provides investors a useful perspective of underlying business trends and results and provides useful supplemental information regarding our year over year EPS growth. View source version on businesswire.com: https://www.businesswire.com/news/home/20260731043652/en/ Contacts Lee McChesneyChief Financial Officer609-806-1200

This article first appeared on GuruFocus. Net Sales Growth: Reported net sales increased 1.6% in Q2, ahead of company outlook. Organic Sales Growth: Organic sales grew 5.8%, well above the 3% outlook, driven by volume growth of 4.3% and positive price/mix of 1.5%. Adjusted Gross Margin: 45.4%, an increase of 40 basis points versus last year. Adjusted EPS: $0.89, exceeding the $0.88 outlook. Marketing Expense: $165 million in Q2, up $8.2 million or 40 basis points versus last year. Adjusted SG&A: $241.4 million, or 15.8% of net sales, a 220 basis point increase versus the prior year. Cash from Operations (First Half): $462 million, an increase of 10.8% versus the prior year. Capital Expenditures (First Half): $61.8 million; full-year expectation remains approximately $130 million or roughly 2% of sales. Domestic Organic Sales Growth: Increased 5.1% in Q2. International Organic Sales Growth: Delivered 9.1% growth in Q2. Specialty Products Division Sales Growth: 2.8% in Q2. Global E-commerce Growth: Grew 22.7% in Q2; global online sales now represent 25.5% of total consumer sales. ARM & HAMMER Cat Litter Consumption: Grew 7.5% with share increasing 0.8 points to 24.5%. Therabreath Share: Jumped 4.5 points to a 25.3% share in total mouthwash. Miss Mouth Brand: Consumption grew over 50% and gained almost 3.5 share points in Q2. Full-Year Organic Sales Outlook: Raised to approximately 4% to 5%, up from 3% to 4%. Full-Year Adjusted Gross Margin Expansion Outlook: Now expected to be approximately 100 to 120 basis points. Full-Year Adjusted EPS Growth Outlook: Raised to 6% to 8% versus prior expectation of 5% to 8%. Full-Year Cash from Operations Outlook: Approximately $1.175 billion, up from $1.15 billion. Third Quarter Organic Sales Outlook: Approximately 3% growth. Third Quarter Adjusted EPS Outlook: Approximately $0.89 per share, representing roughly 10% growth versus prior year. Warning! GuruFocus has detected 2 Warning Sign with CHD. Is CHD fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Church & Dwight Co Inc (NYSE:CHD) delivered strong Q2 2026 results with organic sales growth of 5.8%, well above the 3% outlook, driven by broad-based volume growth of 4.3%. The company raised its full-year 2026 outlook for sales, EPS, and cash flow, reflecting confidence in continued momentum. The acquisition of Miss Mouth, a fast-growing stain remover brand, is off to a strong start with consumption up over 50% and significant room for distribution and household penetration growth. TheraBreath continues to gain market share, reaching a record 25.3% share in mouthwash, with low household penetration indicating substantial growth runway, including in toothpaste. International business delivered strong organic sales growth of 9.1%, driven by successful scaling of brands like Hero and TheraBreath across global markets. Gross margin expanded by 40 basis points in Q2, driven by productivity programs and favorable mix, despite headwinds from inflation and tariffs. Global e-commerce sales grew 22.7% in Q2, now representing 25.5% of total consumer sales, highlighting strong digital momentum. The company faces significant cost headwinds from inflation, tariffs, and transportation, totaling approximately $30 million in 2026, which partially offset margin gains. Competitive promotional activity in laundry increased, with competitors like Henkel and Procter & Gamble ramping up promotions, while Church & Dwight Co Inc (NYSE:CHD) reduced its own promotional spending. ARM & HAMMER laundry detergent saw flat consumption growth in Q2, with the company losing some share due to lower promotional activity. The company's SG&A expenses increased by 220 basis points as a percentage of net sales, partly due to the inclusion of Touchland's SG&A and amortization. The macro environment remains volatile, with consumer elasticities higher than normal, making it challenging to pass on price increases. Batiste brand in the US is growing below category rates, losing share, although international performance is strong. The company expects Q3 organic sales growth of only 3%, a deceleration from Q2's 5.8%, indicating a more cautious outlook for the near term. Q: What drove the significant upside in organic sales growth for the quarter?A: Rick Dierker (CEO) attributed the strong 5.8% organic growth to broad-based performance across all three divisions. Key drivers included Therabreath, ARM & HAMMER Cat Litter, and Hero. CFO Lee McChesney added that the growth was widespread, with international sales up 9.1% and strong contributions from Europe, Asia, and Latin America. Q: Can you provide more granularity on the expected growth rates for the newly acquired Miss Mouth brand?A: Rick Dierker (CEO) stated it's too early to provide specific growth rates, but expressed high excitement about the acquisition. He noted the brand's household penetration is only 2.5% versus the category's 50%, and ACV is 35% versus 80%, indicating significant room for growth. The brand has already achieved a 13% share at a major retailer shortly after integration. Q: How is ARM & HAMMER performing in the laundry category given increased competitive promotions?A: Rick Dierker (CEO) highlighted that despite competitors significantly increasing promotional activity (Henkel up 1,100 basis points, Procter up 200 basis points), ARM & HAMMER maintained its share while reducing its own promotions by 300 basis points. The value segment continues to grow, and the company's "good, better, best" strategy is working well across all tiers, including a 30% growth in their laundry sheets business. Q: How is the Therabreath toothpaste launch tracking relative to your ambitions, and is it exceeding expectations?A: Rick Dierker (CEO) confirmed Therabreath toothpaste is off to a strong start, meeting or slightly beating expectations. The brand achieved a 1-point share in total toothpaste despite only recently entering brick-and-mortar retail. The success of the mouthwash business (25.3% share, up 4.5 points) is facilitating retailer conversations for the toothpaste expansion. Q: How quickly did the Middle East conflict-related inflation develop, and should we expect similar levels in the back half of the year?A: Lee McChesney (CFO) explained that the $30 million inflation impact was front-end loaded in Q2 due to immediate transportation cost increases. The company has accelerated productivity initiatives to mitigate this, with more benefits expected in the back half. They maintain their outlook of 100-120 basis points of gross margin expansion for the full year, implying over 100 basis points of expansion in H2. Q: Why did you raise the top-line guidance but keep the high end of EPS growth unchanged, and how much more do you plan to reinvest?A: Rick Dierker (CEO) explained the company's consistent strategy of reinvesting when over-delivering. They're increasing marketing investments to at or above 11% of sales and pulling forward AI initiatives to scale faster. This approach maintains the "virtuous cycle" of gaining share and supporting innovation launches, even if it means not maximizing short-term EPS. Q: What were the consumption trends throughout the quarter, and what are you assuming for category growth in the back half?A: Rick Dierker (CEO) noted that consumption in their largest categories grew 2.7% in Q2, exceeding their 2% expectation. Monthly consumption numbers were "fantastic" throughout the quarter, with June also strong except for laundry where they chose not to repeat certain promotions. The company maintains its assumption of around 2% category growth going forward. Q: Can you elaborate on why you're more optimistic about the future than ever before?A: Rick Dierker (CEO) cited three key growth initiatives: category work around ARM & HAMMER with positive retailer feedback, Therabreath's success and global expansion potential, and international M&A progress. He noted they've filtered through 100 international deals in the past 6-12 months, with the process transitioning from theoretical to practical. Q: How are you combating competitors' increased investments in affordability initiatives?A: Rick Dierker (CEO) emphasized the company's strong track record of competing in household products over two decades. He noted that ARM & HAMMER brands naturally sit at the intersection of high quality and value pricing, requiring less promotional activity than competitors. The company's strategy focuses on innovation, right price-pack architecture, and sizing to deliver value without aggressive discounting. Q: What is driving the strong performance in the international business, and how much opportunity remains for recent acquisitions?A: Lee McChesney (CFO) noted that Hero and Therabreath are major drivers internationally, with growth broad-based across Europe, Asia, and Latin America. Rick Dierker (CEO) added that these brands are still in "early innings" internationally, achieving number one share positions in many countries. The company's ability to scale brands globally is improving, creating a virtuous cycle once brands enter new markets. Q: How is the promotional environment affecting pricing decisions, and why isn't the industry taking more pricing given clear cost justification?A: Rick Dierker (CEO) explained that consumers are financially pressed, resulting in higher elasticities when products go on promotion. The company is offsetting inflation through productivity gains and trade promotion optimization rather than pricing. He noted that while typically inflation leads to reduced promotions, tariff rebates are causing competitors to spend more on promotions, a dynamic that needs to play out. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Church & Dwight (CHD) reported $1.53 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 1.6%. EPS of $0.89 for the same period compares to $0.94 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.5 billion, representing a surprise of +1.79%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.89. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Church & Dwight performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net sales- Total Consumer Net Sales: $1.45 billion versus the five-analyst average estimate of $1.42 billion. The reported number represents a year-over-year change of +1.5%. Net sales- Consumer- Consumer Domestic: $1.16 billion compared to the $1.13 billion average estimate based on five analysts. The reported number represents a change of +0.2% year over year. Net sales- Consumer- Consumer International: $297.5 million compared to the $295.67 million average estimate based on five analysts. The reported number represents a change of +7.2% year over year. Net sales- Specialty Products Division: $76.7 million compared to the $78.18 million average estimate based on five analysts. The reported number represents a change of +2.8% year over year. Net sales- Consumer- Consumer Domestic- Household Products: $662 million versus $664.69 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +1.9% change. Net sales- Consumer- Consumer Domestic- Personal Care Products: $493.8 million compared to the $469.59 million average estimate based on three analysts. The reported number represents a change of -2% year over year. View all Key Company Metrics for Church & Dwight here>>> Shares of Church & Dwight have returned -0.9% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Church & Dwight Co., Inc. CHD delivered a solid second quarter of 2026, supported by broad-based organic growth, higher volumes and continued momentum across its key consumer brands. The company also raised its full-year sales, earnings and cash flow outlook.Adjusted earnings were 89 cents per share, down 5.3% year over year, and in line with the Zacks Consensus Estimate. Net sales increased 1.6% to $1,530 million, beating the consensus mark of $1,503 million. Organic sales rose 5.8%, driven by 4.3% volume growth and a 1.5% contribution from pricing and product mix. Church & Dwight Co., Inc. price-consensus-eps-surprise-chart | Church & Dwight Co., Inc. Quote Organic sales growth exceeded management’s 3% expectation for the quarter. Performance was supported by THERABREATH mouthwash and toothpaste, HERO, ARM & HAMMER cat litter and ZICAM.Global e-commerce sales advanced 22.7% and represented 25.5% of total consumer sales. Management also cited encouraging initial sales from MISS MOUTH’S MESSY EATER following the brand’s acquisition in June. Adjusted gross margin increased 40 basis points year over year to 45.4%. The improvement reflected higher volumes, productivity and favorable mix from acquisitions and portfolio actions.These benefits were partly offset by inflation and higher transportation costs. Marketing expenses rose $8.2 million to $165.3 million and represented 10.8% of net sales, up 40 basis points from the prior-year quarter. Adjusted selling, general and administrative expenses were $241.4 million, or 15.8% of net sales. The expense ratio increased 220 basis points year over year, reflecting TOUCHLAND-related amortization and operating costs.Adjusted income from operations declined $28.7 million to $287.2 million. Adjusted operating margin contracted 220 basis points to 18.8%, as gross margin expansion and organic growth were more than offset by higher marketing and administrative spending. Consumer Domestic net sales increased 0.1% to $1,155.8 million. Organic sales rose 5.1%, supported by 3.6% volume growth and a 1.5% contribution from pricing and product mix.Consumer International net sales increased 7.2% to $297.5 million. Organic sales climbed 9.1%, driven by a 7.3% jump in volume and a 1.8% benefit from price and mix. THERABREATH, HERO and BATISTE were the main growth contributors.Specialty Products net sales advanced 2.8% to $76.7 million. Organic sales also increased 2.8%, reflecting a 1.3% rise in volume and a 1.5% contribution from pricing and product mix. Cash from operations totaled $461.6 million in the first six months of 2026, up 10.8% year over year. Capital expenditures increased $22.8 million to $61.8 million as the company continued to invest in capacity and sales growth initiatives.Church & Dwight ended June with $254.8 million in cash and approximately $2,300 million in total debt. Full-year capital expenditures are still expected to be approximately $130 million, or about 2% of sales. Management now expects organic sales growth of 4% to 5% in 2026, up from its prior forecast of 3% to 4%. Reported sales are projected to range from flat to growth of 1% compared with the earlier expectation for a decline of 1.5% to 0.5%.Adjusted earnings are now expected to increase 6% to 8% compared with the previous forecast of 5% to 8% growth. Adjusted gross margin is projected to expand 100 to 120 basis points, while cash from operations is expected to reach approximately $1,175 million. For the third quarter of 2026, the company expects organic sales growth of approximately 3%. Reported sales are projected to decline about 1%, reflecting strategic portfolio actions completed in 2025.Adjusted earnings are expected to be approximately 89 cents per share, up 10% year over year. The outlook also assumes continued gross margin expansion, marketing expenses of roughly 12% of sales, higher SG&A expenses and an adjusted tax rate of approximately 21.5%.This Zacks Rank #3 (Hold) stock has risen 1.7% over the past three months compared with the industry’s 2.6% growth. United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks hereThe consensus estimate for United Natural’s current fiscal-year earnings per share (EPS) stands at $2.52, which implies substantial growth from the year-ago period earnings of 71 cents. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.US Foods Holding Corp. USFD engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 1.4%, on average.The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago figures.The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report US Foods Holding Corp. (USFD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Church & Dwight Co., Inc.? Here are five stocks we like better. Church & Dwight exceeded Q2 expectations, with net sales up 1.6%, organic sales up 5.8% and adjusted EPS of $0.89. Growth was driven by 4.3% volume gains, market-share increases and successful innovation. Strong performance came from brands including TheraBreath, ARM & HAMMER, Hero and ZICAM, while the newly acquired Miss Mouth stain-remover brand showed more than 50% consumption growth and significant distribution potential. The company raised its full-year outlook: organic sales growth is now expected at 4%–5%, adjusted EPS growth at 6%–8%, gross-margin expansion at 100–120 basis points and operating cash flow at approximately $1.175 billion. Getting Defensive: 3 Dividend Payers Reporting Strong Q3 Earnings Church & Dwight (NYSE:CHD) reported second-quarter results that exceeded its prior outlook, driven by broad-based volume growth, market-share gains and contributions from innovation. The company raised its full-year sales, earnings and cash-flow outlook despite what management described as a dynamic operating environment marked by inflation, tariffs and transportation costs. Net sales increased 1.6% in the second quarter, while organic sales rose 5.8%, ahead of the company’s approximately 3% forecast. Organic growth was led by 4.3% volume growth and 1.5% from price and mix. Adjusted earnings per share were $0.89, above the company’s $0.88 outlook, while adjusted gross margin increased 40 basis points to 45.4%. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 3 Recession-Ready Stocks That Thrive When the Economy Sputters “Our brands continue to perform exceptionally well, driving a second straight quarter of industry-leading organic sales growth,” President and Chief Executive Officer Rick Dierker said. He said consumer spending remained resilient and the company’s categories were growing faster than initially expected. Domestic organic sales rose 5.1%, supported by growth in both household and personal-care products. Dierker highlighted TheraBreath mouthwash and toothpaste, Hero acne products, ARM & HAMMER cat litter and ZICAM as key contributors. → Microsoft Just Flipped the AI Spending Narrative Overnight Shield Your Portfolio From Aug. 1 Tariffs With This Low-Vol ETF ARM & HAMMER cat litter consumption increased 7.5% during the quarter, and market share rose 0.8 points to 24.5%. The company said its recently launched Dual Defense with Microban clumping litter continued to perform well. ARM & HAMMER laundry detergent consumption and category consumption each grew about 1%, despite heightened promotional activity among competitors and lower promotional spending by the company. TheraBreath gained 4.5 share points in mouthwash, reaching a 25.3% share and further strengthening its position as the No. 2 brand in total mouthwash, according to Dierker. The TheraBreath toothpaste launch reached a 1-point share in total toothpaste after entering brick-and-mortar stores more fully in recent months. → Carrier Earnings Could Send the Stock to a New All-Time High Dierker said TheraBreath toothpaste was meeting or slightly exceeding expectations, aided by the performance of the mouthwash brand. He also pointed to low household penetration for TheraBreath—14%, compared with 65% for the mouthwash category—as an opportunity for additional growth. Hero’s consumption outpaced the acne patch category, while the company began introducing a cleanser product. Dierker said facial cleansers represent a $650 million category and approximately 30% of the acne category. Hero’s household penetration was 10%, versus 30% for the category. New product launches are expected to account for about half of Church & Dwight’s organic growth in 2026, management said. Global e-commerce sales grew 22.7% in the quarter and represented 25.5% of total consumer sales. Church & Dwight completed its acquisition of Miss Mouth in June. The company described the brand as the No. 1 stain remover on Amazon and said consumption grew more than 50% in the second quarter, with market share increasing by nearly 3.5 points. Dierker said the company sees substantial distribution and household-penetration opportunities for the brand. Miss Mouth’s household penetration is about 2.5%, compared with 50% for the stain-remover category, while its all-commodity-volume distribution is 35%, compared with 80% for the category. “We don’t think we’ve been more excited about an acquisition in a long time,” Dierker said during the question-and-answer session, while adding that it was too early to provide detailed long-term growth targets. He said the business is being integrated into the company’s fabric-care operations and that it is already gaining traction with retailers. International organic sales increased 9.1%, supported by volume growth and favorable price and mix. Chief Financial Officer Lee McChesney said growth was broad-based across Europe, Asia and Latin America. Hero, TheraBreath and Batiste were among the brands supporting international performance. Dierker also said Church & Dwight has reviewed roughly 100 potential international acquisition opportunities over the past six to 12 months. The company recently shifted responsibility for identifying potential transactions more directly to regional management teams, with corporate M&A staff providing support. McChesney said adjusted gross margin benefited from 150 basis points of productivity programs, 110 basis points from higher-margin acquisitions and portfolio actions, and 180 basis points from volume, price and mix. Those gains were partly offset by 400 basis points of inflation, tariffs and transportation costs. Marketing expense increased $8.2 million, or 40 basis points from the prior year, to $165 million. The company said it intends to reinvest stronger sales and margin performance in brands, innovation and consumer-facing activities. Dierker said the company is also advancing investments in artificial intelligence initiatives intended to help it scale more quickly. Cash from operations totaled $462 million in the first half, up 10.8% from a year earlier. Capital expenditures were $61.8 million, and Church & Dwight maintained its full-year capital-spending expectation of roughly $130 million. Full-year organic sales growth is now expected to be approximately 4% to 5%, up from 3% to 4%. Adjusted gross margin is expected to expand by approximately 100 to 120 basis points. Adjusted EPS growth is now projected at 6% to 8%, compared with the previous 5% to 8% outlook. Cash from operations is expected to reach approximately $1.175 billion, up from $1.15 billion. Third-quarter organic sales growth is forecast at approximately 3%, with adjusted EPS of about $0.89. The company’s outlook includes approximately $30 million in raw-material, transportation and other cost pressures related to the conflict in the Middle East, assuming crude oil prices of about $90 per barrel. McChesney said Church & Dwight expects to fully mitigate that pressure during 2026 through increased productivity. The company also expects about $15 million in phase II tariff refund benefits during the second half, which it plans to invest primarily in consumer-facing business activities. Dierker said the company would consider pricing if elevated inflation persists for longer than expected, but said Church & Dwight has so far relied on productivity and trade and promotional optimization. “So far, we’re winning,” he said, citing expected gross-margin expansion. Church & Dwight Co, Inc is a U.S.-based consumer products company best known for its Arm & Hammer baking soda business. Founded in 1846 with the manufacture and marketing of sodium bicarbonate, the company has grown into a diversified maker and marketer of household, personal care and specialty products. Church & Dwight is publicly traded on the New York Stock Exchange under the ticker CHD and is headquartered in Ewing, New Jersey. The company's portfolio spans a range of categories including household cleaning and laundry, oral care, personal care, sexual wellness and health & wellness. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Church & Dwight Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Church & Dwight (CHD) came out with quarterly earnings of $0.89 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.94 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this maker of household and personal products would post earnings of $0.93 per share when it actually produced earnings of $0.95, delivering a surprise of +2.15%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Church & Dwight, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $1.53 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.79%. This compares to year-ago revenues of $1.51 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Church & Dwight shares have added about 16.5% since the beginning of the year versus the S&P 500's gain of 8.7%. While Church & Dwight has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Church & Dwight was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.92 on $1.57 billion in revenues for the coming quarter and $3.74 on $6.18 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Kenvue (KVUE), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This consumer health company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +10.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Kenvue's revenues are expected to be $3.99 billion, up 3.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report Kenvue Inc. (KVUE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research