Fashion can be costly, just ask Gillette. The shaving giant recently revealed beards are costing it billions.
On the latest quarterly post-earnings call to analysts, the company released news its profits had dipped a whopping US$5.24 billion (A$7.72 billion) in the fourth quarter of the 2019 financial year.
The reason? The stylish rise of beards in recent years.
“Lower shaving frequency has reduced the size of the developed blades and razor’s market,” said Gillette’s parent company P&G chief financial officer Jon Moeller.
As well as dealing with more furry faces, Gillette is also now facing competition from subscription shaving services such as the Dollar Shave Club.
Despite Gillette taking a hit, P&G still recorded $US17.1 billion ($AU25.32bn) of sales in the same quarter.
However, P&G and Gillette are aware of the changing trends in male grooming and are responding accordingly.
Gillette earlier this year released a powerful campaign featuring a trans teen and his father which aimed to reposition the comapany’s famous ‘Best A Man Can Get’.