Reported sales growth was 10.6%.
Gross margin expanded by 220 basis points, and adjusted earnings per share was $0.77.
Organic sales grew 8.4%, driven by higher consumption, restocking of retailer inventories and lower couponing.
Our online sales increased by 75% in Q2 as all retailer.coms have grown.
We began the year targeting 9% online sales.
In Q1, 10% of our sales were online.
In Q2, it was 13%, and we expect second half online sales to be equally strong.
Year-to-date shipment and consumption patterns are back in balance for our brands in the 15 categories that we compete.
July consumption for the U.S. business is tracking to be over 10%, led by our gummy vitamin brands, OXICLEAN additives and baking soda.
1/3 of our July consumption growth is attributed to our gummy business.
In July, and I think this is important, only two of our 15 brands, that would be BATISTE and TROJAN, showed negative consumption.
In contrast, in the month of May, eight of our 15 key product lines showed negative consumption.
Consumption for May, June and July has been averaging up over 40%.
The laundry pantry loading appears to be absorbed as our consumption improved from being down low single digits in the quarter to up approximately 10% in July year-over-year.
Similarly, ARM & HAMMER litter improved from negative consumption in Q2 to up approximately 5% in July.
In the water flosser category, WATERPIK is starting to recover from the steep decline in April when consumption was down 55%.
The most recent surveys indicate that 95% of dental offices are now open, although most are at a reduced capacity.
In Q2, we launched a new ARM & HAMMER laundry detergent called CLEAN & SIMPLE, which has only six ingredients plus water and this compares to 15 to 30 ingredients for the typical liquid detergent, and has the cleaning power comparable to our best-selling consumer favorite, which is ARM & HAMMER with OXICLEAN.
ABSORBx is 15% lighter than our existing lightweight, and it's 55% lighter than our regular clumping litter.
We reinstated our earnings per share outlook with 13% growth, which is far above our evergreen target of 8% annual earnings per share growth.
You may recall that just last year, we had this exact same opportunity to invest, and our earnings per share was down 4% in Q4 2019 as a result.
Second quarter adjusted EPS, which excludes an acquisition-related earn-out adjustment, grew 35% to $0.77 compared to $0.57 in 2019.
Reported revenue was up 10.6%, reflecting a significant increase in consumer demand for our products due to COVID.
Organic sales were up 8.4%, driven by a volume increase of 4.9% and positive product mix and pricing of 3.5%.
Organic sales increased by 10.7% due to higher volume and positive price mix.
6% is consumption growth, reflecting strong, tracked and untracked in e-commerce growth, 1% from lower couponing, and then approximately 3.5% from improving retail and stock levels.
Consumer International delivered 0.6% organic growth due to positive price and product mix offset by lower volume.
For our SPD business, organic sales increased 3% due to higher volume, offset by lower pricing.
Our second quarter gross margin was 46.8%, a 220 basis point increase from a year ago due to a reduction in trade, couponing and improved productivity.
In terms of the gross margin bridge versus year ago, positive price and volume and mix contributed 220 basis points.
Productivity added 140 basis points, offset by higher manufacturing costs of 110 basis points which was driven by 110 basis points related to COVID supply chain costs and then improved commodity costs were offset by higher manufacturing costs.
Finally, a drag of 20 basis points from the prior year FLAWLESS accounting impact and a 10 basis point drag from FX is how we get to 220 up for the quarter.
Marketing was down $6.8 million year-over-year.
Marketing expense as a percentage of net sales decreased 180 basis points to 10.2%.
For SG&A, Q2 adjusted SG&A increased 30 basis points year-over-year, primarily due to higher incentive comp, intangible costs related to acquisitions and investments in R&D and IT.
And for net operating profit, the adjusted operating margin for the quarter was 21.5%.
Other expense all in was $14.7 million, a slight decline due to lower interest expense resulting from lower interest rates.
And for income tax, our effective rate for the quarter was 19.6% compared to 18.7% in 2019, an increase of 90 basis points, primarily driven by lower stock option exercises.
For the first six months of 2020, cash from operating activities increased 70% to $599 million due to higher cash earnings and a decrease in working capital.
This includes deferring an $81 million income tax payment in line with the CARES Act.
As of June 30, cash on hand, was $452 million.
Our full year capex plan has gone from $80 million to $100 million as we begin to expand manufacturing and distribution capacity, primarily focused on laundry, litter and vitamins.
We now expect approximately 9% to 10% full year 2020 sales growth and approximately 7% to 8% organic sales growth.
Adjusted earnings per share growth is expected to be 13% above the high end of our original 7% to 9% outlook.
The first half gross margin expanded 150 basis points.
As you heard from Matt, we intend to make incremental investments in the back half of 2020.

Summary:
Gross margin expanded by 220 basis points, and adjusted earnings per share was $0.77.
In Q2, it was 13%, and we expect second half online sales to be equally strong.
We reinstated our earnings per share outlook with 13% growth, which is far above our evergreen target of 8% annual earnings per share growth.
Second quarter adjusted EPS, which excludes an acquisition-related earn-out adjustment, grew 35% to $0.77 compared to $0.57 in 2019.
We now expect approximately 9% to 10% full year 2020 sales growth and approximately 7% to 8% organic sales growth.
Adjusted earnings per share growth is expected to be 13% above the high end of our original 7% to 9% outlook.
As you heard from Matt, we intend to make incremental investments in the back half of 2020.