By Connor Hart
Market jitters are keeping consumers from stocking up on staples such as toothpaste and dish soap, and Colgate-Palmolive doesn't expect that hesitancy to ease anytime soon.
There are a lot of challenges facing the consumer-products industry right now, Chief Executive Noel Wallace said on a call with analysts Friday--the main one being that consumers are uncertain about where the economy is headed.
Ongoing volatility is prompting shoppers to delay restocking their pantries and pass on buying extra tubes of toothpaste when they see a promotion.
"Our anticipation is that trends will get a little better," Wallace said of the coming year. "But we're not assuming the U.S. will get significantly better, at least in the next couple of quarters."
To account for so many unknowns, Colgate issued a wider-than-normal outlook for the coming year, calling for sales to climb 2% to 6%, or 1% to 4% on an organic basis. Analysts surveyed by FactSet modeled sales of about $21 billion in 2026, or up 3% from last year.
Shares were recently up 4%, to $88.65. The stock has rallied 14% in the last month, though it is down 2.3% in the last year.
The range accounts for a variety of outcomes, according to finance chief Stan Sutula. Annual sales would likely come in at the low end of the range if current trends deteriorate. If conditions hold steady, sales will likely be at the middle of the range, and they could hit the high end if trends improve sooner than expected.
"But as we've outlined and as you've seen, there is significant uncertainty all around the world, and categories have stabilized but remain at lower levels," Sutula said.
Still, Colgate, which also makes Irish Spring soaps and Speed Stick deodorants, forecast momentum from last year to continue into 2026. The company said fourth-quarter sales rose 5.8% to $5.23 billion, ahead of Wall Street models for $5.12 billion, as higher prices offset mostly flat volumes. Organic sales increased 2.2%.
The results echoed Procter & Gamble, which last week said higher prices helped offset a decline in volumes during its latest quarter, and that it was facing a softer consumer market. Church & Dwight also on Friday reported growth in the recent quarter, as its personal-care business offset weakness in household products.
Wallace said Colgate stands to benefit from its new growth strategy, which will lean on artificial intelligence and automation to develop products faster, improve marketing for new and existing offerings, and respond more quickly to shifts in consumer demand. The company has also taken steps to streamline operations and reduce costs, allowing it to ramp investments in faster-growing emerging markets.
Despite its higher sales, Colgate swung to a loss in the recent quarter, hurt by a $794 million charge tied to its skin-health business. The company said the unit is facing lower-than-expected category growth rates and weaker-than-expected performance, particularly in China.
Stripping out the charge and other one-time costs, earnings were 95 cents a share, ahead of the 91 cents a share that analysts expected.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
January 30, 2026 11:33 ET (16:33 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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