Olivia Tong

Linda reported inventory in line with expectations, full recovery of cyber-lost distribution, and stronger e-commerce retailer plans.

Linda: Won't pull back on brand support, #1 priority is value superiority. Evaluating pricing for FY27 but order of operations: superiority first, cost recovery second. Have toolbox to do both (margin transformation, AI efficiency, RGM, working media optimization). Innovation pipeline strong for next couple years. Glad specifically has long history of price up/down with resin, too early to call FY27.

Linda said managing this for years, dollar channel offset (smaller sizes) balances club (larger sizes). RGM + ERP data harmonization gives more real-time capability. Correspondingly seeing downward pressure on sizing from dollar, keeping overall price/mix manageable. Inventory levels largely where expected at retail, nothing material indicating destocking risk versus peers.

Linda said categories have been in 0-1% range for several quarters with stability. Essential categories have a floor, consumers need to clean, care for pets, take out trash. This quarter at flat (lower end). Watching consumer carefully but sees most likely scenario as continuation of 0-1%.

Linda said hard part done. One additional smaller implementation upcoming, expected to be of no consequence. Organization now focused on driving value from ERP and reinvigorating categories. Unlocks real-time insights, end-to-end supply chain visibility, faster reaction capability.

Linda said 60% consumer value superiority (above pre-pandemic). Cat Litter is the main gap needing improvement. Plans for new platforms and NRM in back half. Has financial flexibility via margin flywheel to invest if needed.

Luc said $80-90M general supply chain inflation plus $40M tariffs. Wide range acknowledges uncertainty. Strong margin transformation pipeline built over 2-3 years. ERP provides additional productivity source once stabilized. Generally feels good about offsetting current cost assumptions.

Linda said heavy goods (Kingsford, Litter) take more space, driving retailer focus there. On replenishment: purchase cycle is 90 days, haven't completed one full cycle since Feb weakness. Too early to predict timing but logical consumers return to normalized inventory levels.

Linda said Litter promo outlook unchanged, already embedded elevated levels. Heavier advertising in H2 to support innovation including new heavy-duty litter launch. Financial flexibility to respond to any competitive pressure.

Linda said retail inventories normalized. Kevin pointed to cost savings (240bps) and divestiture margin benefit (50-70bps) as structural drivers.

Rick cited CHD's decades-long track record of competing through innovation and the right price pack architecture and sizing rather than trade promotion.

CEO cited e-commerce transformation from 2% to 24% of consumer sales since 2015. Competitive advantage is speed, right pack sizes for each channel. Portfolio of #1/#2 brands post-realignment. ARM & HAMMER Baking Soda 10x has 4.9 review vs 4.5 category avg.

CFO said broad-based improvement globally, only pressure point was Middle East. CEO confirmed beat was volume-driven.

CEO cited ARM & HAMMER advertising halo effect as unique competitive advantage enabling value positioning with strong margins. Productivity muscle in household over-indexes on fabric/home care.

CFO confirmed no pull-forward timing benefit. CEO emphasized long-term laundry strategy: 15% share, 30% household penetration, innovation (Deep Clean) still at 70% of premium price.

CEO said trade-down is net positive but hasn't fully materialized yet. Value brands growing share while premium problem-solution brands (THERABREATH, HERO, Nair) also gaining.

CEO stated no further portfolio exits planned. Remaining brands have defined roles - some cash cows, some growth drivers. Happy with current portfolio composition.

CEO stated tariff mitigation has enabled avoiding price increases. Marketing at 11% of sales to drive household penetration for HERO (8.7%) and THERABREATH (10.5%).

CFO confirmed tariffs are the primary driver of gross margin guide change, with some incremental inflation. Productivity remains strong but not enough to offset.

Jejurikar detailed the retailer partnership shift across media, demand creation and supply chain and noted scale helps as the largest media spender, but set no year-end deliverable.

Andre expressed confidence that volume gains are durable because they are grounded in consumer insight and detailed brand-level diagnosis. Said hit rate on interventions is improving as the team iterates.

Andre confirmed reinvestment varies significantly by business, brand, country, retail, and SKU. Deferred specifics to July guidance, saying plans are being reviewed over the next 90 days.

Andre confident in productivity delivery with 2-3 year visibility plus restructuring; EPS progress toward algorithm depends on ability to stimulate top-line.

Andre quantified regional growth; said portfolio actions are on the fringes, core 10-category portfolio is settled with no transformational M&A planned.

Jon defended innovation-driven pricing history; Andre said Focus and Enterprise Markets should perform similarly on top and bottom line in aggregate.

Andre explained variance holding; pricing plans are category/brand specific, still in progress.

Andre said China recovery is a mix of both; investment pace is more moderate and focused on optimization.

Andre pointed to the 10-category portfolio balancing ups and downs and category-specific innovation driving penetration.

Noel drew parallels from Asia's recovery, go-to-market rebuild, premium innovation, online focus, as the playbook for North America.

Noel emphasized continued investment in thematic brand building over promotion, citing omni demand generation, social commerce, and agentic commerce as focus areas. Hill's advertising driving strong returns.

Wallace said CL won't reduce pricing due to FX benefit, citing brand strength and cost-driven justification. Sutula noted historical ability to price even in favorable FX years. Buy Canadian impact currently limited to Canada.

Sutula cited P&L flexibility and productivity offsets. SGPP designed for investment and savings, not just cost cutting. Wallace emphasized years of building P&L flexibility now being deployed.

Wallace cited good advertising, strong innovation pipeline, pricing flowing through, and modest category improvement. Sutula noted resource reallocation and supply chain optimization as part of program.

Wallace attributed US pressure to lower store traffic and conversion. LatAm fundamentals strong with Total relaunch driving share, solid innovation pipeline for H2. No fundamental LatAm concerns.

Wallace noted promotional environment constructive overall with isolated pockets in India and South Africa. LatAm pricing already announced. Argentina devaluation risk not in guidance.

CEO said there was no observed trade-down across age or income demographics, with spend rising across segments, and described Space NK's first year as a positive combination with cross-learnings on clienteling, loyalty and private label.

Chris focused on maximizing profit growth through both top-line and margin. Productivity goals fuel targeted high-ROI investments. Plans consistent with long-term algo of double-digit EPS compounding. Kecia emphasized low-to-lux model gives flexibility to flex with consumer and ability to pivot as needed.

Kecia explained prudent guidance given volatility ahead (weather, macro). Pleased with Black Friday/Cyber results and in-stocks. Confident in ability to sustain share gains long-term. Deferred FY2026 details to March.

Kecia highlighted both mass and prestige makeup growing for first time in a while. Newness balanced across portfolio driving broad engagement. Already working on great launches for next year.

Paula explained cautious H2 outlook reflects one quarter not making a trend and dynamic environment. Promo expected rational; pricing changes manageable with brand partners.

CFO said further margin comes from SG&A/employee cost with modest gross margin help, and cash priorities are debt paydown, funding CapEx and the dividend over M&A.

Stéphane focused on innovation speed as key differentiator. Plans to tailor innovation by retailer, price point, and consumer segment across all four categories. Did not share specific retailer feedback.

Tracey detailed Q2 cost pressures: China/TR deleverage on profitable areas, protected advertising for holiday, selling staff investments, Le Labo/Jo Malone store investments. PRGP benefits weighted to H2.