Procter & Gamble revealed its latest business challenge: facial hair.

The company, fresh off a recent corner-office shake-up and already facing a battle for market share in shampoo, said second-quarter earnings were marred by the growing preference of men for mustaches and beards, which drove down sales in its grooming segment.

But the company, a consumer giant in the United States, said that increasingly popular body-shaving by men had the potential to offset the loss of the facial-hair business.

“We can take advantage of that and plan to do that as well,” said Jon Moeller, the chief financial officer.

Mr. Moeller characterized the latest round of results as on par with expectations. But he cited three areas in need of improvement: skin care, where the company’s Oil of Olay line has lagged hopes; shampoo, where several campaigns around the Pantene line have underperformed in the face of discounting by a rival, Unilever; and, of course, grooming.