Proctor and Gamble devalued (“write down”) it’s Gillette brand by 8 billion dollars, after suffering $5.24 billion in losses last quarter. Write downs show that an asset is impaired and worth less than it’s book value. Estimates previously placed Gillette’s value at around $54 billion.
To put the write down in perspective, the decrease in value of Gillette as a brand is greater than their sales last year ($6.2 billion).
Despite the growing number of competitors in the shaving market, P&G blame the losses on fewer men shaving, etc. Any excuse goes when you don’t have the courage to admit your advertising is a disaster.