Procter & Gamble (P&G) reported a surprising 0.6% drop in first-quarter net sales, totaling $21.74 billion, as announced on October 18, 2024. This marks the second consecutive quarterly sales decline for the company. Despite organic sales in North America growing by 4%, this figure is a decrease from the 7% growth seen a year earlier. The decline is attributed to price-conscious consumers increasingly shifting to cheaper brands amid ongoing economic uncertainty in both the U.S. and China. CFO Andre Schulten highlighted the impact of a prolonged property crisis and rising youth unemployment in China, which are significantly affecting demand for P&G's products. Although the adjusted profit per share reached $1.93, surpassing analysts' expectations of $1.90, the company's shares fell nearly 1% in premarket trading following the announcement. Analysts predict a volume drag from slowing demand in regions such as Latin America, China, and the Middle East. Additionally, P&G is facing calls for boycotts of its products in some Muslim-majority countries due to its perceived connections to Israel. Despite these challenges, P&G maintains its annual organic sales growth forecast of 3% to 5%, indicating a cautious optimism about future performance. The overall market sentiment reflects a growing concern over consumer behavior, as evidenced by the recent sales reports from other major retailers, including Walmart, which also highlighted shifts in consumer spending patterns. As the economic landscape continues to evolve, P&G's ability to adapt to changing consumer preferences will be crucial for its recovery and growth in the coming quarters. [f7a44e2b]