Hi, Gillette – it's a painful nickname!
The 118-year-old razor-maker's parent company, Procter & Gamble, revealed Tuesday that it will take a $ 8 billion write-down on the men's grooming brand.
One big problem according to P&G: Millennial men don't shave as often as dads do.
"Lower shaving rates have reduced the size of the developed knife and razor market," CFO Jon Moeller said Tuesday in a conversation with analysts, citing markets in the US and Europe.
In addition to beards and shadows from five in the morning, the strong dollar has dropped sales by reducing revenues from foreign markets.
To make matters worse, analysts say Gillette has faced stiff competition from upstart brands such as Dollar Shave Club, now owned by rival Unilever, and Harry's.
Moeller said that younger rivals had "much less impact" on business than hirsute millennials. Nevertheless, "new competitors have come at prices below the average of the category," Moeller said.
On Tuesday, Harry's website offered eight knives for $ 1
Wall Street largely overlooked the Gillette write-down, sending P&G shares to a climax when the conglomerate reported a strong quarter of organic sales.
P&G rose 3.8 percent Tuesday, to $ 120.41.