Procter & Gamble reported Tuesday that it wrote down the value of its Gillette brand by $8 billion.The consumer products giant has also faced increased competition from disruptors like Dollar Shave Club and Harry's.'s write-down of its struggling Gillette brand, executives expressed confidence about the future of the shaving business.
"Grooming continues to be a very attractive business — organic sales up year-over-year," CFO Jon Moeller told analysts on the conference call. The consumer products giant gave two reasons for the write-down. First, the company said that currency devaluations since the carrying values were first established in 2005 played a significant role. Over the last decade, currency has hurt its global business.
P&G's second reason for the write-down is the market contraction of blades and razors, primarily in developed markets. In countries like the United States, growing beards is more popular, leading fewer men to buy razors. Gillette held a 52.8% market share of men's razors and blades in the U.S. last year, according to Euromonitor.
Clean shaven faces will come back in fashion, hopefully!