Procter & Gamble (NYSE: PG) beat second-quarter results estimates on Wednesday, driven by growing demand for its household items such as Pantene shampoos and Tide detergents as product innovations across price tiers helped lure more U.S. customers.
Shares of the company, considered a bellwether for the consumer goods sector, rose nearly 3% in premarket trading.
P&G has doubled down investments on innovation and launched affordable products such Olay Melts and Tide Evo to draw in lower-income shoppers, following a drop in customer demand due to repeated price hikes.
The company has also tried to revamp its marketing and line-up of influencers on the fast-growing Chinese shopping app Douyin in recent months, which helped its Pantene shampoo lead growth in hair care on the platform, executives said in November.
P&G reported a 2% rise in overall organic volumes in the second quarter, while the average prices across its product categories remained flat.
The company has been able to gain market share in the U.S., which accounts for nearly half of P&G’s total sales, according to analysts, mainly benefiting from new launches such as Luvs Platinum Protection.
P&G has been selling its products across price points ranging from $5 to $60 in some categories.
The company has also started to see some concerns related to demand for beauty brand SK-II in China ease, following several quarters of sales declines due to rising anti-Japanese sentiment.
However, Procter & Gamble (NYSE: PG) maintained its annual forecasts as growth in China continues to lag previous records due to weak consumption trends.
The company’s second-quarter net sales rose to $21.88 billion from $21.44 billion a year earlier. Analysts had expected $21.54 billion, according to LSEG data.
It earned a profit of $1.88 per share, beating estimates of $1.86.
