Latest news with #Church&Dwight
Yahoo
4 days ago
- Business
- Yahoo
RBC upgrades Church & Dwight given conservative guidance and Touchland deal
-- RBC Capital Markets upgraded Church & Dwight (NYSE:CHD) to Outperform from Sector Perform and raised its price target to $114 from $100, saying recent underperformance creates an attractive entry point and expressing renewed confidence following meetings with management. The stock is down 6.3% year-to-date and has lagged the consumer staples ETF by over 10 percentage points. RBC said the recent pullback, driven by soft first-quarter results and macro concerns, has likely run its course. Church & Dwight's guidance adequately reflects the current challenges, including destocking, slower category growth, and tariff impacts, according to analysts. The firm added that recent consumption trends have stabilized, with scanner data showing modest gains in recent weeks. CHD expects U.S. sales, which account for about 80% of revenue, to decline slightly in 2024, with a modest recovery in the second half. Gross tariff exposure was pegged at $190 million, though the net impact is expected to be lower due to easing tariff rates and internal efficiencies. RBC also expressed optimism about the company's acquisition of Touchland, a fast-growing hand sanitizer brand. The $130 million business is expected to deliver double-digit growth and become accretive to earnings by 2026. Touchland, which has gained popularity among younger consumers, is seen as a strategic fit alongside recent successful acquisitions like Hero and TheraBreath. RBC expects its distribution through premium channels like Sephora and Amazon (NASDAQ:AMZN) to drive further growth. The firm also noted that Church & Dwight gained market share in 9 of its 14 major brands in Q1, with volume growth across 80% of the portfolio, a rare feat in the current environment. RBC raised its 2025-26 earnings estimate and said CHD's operating margin outlook is now tracking toward the upper end of its long-term target. Related articles RBC upgrades Church & Dwight given conservative guidance and Touchland deal Western Union growth constrained due to U.S. immigration policy: Oppenheimer Jefferies upgrades Rollins on sales hiring surge, sees growth ahead
CNBC
5 days ago
- Business
- CNBC
This consumer products giant is a buy after a recent pullback, RBC says
RBC Capital Markets thinks shares of Church & Dwight could see a rebound as tariff and consumer woes appear to have eased in recent weeks. The company also has a new growth engine with its recent acquisition, according to the firm. Analyst Nik Modi upgraded the consumer products company to outperform from sector perform and lifted his price target by $14 to $114. His new target suggests that the stock can jump about 16% from its latest close. Church & Dwight, which owns brands including Arm & Hammer and Nair, declined 7% on May 1 after the company issued lackluster second-quarter earnings guidance. Year to date, shares have lost 6%. But Modi believes the stock is now trading at a "good entry point" after this pullback, given it has also underperformed the Consumer Staples Select Sector SPDR Fund (XLP) in 2025. "CHD shares have underperformed following a soft Q1 print impacted by destocking, slower category growth, and the impact of tariffs," Modi said. But "after spending time with Church & Dwight management (CEO/ new CFO), we have renewed confidence that the current guide adequately reflects the challenges of the current environment." The analyst is also confident that Church & Dwight will continue to gain market share across most of its portfolio for the rest of the year, highlighting that the company's year-over-year volume share in laundry detergent, mouthwash and skin care has increased year to date. CHD 1Y mountain Church & Dwight stock performance over the past year. Additionally, Modi is optimistic that Church & Dwight's acquisition of hand sanitizer brand Touchland will usher in greater distribution opportunities as well as potential opportunity to drive greater revenue synergy with Sephora. "We are also bullish on the acquisition of Touchland given its product efficacy, differentiation, distribution opportunities and loyal consumer base," he said in a note to clients. "We see this acquisition as more akin to recent acquisitions Hero and TheraBreath and less like acquisitions like Flawless or Vitafusion." Analysts in general aren't fully on board with Church & Dwight. Of the 24 analysts that cover the name, only eight rate it a strong buy or buy, while 11 have a hold rating. Another five rate it as underperform or sell, per LSEG.
Yahoo
20-05-2025
- Business
- Yahoo
1 Safe-and-Steady Stock on Our Buy List and 2 to Ignore
Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies. Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo. Rolling One-Year Beta: -0.07 Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE:CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams. Why Are We Cautious About CHD? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Demand will likely fall over the next 12 months as Wall Street expects flat revenue Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4.9 percentage points Church & Dwight is trading at $95.50 per share, or 25.5x forward P/E. Read our free research report to see why you should think twice about including CHD in your portfolio, it's free. Rolling One-Year Beta: 0.72 Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE:FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms. Why Is FIGS Not Exciting? Demand for its offerings was relatively low as its number of active customers has underwhelmed Incremental sales over the last five years were much less profitable as its earnings per share fell by 26.9% annually while its revenue grew Negative returns on capital show that some of its growth strategies have backfired At $4.43 per share, Figs trades at 61x forward P/E. Check out our free in-depth research report to learn more about why FIGS doesn't pass our bar. Rolling One-Year Beta: 0.61 Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ:UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments. Why Do We Love UTHR? Impressive 22.9% annual revenue growth over the last two years indicates it's winning market share this cycle Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends Returns on capital are climbing as management makes more lucrative bets United Therapeutics's stock price of $303.40 implies a valuation ratio of 10.4x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
Forbes
19-05-2025
- Business
- Forbes
How Touchland Turned Into An $880 Million Hand Sanitizer Brand
Touchland's innovative formats and scents helped the brand become a top-selling brand Church & Dwight announced it is acquiring personal care brand Touchland for $7oo million in cash and restricted stock at closing, and up to $180 million in earn-out depending on net sales for 2025, valuing the brand at $880 million. The brand, founded by Andrea Lisbona, first launched in Spain before expanding to the U.S. in 2018. It is now the fastest-growing hand sanitizer brand in the country and the second largest in the category behind Purell, totalling $130 million of net sales for the past twelve months through March 31, 2025. Turning a mundane product into a pleasant sensory accessory, Touchland is a great example of how any category can be disrupted and reinvented. What small, disruptor brands often achieve very well is that they look outside their core product's category for inspiration, leading to innovative formats, route to market, brand positioning or marketing strategies. Touchland instantly stood out with its unique format: a sleek, thin, square bottle that contrasted heavily with the hand sanitizers consumers are used to. The product uses smart technology and a design that lets consumers know easily when it's time for a refill or a change of batteries. On top of a new type of packaging, founder Andrea Lisbona also sought to innovate on formula, combining both product performance and benefits by blending high-quality, moisturizing natural ingredients along with Denatured Ethyl Alcohol in order to kill germs without leaving hands dry or sticky. The brand bet on scent innovation to differentiate itself, developing a series of scents, from Vanilla Cinnamon to Aloe Vera and Velvet Peach. With sixteen different scents, it clearly invested in providing a sensorial experience that fit an array of consumers' scent preferences, positioning itself as a skincare-forward hand sanitizer brand, earning the credentials of a beauty or skincare brand rather than a monotonous personal care one. 'Personal care usually sells through fear. Our goal is to do the opposite and empower people to live to the fullest and create solutions that people are excited to carry with them,' said Lisbona to Glossy a while back. Indeed, hand sanitizers are typically seen as functional products only, often associated to sterile or clinical environments, especially due to their emphasis on alcohol content and germ-killing claims. Purell and other labels have never done much in terms of branding, marketing or brand activations as they took their products for what they were: hand sanitizers. Touchland's founder had an entirely different mindset and approach to the category. The brand took a dull, ordinary product and turned it into a lifestyle accessory in no time, and this vision is what the brand's innovation is founded upon: 'Touchland was born from a bold vision: to reinvent overlooked daily essentials into extraordinary moments of delight. We believe every aspect of our everyday essentials should be exciting; little bursts of joy that can delight our senses and remind us of the magic in the mundane', reads the brand's website. The concept took off quite quickly, boosted by the timely relevance of Covid in 2020. Priced at $10, the premium hand mists started selling through its direct-to-consumer website as well as at Ulta, Urban Outfitters, Amazon and Revolve. It is now present across 2,500 locations in the U.S., including Sephora and Target, and recorded a +203% YoY sales increase between 2023 and 2022, proving its relevance beyond the pandemic. Inspired to reinvent a category by turning the mundane into fun and enjoyment, Andrea Lisbona also approached her brand's positioning and marketing from a highly different angle compared to its competitors, heavily contributing to gaining considerable market share. To drive appeal and elevate Touchland as a lifestyle brand, she turned to special editions and brand collaborations. From Hello Kitty to Smiley, the brand launched unique hand sanitizers and matching mist cases, which became instantly popular and amassed a 2,000 people waitlist in the case of the Smiley collaboration. In fact, every new product collaboration leads to a waitlist, with the next one being the special edition Disney set, which includes the brand's award-winning Wild Watermelon scent and Mickey Mouse Mist Case. Disney x Touchland brand collab launching on May 19th Another growth driver is the brand's popularity on social media. Since its launch through to its kickstarter campaign, Touchland has managed to build a strong, authentic online community, which continues to grow. Focused mostly on organic growth, the brand has expanded its reach thanks to being featured by celebrities like Kylie Jenner or Blackpink as well as micro influencers, with a following of beauty, skincare and lifestyle fans, who are gifted products and share if they like them, helping relay the brand's authenticity and credibility. Its social media accounts reflect the brand's intent to be a true lifestyle brand embedded into the beauty sphere, positioning its products as everyday accessories. It leverages its Instagram account to elevate the brand and share user-generated content, while its TikTok channel is intended to show behind-the scenes and ways to interact with the products, highlighting the sensorial elements of the brand and leveraging short video formats meant to go viral. Using social media as a core strategic channel is uncommon for brands in the personal care space, but it's what has helped the brand gain so much traction. It probably would not have been able to achieve this without its innovative design and formulas, which fit very well the aesthetic and lifestyle features of both Instagram and Tiktok. Andrea Lisbona and her team have managed to completely reinvent an overlooked category, transforming hand sanitizer into a desirable lifestyle and beauty product. Touchland's success shows how far innovative packaging and sensorial attributes can go in building consumer demand and attractivity, while also demonstrating the impact of challenging conventional approaches to category growth. By blending personal care with skincare attributes (and earny beauty awards along the way), Touchland has redefined how consumers interact with a traditionally functional, mundane product. Focusing on personal care essentials rather than short-lived beauty trends, the brand will continue to focus on cementing its position as a category disruptor while also expanding into new markets, leveraging the scale and expertise of its new owner to further grow its reach.
Yahoo
15-05-2025
- Business
- Yahoo
CHD Q1 Earnings Call: Portfolio Pruning and Tariff Actions Amid Consumer Weakness
Household products company Church & Dwight (NYSE:CHD) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 2.4% year on year to $1.47 billion. On the other hand, next quarter's outlook exceeded expectations with revenue guided to $1.5 billion at the midpoint, or 1.3% above analysts' estimates. Its non-GAAP profit of $0.91 per share was 1.4% above analysts' consensus estimates. Is now the time to buy CHD? Find out in our full research report (it's free). Revenue: $1.47 billion vs analyst estimates of $1.51 billion (2.4% year-on-year decline, 2.9% miss) Adjusted EPS: $0.91 vs analyst estimates of $0.90 (1.4% beat) Adjusted EBITDA: $363.4 million vs analyst estimates of $361.7 million (24.8% margin, in line) Revenue Guidance for Q2 CY2025 is $1.5 billion at the midpoint, above analyst estimates of $1.48 billion Adjusted EPS guidance for Q2 CY2025 is $0.85 at the midpoint, below analyst estimates of $0.95 Operating Margin: 20.1%, in line with the same quarter last year Free Cash Flow Margin: 11.5%, down from 14.4% in the same quarter last year Organic Revenue fell 1.2% year on year (5.2% in the same quarter last year) Market Capitalization: $22.94 billion Church & Dwight's first quarter performance was driven by a combination of ongoing retailer destocking in the U.S., muted consumer demand, and specific category underperformance, most notably in gummy vitamins. Management attributed the organic sales decline to a 300 basis point drag from retailer inventory reductions, while noting share gains in core brands like ARM & HAMMER and THERABREATH. CEO Rick Dierker pointed out, '80% plus of our business grew volume share in the quarter,' signaling resilience in key product lines despite the challenging environment. Looking ahead, the company is focusing on mitigating tariff exposure and executing strategic portfolio changes, including the divestiture or exit of lower-margin businesses. Management's guidance for the next quarter reflects continued caution regarding U.S. category growth and a lack of near-term recovery catalysts. CFO Lee McChesney explained that, 'full year organic revenue outlook is now 0% to 2%, driven by a weaker U.S. consumer,' and that EPS growth will be limited by both lower sales expectations and ongoing tariff headwinds. First quarter results reflected both external pressures and internal actions, with management emphasizing portfolio streamlining, category performance, and decisive tariff mitigation. The revenue shortfall versus consensus was primarily driven by U.S. retailer destocking and softer consumer demand, while profitability was supported by cost controls and selective pricing. Portfolio streamlining: Management announced plans to exit or sell the Flawless, Spinbrush, and Waterpik showerhead businesses. These brands represent about 2% of total sales and have below-average profitability. The move is expected to sharpen focus on core brands and materially reduce tariff exposure. Tariff mitigation actions: Church & Dwight projected a gross 12-month tariff exposure of $190 million but expects to reduce this by about 80% through portfolio changes and supply chain adjustments, such as moving Waterpik flosser production out of China for U.S. markets. Brand share gains: Despite overall sales declines, the company reported share growth in nine of its 14 major brands, with ARM & HAMMER laundry and litter as well as THERABREATH and HERO delivering consumption growth above their respective categories. Category-specific challenges: The gummy vitamin segment remained a significant drag, with consumption down 19%, despite overall category growth. Management is introducing new products, reformulations, and enhanced marketing to address the decline, with progress expected from May onward. International and SPD growth: The international segment delivered 5.8% organic growth, and Specialty Products Division (SPD) posted a 3.2% organic gain, partially offsetting U.S. weakness. Growth was driven by higher volumes and continued brand momentum abroad. Management's outlook for the coming quarters is anchored in category trends, portfolio focus, and ongoing cost discipline, while acknowledging that consumer and retailer behavior remain unpredictable. Tariff and supply chain actions: The company expects its efforts to reduce tariff exposure—through both divestitures and sourcing changes—to limit gross margin pressure, but ongoing commodity cost inflation could remain a headwind. Innovation and brand investment: Management is relying on new product launches and continued marketing investment, particularly in underpenetrated brands like HERO and THERABREATH, to drive household penetration and share gains. U.S. consumer and retailer trends: Persistent weakness in U.S. category growth and retailer inventory reductions are expected to weigh on near-term sales, with management stating that no recovery in destocking is assumed. Selective pricing and promotional activity will be closely managed to balance share gains with margin protection. Rupesh Parikh (Oppenheimer): Asked for updated segment expectations and the impact of promotional activity; management indicated international met expectations and U.S. sales will likely remain under pressure, with promotional intensity stable for now. Chris Carey (Wells Fargo): Sought clarity on the magnitude and timing of tariff impacts; management detailed that the gross $190 million exposure should fall to about $40 million after mitigation, with most effects captured in 2025. Andrea Teixeira (JPMorgan): Queried the sustainability of HERO's growth and promotional depth; management noted HERO's double-digit consumption growth and ongoing distribution expansion, while promotional depth remains transitory. Steve Powers (Deutsche Bank): Probed the assumptions behind the implied back-half recovery in organic growth; management cited distribution gains, incremental innovation, and continued marketing but acknowledged no improvement in consumer demand is assumed. Olivia Tong (Raymond James): Asked about pricing strategy and brand penetration; management said price increases will be limited and targeted, while marketing and innovation will drive penetration in brands like HERO and THERABREATH. In the quarters ahead, the StockStory team will monitor (1) the pace and impact of portfolio pruning, specifically the exit of lower-margin brands and associated tariff mitigation, (2) effectiveness of new product introductions and reformulated offerings, particularly in the gummy vitamin and acne care segments, and (3) U.S. category consumption trends and whether retailer destocking stabilizes. Execution on international growth initiatives and further supply chain adaptation will also be central to assessing progress. Church & Dwight currently trades at a forward P/E ratio of 24.7×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
