Shares of Colgate-Palmolive CL are trading lower after the company issued guidance showing expectations of a decline in gross profit margin for FY21.
The company announced on a non-GAAP basis, it now expects a decline in gross profit margin, increased advertising investment and earnings-per-share growth at the lower end of its mid to high-single-digit range.
The company also said it still expects net sales to rise 4%-7% for FY21, and expets organic sales to be up within its long-term targeted range of 3%-5%.
"We expect the difficult cost environment to continue in the back half of the year and we remain sharply focused on our funding the growth and revenue growth management initiatives," said Noel Wallace, Chairman, President and CEO.
Colgate-Palmolive is a global consumer product company that manfuactures shampoos, shower gels, deodorants and home care products.
Colgate-Palmolive's stock was trading about 4.8% at $79.51 per share on Friday. The stock has a 52-week high of $86.41 and a 52-week low of $74.14.
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