I have a perfect record on not crying during Maxi pad commercials, but there was a close call during the 2015 Super Bowl. In “Like a Girl,” sponsored by Always, young men and women were asked to show how girls throw, run, and fight, so they giggled through sissy pantomimes. Then small girls were asked the same thing. They moved with the wholeheartedness of champions.
I had to fake-cough and excuse myself for a beer.
The Always brand is part of Procter & Gamble, which makes it surprising that another one of its brands, Gillette, left many viewers bristling with what became known as its “toxic masculinity” ad released just ahead of this year’s Super Bowl. “We Believe” spent nearly two minutes scolding men for treating women badly. The problem is that most men are decent, and decent men don’t like being lumped in with the rest. The Always ad inspired. The Gillette one made me want to grow a beard.
That raises the question of whether Gillette’s financial results are suffering because of its toxic-masculinity misfire. On Tuesday, Procter & Gamble (PG) beat earnings and revenue forecasts, but the stock fell 3% on a day the S&P; 500 closed at a new high.
The good news is that sales grew 5% organically—that is, without help from acquisitions or currency exchange—whereas the Street was looking for 3.7%. Products for skin, fabrics, and home led the way. But sales of grooming products, including Gillette, slipped 1%, continuing a long string of declines. Margins disappointed. The upside earnings surprise came from non-operating items, like a tax-rate change.
Grooming products are 9% of P&G;’s revenue. During its last earnings call in January, the company said its Gillette ad hadn’t negatively affected sales, and touted “unprecedented levels of both media coverage and consumer engagement.” That I can believe. When Edgewell Personal Care (EPC), maker of Schick razors, reports quarterly financial results in May, investors will get a better idea of whether Gillette’s weakness is specific to the brand.
It’s probably not. Last quarter, Edgewell reported declines in wet-shave products. Big razor brands have been struggling with the casualization of workplaces, which means men are growing more scruff, and with competition from the likes of Dollar Shave Club and Harry’s. Unilever bought Dollar Shave in 2016. Gillette is pushing its own online razor subscriptions.
The days of $5 razor cartridges are fading. Amazon recently listed an eight-pack of Gillette Fusion 5 ProShield cartridges for $23.49, or close to $3 a cartridge. Online clubs still have plenty of room to undercut prices like that, although Gillette says one of its cartridges can last up to a month.
Since Gillette has recently begun offering me free ethics advice, here are some unsolicited thoughts on how to save on a shave.
Whisker-cutting technology peaked in 1904 when King Camp Gillette secured a patent for the double-edge safety razor. No gimmicky strips, or rows of blades, or batteries. Today, Amazon will sell you 100 double-edge blades for $5 to $10. Pop in a fresh blade after a week of shaving. A decent chrome handle is $20 and a stand is $15. Those last roughly forever. Amortized over five years, they bring your yearly shaving cost to around $10. And it’s a high-quality shave, especially when you throw in an apothecary cup for about $15 and discs of good shaving soap for $3 apiece. Each of those can last months. They make the thought of foams and gels about as appealing as shaving with silly string.
Don’t fall for the $150 shaving brushes. Look for barber-shop brands. Hang them bristles-down on your shaving stand. You can get years out of a good $15 brush.
This being an investment column, here’s one last recommendation: Use your shave savings to buy a stock that’s wildly inappropriate for your risk tolerance. If it doesn’t pan out, there’s always a tax loss. That’s more than the big razor brands will leave you with.
Write to Jack Hough at jack.hough@barrons.com
