Church & Dwight Co.: Increasingly Difficult To Justify Valuation Premium

  • I maintain a hold rating on Church & Dwight Co. due to weak domestic performance, retailer destocking, and new tariff headwinds impacting growth prospects. CHD's 1Q25 results showed a 2.4% decline in net sales and a 1.2% decrease in organic sales, driven by a 1.4% volume drop. The deteriorating US consumer environment and retailer inventory reductions are significant headwinds, with no expected recovery in the near term.