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Colgate-Palmolive (CL) Earnings on Deck: What to Watch
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Colgate cut its full-year gross margin guidance as a result.
The company kept its sales and EPS guidance intact: net sales up 2% to 6%, organic sales up 1% to 4%.
If crude stays elevated, the margin guidance cut from May won’t be the last one.
A big chunk of last quarter’s 8.4% sales growth came from currency, not demand.
Colgate chose to protect price over volume, and volume suffered.