Core Insights - Edgewell Personal Care Company will participate in a fireside chat at the Morgan Stanley Global Consumer and Retail Conference on December 2, 2025, at 10:15 A.M. ET, with presentations by the CEO Rod Little and CFO Francesca Weissman [1][2] Company Overview - Edgewell is a leading pure-play consumer products company with a diversified portfolio that includes established brands such as Schick®, Wilkinson Sword®, Billie®, Edge®, Skintimate®, Playtex®, Stayfree®, Carefree®, o.b.®, Banana Boat®, Hawaiian Tropic®, Bulldog®, Jack Black®, Cremo®, and Wet Ones® [2] - The company operates in over 50 markets globally, including the U.S., Canada, Mexico, Germany, Japan, the U.K., and Australia, employing approximately 6,700 people worldwide [2] Recent Developments - Edgewell announced the sale of its feminine care business to Essity for $340 million [4]

Business Strategy and Growth - The company plans to sell its Feminine Care segment for $340 million, subject to purchase price adjustments upon closing [38]. - The company expects to drive growth in its Sun and Skin Care business through product innovation, increased distribution, and geographic expansion [35]. - The Bulldog skincare products have expanded sales geographically since acquisition, with continued resource commitment for growth [37]. - The company has a diverse portfolio of personal care brands acquired over the years, enhancing its market position [30]. - Customer orders for Sun Care products are highly seasonal, leading to increased sales during late winter through mid-summer months [48]. Market Position and Competition - The company holds the number two global market share position in wet shaving, with significant presence in the U.S., Canada, Japan, Germany, France, and the U.K. [32]. - The company is one of the top three manufacturers of feminine care products in North America, leveraging competitive product technologies [38]. - The company faces competition from major players like Procter & Gamble and Kimberly Clark in the feminine care market [44]. - The global men's skincare market is expected to continue growing, with the company competing through its Bulldog and Jack Black brands [43]. Financial Performance and Risks - Walmart accounted for approximately 17.4% of the company's net sales in fiscal 2025, with Target Corporation representing about 9.2% for the Sun and Skin Care segment and 10.1% for the Feminine Care segment [46]. - The company maintains a cash flow hedging program related to foreign currency risk, with unrealized pre-tax gains of $1.4 million and $2.4 million at September 30, 2025, and 2024, respectively [287]. - The company is exposed to significant currency rate risks, particularly with the euro, Japanese yen, British pound, Canadian dollar, and Australian dollar, which can impact reported earnings [284]. - Outstanding variable-rate debt instruments amounted to $140.0 million, primarily related to the Revolving Credit Facility and international notes payable [293]. - A one percent increase in applicable interest rates would increase annual interest expense by approximately $1.7 million [293]. Innovation and Intellectual Property - As of September 30, 2025, the company owned 271 unexpired U.S. patents and 1,321 foreign patents, with expiration dates ranging from October 2025 to June 2050 [52]. - The company actively pursues foreign patent protection and routinely prepares additional patent applications, indicating a strong focus on innovation and intellectual property [52]. Sustainability and Compliance - The company aims to achieve operational carbon neutrality across its global operations and reduce greenhouse gas emissions as part of its Sustainable Care 2030 strategy [63]. - The company is subject to various environmental regulations, including those from the U.S. FDA and EPA, which govern the manufacture and distribution of its products [54]. - The company is committed to compliance with discrimination laws and fostering an inclusive work environment [70]. Employee Wellbeing and Culture - The company has approximately 6,700 employees, with around 2,000 based in the United States, fostering a culture centered around the guiding purpose of Making Useful Things Joyful [67]. - The company emphasizes employee wellbeing through various programs, including onsite biometric screening and mental health support, aiming to foster a culture of wellbeing by 2025 [69]. - Employee experience survey results show increased confidence in the company's future and a sense of belonging, with improvements noted year over year [72]. - The company’s human resources policies and wellbeing programs are designed to attract and retain key personnel, contributing to positive employee retention rates [69]. Operational Management - The company utilizes a direct sales force supplemented by strategic distributors and wholesalers, with dedicated commercial organizations in key markets [45]. - The principal raw materials include steel, plastic resins, and organic chemicals, which are sourced regionally or globally and are subject to price and availability fluctuations [49]. - The company has established e-commerce operations across several business lines, including partnerships with T-Mall in China to accelerate e-commerce sales [45]. - The company has a strong focus on safety culture, revitalizing its "Alive and Well" program across manufacturing sites [71]. - The company’s executive team includes experienced leaders, with the Chief Executive Officer having served since March 1, 2019, and the Chief Financial Officer since December 1, 2024 [76][84].

Core Insights - Edgewell Personal Care Company (NYSE:EPC) is recognized as one of the 15 Best 52-Week Low Dividend Stocks to Invest in [1] - RBC Capital has reduced its price target for Edgewell from $26 to $23 while maintaining an Outperform rating, citing a slight revenue beat in Q4 but disappointing profitability and FY26 outlook [2] - The planned divestiture of the Fem Care division is expected to enhance Edgewell's growth and margins over time, although significant improvements are not anticipated in the short term [3] Financial Performance - For fiscal Q4 2025, Edgewell reported revenue of $537.2 million, reflecting a 3.8% increase year-over-year and exceeding analysts' estimates by $4.38 million [5] - The company ended the quarter with $225.7 million in cash and returned $119.5 million to shareholders through $90.2 million in buybacks and $29.3 million in dividends [5] Strategic Moves - Edgewell announced a definitive agreement to sell its feminine care division to Essity for $340 million, with the deal expected to close in Q1 2026, pending regulatory approvals [4] - The company plans to utilize most of the after-tax proceeds from the sale to strengthen its balance sheet and continue investing in long-term growth across its core brands [4]

Core Insights - Edgewell Personal Care (EPC) reported revenue of $537.2 million for the quarter ended September 2025, marking a year-over-year increase of 3.8% [1] - The earnings per share (EPS) for the same period was $0.68, down from $0.72 a year ago, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $536.03 million by 0.22%, while the EPS fell short of the consensus estimate of $0.82 by 17.07% [1] Revenue Performance - Net Sales in Feminine Care reached $67.3 million, slightly below the average estimate of $67.62 million, reflecting a year-over-year increase of 0.9% [4] - Net Sales in Wet Shave amounted to $321.9 million, compared to the estimated $328.88 million, showing a year-over-year increase of 1.2% [4] - Net Sales in Sun and Skin Care were reported at $148 million, surpassing the average estimate of $139.53 million, with a significant year-over-year increase of 11.5% [4] Stock Performance - Over the past month, shares of Edgewell Personal have declined by 6.2%, contrasting with the Zacks S&P 500 composite's increase of 4.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - In Q4, the company generated organic net sales growth of 2.5%, aligning with expectations in international markets and showing progress in North America [7][22] - Adjusted gross margin rate decreased by 330 basis points, primarily due to higher-than-anticipated inventory adjustments and increased trade promotions [27][28] - Adjusted operating income was $40.3 million, or 7.5% of net sales, compared to $56 million, or 10.8% of net sales last year [28] Business Line Data and Key Metrics Changes - International organic net sales grew by 6.9%, driven by volume and price gains across all segments [22] - North America experienced a decline in organic net sales of approximately 1%, with Wet Shave declining by about 1% while Sun Care and Grooming showed growth [23][24] - Grooming organic net sales grew by 9%, led by over 28% growth in Cremo [26] Market Data and Key Metrics Changes - International markets represented approximately 40% of global sales and delivered strong growth for the fourth consecutive year [8] - Europe generated its third straight year of growth, and Greater China delivered double-digit growth [9] - In the U.S. razor and blades category, consumption was down 80 basis points in the quarter, although market share improved sequentially [23] Company Strategy and Development Direction - The company plans to divest its Feminine Care business to focus on core categories with competitive advantages, including Shave, Sun, and Skin Care [6][19] - A multi-year innovation roadmap is being implemented, with significant investments in brand building and marketing [11][12] - The company aims to optimize its North American Wet Shave business and manufacturing footprint to enhance productivity and efficiency [10][12] Management Comments on Operating Environment and Future Outlook - Management acknowledged significant external pressures, including tariffs and foreign exchange volatility, impacting financial performance [8][20] - The outlook for fiscal 2026 anticipates a return to organic net sales growth, driven by mid-single-digit growth in international markets and stabilization in North America [16][33] - The company expects to face challenges from inflation and tariffs but is focused on productivity gains and brand investments to support growth [16][35] Other Important Information - The company declared a $0.15 per share dividend for Q4 and returned approximately $7 million to shareholders via dividends [29] - The anticipated divestiture of the Feminine Care business is expected to impact adjusted EPS by approximately $0.40-$0.50 annually [32] Q&A Session Summary Question: Outlook and EPS in Q1 - Management indicated that the 2026 plan is balanced and achievable, with expectations for low single-digit category growth and maintaining market share [42][43] Question: Strategy and M&A Intentions - The focus is on winning in Shave, Grooming, Sun, and Skin categories, with potential for M&A as asset values decline [51][54] Question: Productivity and Gross Margin Concerns - Management expressed confidence in the second-half-oriented plan, expecting higher sales growth and productivity improvements to enhance gross margin [64][66] Question: Sun and Skin Category Outlook - The company plans conservatively for the Sun season, with clean inventory levels and new campaigns for Hawaiian Tropic and Banana Boat [82]

Financial Data and Key Metrics Changes - In Q4, the company achieved organic net sales growth of 2.5%, aligning with expectations despite external pressures [7][22] - Adjusted gross margin rate decreased by 330 basis points, primarily due to unexpected year-end inventory adjustments and increased trade promotions [27][28] - Adjusted operating income was $40.3 million, representing 7.5% of net sales, down from 10.8% in the previous year [28] Business Line Data and Key Metrics Changes - International organic net sales grew by 6.9%, driven by volume and price gains across all segments [22] - North America experienced a decline in organic net sales by 60 basis points, with wet shave sales down approximately 1% [23] - Sun and skin care organic net sales increased by approximately 11%, with robust growth across each business segment [24] Market Data and Key Metrics Changes - International markets, representing about 40% of global sales, delivered strong growth for the fourth consecutive year, with Europe achieving its third straight year of growth [8][9] - The U.S. razor and blades category saw consumption down by 80 basis points, although market share improved sequentially [23] - The Billie brand achieved a 90 basis point share growth, now holding a 15% share at Walmart and 13% at Target [24] Company Strategy and Development Direction - The company plans to divest its feminine care business to focus on core categories with competitive advantages, including shave, sun, and skincare [6][19] - A multi-year innovation roadmap is being implemented, with significant investments in brand building and marketing to restore brand equity [11][14] - The transformation plan aims to simplify the U.S. structure, enabling faster decision-making and increased investment in growth capabilities [12][15] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a challenging fiscal 2025 due to external pressures like tariffs and geopolitical tensions, but expressed confidence in the foundation for future growth [8][19] - For fiscal 2026, the company anticipates a return to organic net sales growth, driven by mid-single-digit growth in international markets and stabilization in North America [16][33] - The macro environment is expected to remain challenging, with muted category growth and cautious consumer spending [15][16] Other Important Information - The company generated productivity savings of 270 basis points in fiscal 2025, with expectations of approximately 310 basis points in fiscal 2026 [10][30] - Adjusted EBITDA for fiscal 2026 is projected to be in the range of $290 million to $310 million, approximately flat to the prior year [37] - The divestiture of the feminine care business is expected to impact adjusted EPS by approximately $0.40 to $0.50 annually [32] Q&A Session Summary Question: Outlook and EPS Expectations - The company expects a balanced and achievable plan for 2026, with low single-digit category growth assumptions and flexibility to maintain profit goals [41][43] Question: Strategy and M&A Intentions - The focus is on winning in shave, grooming, sun, and skin categories, with potential for M&A as asset values decline [51][53] Question: Productivity and Gross Margin Concerns - The company is confident in its second-half-oriented plan, expecting higher sales growth and productivity improvements to offset margin pressures [63][64] Question: Sun and Skin Category Insights - The company plans conservatively for the sun season, expecting low single-digit growth while focusing on brand campaigns and distribution gains [81][84]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved organic net sales growth of 2.5%, aligning with expectations despite external pressures [7][22] - Adjusted gross margin rate decreased by 330 basis points, primarily due to unexpected year-end inventory adjustments and increased trade promotions [26][28] - Adjusted operating income was $40.3 million, representing 7.5% of net sales, down from 10.8% the previous year [28] Business Line Data and Key Metrics Changes - International organic net sales grew by 6.9%, driven by volume and price gains across all segments [22] - North America experienced a decline in organic net sales by 60 basis points, with wet shave sales declining approximately 1% [23] - Sun and skin care organic net sales increased by approximately 11%, with robust growth across each business segment [24] Market Data and Key Metrics Changes - International markets, representing about 40% of global sales, delivered strong growth for the fourth consecutive year, with Europe achieving its third straight year of growth [8][9] - The U.S. razor and blades category saw consumption down by 80 basis points, although market share improved sequentially [23] - The Billie brand achieved a 90 basis point share growth, indicating strong retail performance [24] Company Strategy and Development Direction - The company plans to divest its feminine care business to focus on core categories with competitive advantages, including shave, sun, and skincare [6][20] - A multi-year innovation roadmap is being implemented, with significant investments in brand building and marketing to restore brand equity [11][14] - The transformation plan aims to simplify the U.S. structure, enhance decision-making speed, and increase investment in growth capabilities [12][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging fiscal 2025 due to external pressures like tariffs and geopolitical tensions, but expressed optimism about durable international growth and innovation [8][20] - The outlook for fiscal 2026 anticipates a return to organic net sales growth, driven by mid-single-digit growth in international markets and stabilization in North America [16][34] - The company expects to face continued inflation and tariff impacts but is focused on productivity gains and margin recovery [16][36] Other Important Information - The company declared a quarterly dividend of $0.15 per share for Q4 and completed approximately $90 million in share repurchases for the fiscal year [29] - The anticipated divestiture of the feminine care business is expected to impact adjusted EPS by approximately $0.40-$0.50 annually [32] Q&A Session Summary Question: Outlook and EPS Expectations - The company expects a balanced and achievable plan for 2026, with EPS potentially at a loss in Q1 due to margin pressures and tax rate changes [40][41] Question: Strategy and Portfolio Focus - The strategy focuses on winning in shave, grooming, sun, and skin categories, with plans for potential M&A as asset values decline [45][46] Question: Productivity and Gross Margin Concerns - Management expressed confidence in the second-half-oriented plan, expecting higher sales growth and productivity improvements to enhance gross margin [50][52] Question: Use of Proceeds from Divestiture - Proceeds from the feminine care sale will primarily be used for debt reduction, with a focus on maintaining a disciplined capital allocation strategy [54][55] Question: Sun and Skin Category Outlook - The company plans conservatively for the sun category, expecting low single-digit growth while investing in brand campaigns for Hawaiian Tropic and Banana Boat [57][58]

Core Insights - Edgewell Personal Care (EPC) reported quarterly earnings of $0.68 per share, missing the Zacks Consensus Estimate of $0.82 per share, and down from $0.72 per share a year ago, representing an earnings surprise of -17.07% [1] - The company posted revenues of $537.2 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.22%, compared to year-ago revenues of $517.6 million [2] - Edgewell Personal shares have declined approximately 43.7% year-to-date, contrasting with the S&P 500's gain of 16.5% [3] Company Performance - Over the last four quarters, Edgewell Personal has not surpassed consensus EPS estimates, topping revenue estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $487.08 million, and for the current fiscal year, it is $2.75 on revenues of $2.26 billion [7] Industry Context - The Consumer Products - Staples industry, to which Edgewell Personal belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Edgewell's stock performance [5][6]

Financial Performance - Fourth quarter net sales increased by 3.8% to $537.2 million, while full year net sales decreased by 1.3% to $2,223.5 million[5][20] - Organic net sales rose by 2.5% in the fourth quarter but decreased by 1.3% for the full year, with international markets showing organic growth of 3.5%[5][20] - Gross profit for fiscal 2025 was $924.9 million, with a gross margin of 41.6%, a decrease of 80 basis points from the prior year[21] - Operating income for fiscal 2025 was $96.6 million, or 4.3% of net sales, down from $199.3 million, or 8.8% of net sales, in the prior year[25] - The company reported a net loss of $30.6 million for the three months ended September 30, 2025, compared to net earnings of $8.8 million for the same period in 2024[43] - Net earnings for the twelve months ended September 30, 2025, were $25.4 million, down 74.2% from $98.6 million in 2024[49] - The company reported an EBIT of $219.1 million for the twelve months ended September 30, 2025, with a GAAP effective tax rate of (7.3)%[53] - The company reported an EBITDA of $(15.8) million for the three months ended September 30, 2025, compared to $43.3 million in the same period of 2024[59] Shareholder Returns - The company returned $120 million to shareholders through dividends and share repurchases in fiscal 2025, including a new share repurchase authorization for up to $100 million[5][28] Tax and Restructuring - GAAP diluted EPS for fiscal 2025 was $0.53, while adjusted EPS was $2.52, reflecting a $0.48 unfavorable impact from currency movements[5][26] - The effective tax rate for fiscal 2025 was a benefit of (7.3)%, compared to an expense of 18.5% in the prior year[14] - The adjusted effective tax rate is expected to be approximately 21% to 22%[32] - The company incurred restructuring and related costs of $3.5 million during the twelve months ended September 30, 2025, which affected overall profitability[53] - Restructuring and related costs for the three months ended September 30, 2025, were $18.3 million, compared to $22.8 million in the same period of 2024[59] Future Projections - Reported net sales are expected to increase by approximately 0.5% to 3.5%, with a positive impact of 150 basis points from foreign currency changes[32] - Organic net sales are projected to decrease by 1% to increase by 2%[32] - GAAP EPS is anticipated to be in the range of $1.10 to $1.50, including restructuring and related costs[32] - Adjusted EPS is expected to range from $2.15 to $2.55, with an estimated $0.28 per share favorable impact from foreign currency changes[32] - Adjusted EBITDA is projected to be between $290 million and $310 million[32] - Free cash flow is expected to be approximately $115 million to $145 million[32] - Fiscal 2026 Adjusted EBITDA is projected to be between $290 - $310 million, with GAAP Net Income expected to be approximately $51 - $70 million[63] Asset and Liability Management - Total assets increased to $3,756.3 million as of September 30, 2025, compared to $3,730.9 million in 2024, reflecting a growth of 0.7%[46] - Total liabilities rose to $2,203.2 million, an increase of 2.6% from $2,146.8 million in 2024[46] - The company’s total shareholders' equity decreased to $1,553.1 million as of September 30, 2025, from $1,584.1 million in 2024, a decline of 2.0%[46] - Net debt increased to $1,187.1 million as of September 30, 2025, compared to $1,090.4 million in 2024, representing an increase of approximately 8.9%[59] Segment Performance - Segment profit for Wet Shave decreased to $190.3 million for the twelve months ended September 30, 2025, down 6.5% from $203.9 million in 2024[51] - The Wet Shave segment experienced a decline in organic sales of 1.2% for the twelve months ended September 30, 2025, while the Fem Care segment saw a decline of 7.7%[57] - The total segment profit for the twelve months ended September 30, 2025, was $304.3 million, down 16.4% year-over-year, primarily due to adverse currency impacts[57] Impairment and Charges - The company recorded pre-tax restructuring costs of $53.1 million in fiscal 2025, aimed at improving cost efficiency[24] - The company reported impairment charges of $51.1 million for the twelve months ended September 30, 2025[51]

Core Insights - Edgewell Personal Care Company reported a 3.8% increase in fourth quarter net sales, reaching $537.2 million, with a 2.5% organic growth [5][12] - For fiscal year 2025, net sales decreased by 1.3% to $2,223.5 million, with organic sales also declining by 1.3% [12][16] - The company returned $120 million to shareholders through dividends and share repurchases during fiscal year 2025 [12][23] Financial Performance - Gross profit for the fourth quarter was $208.6 million, down from $212.8 million in the prior year, resulting in a gross margin of 38.8%, a decrease of 230 basis points [6][12] - Adjusted operating income for the fourth quarter was $40.3 million, or 7.5% of net sales, compared to $56.0 million, or 10.8% in the prior year [9][12] - The company recorded a net loss of $30.6 million for the fourth quarter, translating to a loss of $0.66 per diluted share, compared to a profit of $8.8 million or $0.17 per diluted share in the prior year [12][22] Segment Performance - Wet Shave segment net sales increased by 1.2% to $318.2 million, while organic net sales decreased by 0.8% due to volume declines in North America [13][38] - Sun and Skin Care segment net sales rose by 11.5% to $148.0 million, with organic growth of 11.1% driven by volume growth [14][38] - Feminine Care segment net sales increased slightly by 0.9% to $67.3 million, but segment profit decreased by 22.6% [15][38] Strategic Initiatives - The company announced the divestiture of its Feminine Care business to Essity for $340 million, marking a significant strategic shift [12][13] - Edgewell aims to return to organic sales growth in 2026, with a focus on execution, margin recovery, and sustainable shareholder value [4][12] - The company plans to incur pre-tax charges of approximately $49 million in fiscal 2026 for restructuring and efficiency improvements [25][24]