Church & Dwight Sharpens Focus with Brand Divestiture

The consumer goods giant Church & Dwight is streamlining its brand portfolio through a significant divestment. This strategic pivot, aimed at bolstering core business segments, will incur a substantial one-time charge and arrives as the company's shares continue to face pronounced market pressure despite recent solid quarterly performance.

On December 9, 2025, Church & Dwight entered into a definitive agreement to sell its vitamin brands, VitaFusion and L'il Critters, to Piping Rock Health Products. The transaction includes the associated intellectual property, licenses, and related manufacturing and distribution assets. This move concludes a strategic review of the company’s Vitamin, Mineral, and Supplement (VMS) segment.

Financially, the divested brands represent less than 5% of Church & Dwight’s projected total net sales for 2025. Management anticipates recording a one-time, after-tax charge of between $40 million and $45 million in the fourth quarter as a direct result of this sale. The deal is expected to close before the end of the current year.

Concentrating on Core "Power Brands"

Chief Executive Officer Rick Dierker framed the divestiture as a deliberate step to enhance portfolio strength. "This sale immediately strengthens our portfolio and allows us to further concentrate our efforts on the remaining Church & Dwight Power Brands that drive our market-leading performance and forward-looking growth initiatives," he stated. The objective is clear: to reallocate resources and managerial focus toward the company's most profitable and dominant product lines.

Should investors sell immediately? Or is it worth buying Church, Dwight?

Equity Performance Lags Broader Sector

Notwithstanding this strategic repositioning and robust recent earnings, Church & Dwight's stock has exhibited notable weakness for several months. Since reaching an all-time high in March, the share price has eroded significantly, currently trading approximately 30% below that peak. Year-to-date, the equity has declined more than 29%.

The technical picture remains challenging. The stock has consistently traded below its 200-day moving average since April, signaling a sustained downtrend. Its performance also continues to trail the broader consumer staples sector, as represented by the Consumer Staples Select Sector SPDR Fund (XLP), which has seen only marginal losses for the year.

Mixed Analyst Sentiment Amid Price Weakness

Market analyst opinions are divided, though a cautiously optimistic bias persists despite the stock's retreat. The consensus average price target stands near $101, suggesting a potential upside of over 20% from current levels. However, a clear divergence exists among major firms. While Deutsche Bank reaffirmed a "Strong Buy" rating on December 10, Barclays maintains a "Sell" recommendation and recently lowered its price target to $82.

The company's next major test will be the release of its fourth-quarter 2025 results, for which it has provided an adjusted earnings per share forecast of approximately $0.83. This upcoming report will offer initial evidence on whether the strategic refocusing is beginning to yield tangible benefits.