Financial Data and Key Metrics Changes - Organic sales grew by 3.4%, exceeding the outlook of 1% to 2% [3][12] - Adjusted EPS was $0.81, which was $0.09 higher than the expected $0.72 [3][12] - Adjusted gross margin increased by 10 basis points to 45.1%, also exceeding expectations [12][13] - Reported revenue increased by 5% [12] Business Line Data and Key Metrics Changes - U.S. consumer business organic sales increased by 2.3%, with volume growth of 3.7% [4] - Touchland, the newly acquired brand, experienced double-digit growth in Q3, exceeding initial expectations [3][4] - ARM & HAMMER laundry detergent consumption grew by 1.9%, while the category remained flat [5] - THERABREATH mouthwash consumption grew by 17%, capturing a 21.8% market share [6] - International business delivered sales growth of 8.4%, with organic growth of 7.7% [9] Market Data and Key Metrics Changes - The overall market for the company's categories is growing at around 2% [2] - The international segment showed broad-based growth across many markets, particularly in Argentina [9][33] - The vitamin business is undergoing a strategic review due to declining sales [9] Company Strategy and Development Direction - The company is focused on maintaining a balanced mix of value and premium offerings to navigate the current economic environment [11] - There is an ongoing strategic review of the vitamin business, including potential divestitures and partnerships [9][10] - The company plans to invest more in marketing, expecting it to exceed 11% of net sales [10][15] Management's Comments on Operating Environment and Future Outlook - The macro environment remains volatile, with mixed consumer sentiment and high borrowing costs affecting discretionary spending [2] - Management expressed optimism about the growth potential of Touchland and the overall strength of their brands [3][11] - The company expects full-year adjusted EPS growth for 2025 to be $3.49, slightly higher than previous guidance [10][15] Other Important Information - The company repurchased $300 million of shares in Q3, totaling $600 million year-to-date [14] - Cash flow from operations increased by 19.6% to $435.5 million [14] Q&A Session Summary Question: Touchland's contribution to 2026 and vitamin business impact - Management confirmed Touchland is performing better than expected and will help offset potential losses from the vitamin business [21][23] Question: Competitive environment and promotional activity - Management noted that promotional spending in laundry was lower year-over-year, indicating a shift towards value [24][26] Question: International market momentum - Management reported strong excitement and growth potential in international markets, particularly in Argentina [33] Question: Share buybacks versus M&A priorities - Management emphasized a focus on M&A while remaining opportunistic with share buybacks [34] Question: Promotional environment and pricing strategy - Management clarified that negative price mix was influenced by promotional actions in the vitamin business and adjustments in pricing for BATISTE [38][39] Question: Touchland's performance across channels - Touchland is performing well primarily through Sephora, Ulta, and Amazon, with plans for further expansion [41][42] Question: Retailer inventory levels and future growth - Management indicated stable inventory levels in Q3 and expects balanced growth moving forward [77] Question: Commodity outlook and tariff guidance - Management reported significant progress in reducing tariff costs and expects a normal commodity inflation environment [79][80]

Financial Data and Key Metrics Changes - Organic sales grew by 0.1%, exceeding the outlook of -2% to flat [4][22] - Adjusted EPS was $0.94, which was $0.09 higher than the $0.85 outlook [5][22] - Adjusted gross margin decreased by 40 basis points to 45% [4][22] - Reported revenue was down 0.3% [22] Business Line Data and Key Metrics Changes - U.S. Consumer business organic sales declined by 1%, with volume growth offset by negative price mix [11] - ARM and HAMMER liquid laundry detergent consumption grew by 3.2%, outpacing the category growth of 1.3% [12] - ARM and HAMMER Litter consumption grew by 3.4%, while the category was up 4.1% [13] - TheraBreath consumption grew by 22.5%, despite the mouthwash category being down [14] - HERO outpaced the acne category with consumption growth of 11.4% compared to 1.5% category growth [15] - International business delivered sales growth of 5.3%, with organic growth of 4.8% [17] Market Data and Key Metrics Changes - Online sales as a percentage of global sales reached 23% [7] - Category consumption for the largest categories finished around 2.5% in Q2 [5] - Consumer confidence levels have started to recover after hitting a twelve-year low [6] Company Strategy and Development Direction - The company is focused on a balanced portfolio of value and premium products, with a strong emphasis on innovation [6][7] - Strategic actions include exiting the FLAWLESS, Spin Brush, and WATERPIK showerhead businesses [8] - The company is undertaking a strategic review of its vitamin business, exploring options for divestiture or joint ventures [10][36] Management's Comments on Operating Environment and Future Outlook - The macro environment remains volatile and uncertain, but the company is confident in achieving its full-year organic outlook of 0% to 2% [6][19] - Management noted that category consumption is looking better than three months ago, with brands gaining both dollar and volume share [19][20] - The company expects continued innovation to drive growth in the back half of the year [19][68] Other Important Information - The company closed the acquisition of Touchland, which is experiencing strong growth [7][49] - Cash from operating activities for the first six months was $416.5 million, a decrease of $83 million from last year [25] - The company executed a $300 million share repurchase [25] Q&A Session Summary Question: Can you provide context on the strategic review of the vitamin business? - Management outlined three options: divestiture, joint venture, or restructuring the business for profitability [34][36] Question: What is driving the good consumption trends in the laundry business? - The company is seeing market share performance due to effective pricing and sizing strategies [39][40] Question: Can you quantify the impact of retailer destocking? - The destocking was around a 100 basis point drag in Q2, down from 300 basis points in Q1 [44][45] Question: What are the priorities for the Touchland business post-acquisition? - Touchland is focused on driving category growth and expanding household penetration [49][50] Question: How does the company view the promotional environment? - The promotional landscape is mixed, with litter promotions spiking while laundry promotions remain consistent [82][85] Question: What is the outlook for gross margins? - Gross margins are expected to contract by 60 basis points due to tariffs and inflation, but productivity efforts are ongoing [27][89]

Financial Data and Key Metrics Changes - Organic sales grew by 0.1%, exceeding the outlook of -2% to flat [4][23] - Adjusted EPS was $0.94, which was $0.09 higher than the $0.85 outlook [5][23] - Adjusted gross margin decreased by 40 basis points to 45% [4][23] - Reported revenue was down 0.3% [23] Business Line Data and Key Metrics Changes - U.S. Consumer business organic sales declined by 1%, with volume growth offset by negative price mix [11] - ARM and HAMMER liquid laundry detergent consumption grew by 3.2%, while the category grew by 1.3% [12] - TheraBreath consumption grew by 22.5%, maintaining a 21% share in the mouthwash category [14] - International business delivered sales growth of 5.3%, with organic sales increasing by 4.8% [17] Market Data and Key Metrics Changes - Category consumption for the largest categories finished around 2.5% in Q2 [6] - Online sales as a percentage of global sales reached 23% [7] - The gummy vitamin category grew almost 4%, marking the third consecutive quarter of growth [10] Company Strategy and Development Direction - The company is focused on a balanced portfolio of value and premium products, emphasizing innovation [6][8] - Strategic actions include exiting the FLAWLESS, Spin Brush, and WATERPIK showerhead businesses [8] - The company is undertaking a strategic review of its vitamin business, exploring divestiture options and potential partnerships [10][122] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence has started to recover after hitting a twelve-year low [6] - The macro environment remains volatile, with uncertainty around the U.S. Consumer and global economy [18] - The full-year organic growth outlook remains at 0% to 2%, reflecting a balanced view of the macro environment [27] Other Important Information - The company closed the acquisition of Touchland, which is the fastest-growing brand in the hand sanitizer category in the U.S. [7] - Cash from operating activities for the first six months was $416.5 million, a decrease of $83 million compared to last year [26] - The company executed a $300 million share repurchase through an accelerated share repurchase program [26] Q&A Session Summary Question: Can you provide context on the strategic review of the vitamin business? - Management outlined three options: divestiture, joint venture, or shrinking the business for profitability [38][122] Question: What is driving the good consumption trends in the laundry business? - The company highlighted effective pricing strategies and consumer trading up to larger sizes [44] Question: Can you quantify the impact of retailer destocking? - Management estimated a 100 basis point drag in Q2, down from 300 basis points in Q1 [49] Question: What are the priorities for the Touchland business post-acquisition? - Focus on driving category growth, increasing household penetration, and launching new products [52][54] Question: How does the company view the promotional environment? - The promotional landscape is mixed, with litter category promotions spiking above historical averages while laundry promotions remain consistent [88] Question: What is the outlook for gross margins? - Gross margin is expected to contract by 60 basis points due to elevated input costs and tariffs [28][92]