Edgewell Personal Care (EPC) reported $537.2 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 3.8%. EPS of $0.68 for the same period compares to $0.72 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $536.03 million, representing a surprise of +0.22%. The company delivered an EPS surprise of -17.07%, with the consensus EPS estimate being $0.82.While investors scrutinize revenue and earnings changes year-over-year and how they compa ...

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]

Accessibility StatementSkip Navigation Fourth Quarter Net Sales increased 3.8%, or 2.5% Organic increase Fiscal 2025 Net Sales decreased 1.3%, or 1.3% Organic decrease Fiscal 2025 GAAP EPS $0.53, Adjusted EPS $2.52 Returned $120 Million to Shareholders via Dividends and Share Repurchases for Fiscal Year 2025 SHELTON, Conn., Nov. 13, 2025 /PRNewswire/ -- Edgewell Personal Care Company (NYSE: EPC) today announced results for its fourth fiscal quarter 2025 and fiscal year ended September 30, 2025. Executive S ...

Core Insights - Edgewell Personal Care has agreed to sell its North American feminine care business to Essity for $340 million [1] Group 1: Transaction Details - The sale includes products such as Stayfree sanitary napkins [1] - The transaction is valued at $340 million [1] Group 2: Strategic Implications - The acquisition by Essity reflects its strategy to expand in the health and hygiene sector [1]

Accessibility StatementSkip Navigation "I´m looking forward to further grow these well-known brands, using our established recipe for success within Feminine Care. With this acquisition we are building a stronger personal care business in North America, in line with our strategy to focus on high yielding categories in attractive geographies." says Ulrika Kolsrud, President and CEO of Essity. Â The total purchase price of USD 340m on a cash and debt free basis, represents an EBITDA multiple per June 30, 2025 ...

Accessibility StatementSkip Navigation Transaction streamlines Edgewell's portfolio and allows the personal care brand to focus on areas of competitive leadership SHELTON, Conn., Nov. 12, 2025 /PRNewswire/ -- Edgewell Personal Care Company (NYSE: EPC) today announced that it has entered into a definitive agreement to sell its feminine care business to Essity, a leading global health and hygiene company based in Sweden, for $340 million. The transaction is expected to close in the first quarter of calendar 2 ...