Financial Data and Key Metrics Changes - The company reported organic net sales decreased by 50 basis points in Q1 2026, with North America showing growth while international markets experienced expected softness [10][21] - Adjusted EPS was reported at a loss of $0.16, compared to a loss of $0.10 in the prior quarter, indicating a decline in profitability [26] - Adjusted EBITDA was $25 million, down from $30.9 million in the prior year, reflecting challenges in the operating environment [26] Business Line Data and Key Metrics Changes - Wet Shave organic net sales declined approximately 4%, with growth in preps offset by declines in disposables and systems [22] - Sun and skincare organic net sales increased approximately 8%, driven by nearly 20% growth in sun care, particularly in North America [23] - Grooming organic net sales growth was approximately 7%, led by significant growth in Cremo and Bulldog [23] Market Data and Key Metrics Changes - In North America, organic net sales grew just under 1%, primarily due to strong sun care performance [21] - International markets, particularly Oceania and Greater China, experienced double-digit growth, while Europe delivered low single-digit growth [21] - Over 70% of markets either grew or held market share, with share gains noted in Australia, Europe, Canada, and China [11] Company Strategy and Development Direction - The divestiture of the Fem Care business is seen as a pivotal step in the company's transformation, allowing a sharper focus on core categories: shave, sun, skincare, and grooming [9] - The company aims to drive sustainable growth and stronger margins by reallocating resources towards these core businesses [9] - The strategy includes enhancing international growth, innovation, productivity, and a U.S. commercial transformation [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to organic net sales growth, driven by mid-single-digit growth in international markets and a more stable performance in North America [18] - The company anticipates gross margin expansion supported by productivity gains, despite facing inflationary pressures and tariffs [18] - Management remains focused on disciplined capital allocation and improving free cash flow generation [19] Other Important Information - The company declared a quarterly dividend of $0.15 per share, returning approximately $7 million to shareholders [27] - The impact of the Fem Care divestiture is expected to be approximately $0.44 in adjusted EPS and $44 million in adjusted EBITDA for fiscal 2026 [29] Q&A Session Summary Question: Thoughts on portfolio construction post-FemCare divestiture - Management highlighted the strategic move to divest a lagging business, improving gross margins and focusing on core categories with strong growth potential [38][39] Question: Expectations for fiscal Q2 organic sales - Management expects organic net sales to be down about 3% in Q2, with timing shifts affecting performance [49] Question: Implications of Fem Care dilution for fiscal 2027 - Management indicated that while there will be transitional costs, the company expects a stronger portfolio and improved cash flow recovery in fiscal 2027 [56] Question: Promotional levels in North America for Shave - Management acknowledged high promotional intensity in the shave category, particularly in women's products, but expressed confidence in improved trends in the second half of the year [80]

Core Insights - Edgewell Personal Care (EPC) reported a quarterly loss of $0.16 per share, which was better than the Zacks Consensus Estimate of a loss of $0.18, representing an earnings surprise of +11.11% [1] - The company posted revenues of $422.8 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 12.15% and down from $478.4 million year-over-year [2] - The stock has increased by approximately 21.7% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.71 on revenues of $588.06 million, while for the current fiscal year, the estimate is $2.33 on revenues of $2.26 billion [7] - The estimate revisions trend for Edgewell Personal was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Consumer Products - Staples industry, to which Edgewell belongs, is currently in the bottom 30% of the Zacks Industry Rank, suggesting that stocks in this category may underperform compared to those in the top 50% [8]

Financial Performance - Net sales for Q1 2026 were $422.8 million, an increase of 1.9% compared to the prior year quarter[4] - Organic net sales decreased by 0.5%, with North America showing a growth of 0.7% while international markets declined by 1.6%[4] - GAAP diluted net loss per share was $(0.63), compared to $(0.21) in the prior year quarter[15] - Adjusted EBITDA from continuing operations was $25.0 million, down from $30.9 million in the prior year quarter[13] - The company reported a net loss of $65.7 million for the quarter, compared to a net loss of $2.1 million in the prior year, indicating a significant deterioration in financial performance[34] - Operating loss for the quarter was $18.9 million, a decline from an operating income of $9.3 million in the same quarter last year[34] - Basic loss per share for continuing operations was $0.63, compared to a loss of $0.21 in the previous year, indicating worsening earnings performance[34] - The company reported a net loss of $36.5 million from discontinued operations for Q1 2026, compared to a profit of $8.0 million in Q1 2025[48] - The company reported a net loss of $65.7 million for Q1 2026, with an EBITDA of $(37.3) million[57] Sales and Revenue - The company expects full-year net sales to increase by approximately 0.5% to 3.5%, with an estimated 150-basis point positive impact from foreign currency changes[19] - For the three months ended December 31, 2025, total net sales increased to $422.8 million, up 1.9% from $415.1 million in the same period of 2024[41] - Wet Shave segment sales decreased to $291.3 million, a decline of 1.1% from $294.5 million, while Sun and Skin Care segment sales increased by 9.0% to $131.5 million[44] - Net sales from discontinued operations for Q1 2026 were $64.0 million, reflecting a 1.1% increase from $63.3 million in Q1 2025[49] - The impact of currency fluctuations contributed $9.6 million to net sales in Q1 2026, accounting for a 2.1% increase[55] Costs and Expenses - The company incurred pre-tax restructuring charges of $24.4 million in Q1 2026, with total expected charges for the fiscal year now at approximately $65 million[8][21] - Interest expense associated with debt is expected to be approximately $70 million, as proceeds from the Feminine Care transaction will be used to pay down debt[25] - Research and development expenses increased slightly to $13.8 million from $13.4 million, reflecting ongoing investment in product innovation[34] - Restructuring and related charges amounted to $24.4 million, significantly higher than $4.1 million in the prior year[41] - Restructuring and related costs for Q1 2026 amounted to $22.7 million, significantly impacting the adjusted EBITDA[57] - The company expects to incur approximately $63 million in restructuring and related costs in fiscal 2026[60] Debt and Liabilities - The company ended the quarter with $223.3 million in cash and an adjusted net debt leverage ratio of 3.8x[14] - Long-term debt increased to $1,520.8 million from $1,383.3 million, highlighting a rise in leverage[36] - The company’s total liabilities reached $2,281.7 million, up from $2,203.2 million, reflecting increased financial obligations[36] - Net debt as of December 31, 2025, was $1,330.0 million, up from $1,187.1 million as of September 30, 2025[47] - The company’s gross debt increased to $1,553.3 million as of December 31, 2025, from $1,412.8 million in September 2025[47] Future Outlook - Adjusted EPS is projected to be in the range of $1.70 to $2.10, reflecting a $0.44 per share reduction due to the divestiture of the Feminine Care business[19] - Adjusted EBITDA for Q1 2026 is projected to be between $245 million and $265 million, reflecting a decrease from the previous outlook of $290 million to $310 million[60] - Fiscal 2026 adjusted EPS outlook is estimated to be between $1.70 and $2.10, down from the prior estimate of $2.15 to $2.55[59] - The fiscal 2026 GAAP EPS is projected to be approximately $0.55 to $0.95, indicating a cautious outlook[59] - The company is focusing on divesting its Feminine Care segment, which is expected to impact future financial results and operational strategy[30] Segment Performance - Total segment profit decreased to $38.6 million from $43.2 million, with Wet Shave segment profit at $42.2 million and Sun and Skin Care segment loss at $3.6 million[41] - Segment profit for Q1 2026 decreased to $38.6 million, a decline of 10.6% compared to Q1 2025[45] - The company is focusing on segment performance evaluation excluding unusual or non-recurring items, which may impact financial results disproportionately[40] - Organic sales growth for the Feminine Care segment was 1.1% in Q1 2026[49]

Core Insights - Edgewell Personal Care Company reported a solid start to fiscal Q1 2026, with performance exceeding expectations for organic net sales, adjusted EPS, and adjusted EBITDA [1][2] - The company successfully completed the divestiture of its Feminine Care business for $340 million, which is expected to enhance portfolio focus and strengthen the balance sheet [1][2] - The full-year outlook for continuing operations remains consistent with prior expectations, despite the divestiture [2] Financial Performance - Net sales for Q1 2026 were $422.8 million, a 1.9% increase year-over-year, with organic net sales decreasing by 0.5% [4][5] - Adjusted EPS for the quarter was $0.03, down from $0.07 in the prior year, while GAAP diluted EPS was $(0.63), compared to $(0.21) in the previous year [5][15] - Gross profit was $161.0 million, with a gross margin of 38.1%, reflecting a decrease of 350 basis points from the prior year [7] Segment Performance - The Wet Shave segment saw a net sales decrease of $3.2 million, or 1.1%, with organic net sales down 3.9% [19] - The Sun and Skin Care segment experienced a net sales increase of $10.9 million, or 9.0%, driven by a 19.5% growth in Sun Care [20] Cost Management - Advertising and sales promotion expenses were $45.6 million, or 10.8% of net sales, a slight decrease from the prior year [8] - Selling, general and administrative expenses increased to $102.4 million, or 24.2% of net sales, primarily due to higher personnel costs [9] Cash Flow and Capital Allocation - Net cash used for operating activities was $125.9 million for the quarter, compared to $115.6 million in the prior year [16] - The company declared a quarterly cash dividend of $0.15 per common share, payable on April 8, 2026 [17] Full Year Outlook - The company expects net sales to increase by approximately 0.5% to 3.5%, with organic net sales projected to range from a 1.0% decrease to a 2% increase [21] - Adjusted EBITDA is anticipated to be in the range of $245 to $265 million, reflecting a reduction due to the divestiture of the Feminine Care business [21]

Core Viewpoint - Edgewell Personal Care Company has completed the sale of its feminine care business to Essity for $340 million, aiming to strengthen its balance sheet and invest in core business growth [1] Group 1: Transaction Details - The sale was finalized for a total of $340 million [1] - Edgewell plans to use the net proceeds from the sale, after taxes and transaction costs, primarily to pay down the balance of its U.S. revolving credit facility [1] - A Transition Services Agreement has been established between Edgewell and Essity to provide support services for at least one year post-transaction [1] Group 2: Strategic Intent - The company intends to work closely with Essity to ensure a smooth transition for employees, customers, and consumers of the Feminine Care business [1] - The focus remains on long-term growth investments in Edgewell's core businesses following the sale [1]

Group 1 - Essity has completed the acquisition of Edgewell Personal Care's feminine care business for USD 340 million (approximately SEK 3 billion) on a cash and debt-free basis, enhancing its focus on high-margin categories and market positions in the US [1][2] - The acquisition includes a diverse product portfolio of liners, pads, and tampons under well-known brands in North America, as well as a production facility in Dover, Delaware, which will be consolidated into Essity's accounts as of February 2, 2026 [2] - The CEO of Essity, Ulrika Kolsrud, expressed optimism about accelerating the growth of the acquired brands, reinforcing the company's personal care business in North America and its ambition to expand in high-yielding categories and key geographies [3] Group 2 - Essity is recognized as a fast-growing player in the feminine care category, with a strong portfolio of regional brands such as Libresse, Bodyform, Nana, Saba, Libra, Nosotras, Knix, and Modibodi, offering a wide range of products including pads, liners, tampons, intimate soaps, intimate wipes, leakproof apparel, and menstrual cups [4]

Core Insights - Edgewell Personal Care Company has completed the sale of its feminine care business to Essity for $340 million, aiming to strengthen its balance sheet and focus on core businesses [1][2] Financial Impact - The net proceeds from the sale will primarily be used to pay down the balance of the U.S. revolving credit facility and to invest in long-term growth initiatives [1][2] - Edgewell plans to provide unaudited condensed consolidated financial information reflecting the sale as a discontinued operation, expected to be available by February 6, 2026 [3] Strategic Focus - The sale is part of Edgewell's strategy to simplify its portfolio and concentrate resources on shave, sun and skin care, and grooming, enhancing its agility and durability as a personal care company [2] - A Transition Services Agreement has been established with Essity to support a smooth transition for employees and customers for at least one year post-transaction [2] Company Overview - Edgewell is a leading consumer products company with a diversified portfolio, including brands like Schick, Wilkinson Sword, and Banana Boat, operating in over 50 markets globally with approximately 6,700 employees [5]

Group 1 - Edgewell Personal Care Company will report its financial results for the first quarter of fiscal year 2026 on February 9, 2026, before the market opens [1] - The results will be discussed during an investor conference call that will be webcast starting at 8:00 a.m. Eastern Time on the same day [1] - The call will be hosted by President and CEO Rod Little and CFO Francesca Weissman [1] Group 2 - Edgewell is a leading pure-play consumer products company with a diversified portfolio of established brand names, including 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]

Group 1 - Morgan Stanley's household products and beverage analyst, Dara Mohsenian, is leading the presentation [1] - Edgewell is participating in Morgan Stanley's Global Consumer and Retail Conference, represented by President and CEO Rod Little and CFO Fran Weissman [2]

Edgewell Personal Care Company (NYSE:EPC) 2025 Conference Summary Company Overview - **Company**: Edgewell Personal Care Company - **Event**: 2025 Conference - **Date**: December 02, 2025 Key Points Organizational Changes and Strategy - Significant organizational changes have been made, including new leadership in North America and a shift to a regional hub model globally [4][5] - The recent divestiture of the FemCare business is seen as a strategic move to focus on core categories such as shave, grooming, sun, and skincare [17][19] - North America has been identified as an area needing a commercial reset, with a new leadership team in place to drive growth [7][8] Financial Performance and Growth - International growth accounts for 40% of the portfolio, with mid-single-digit growth expected to continue into fiscal 2026 [5][37] - The company has achieved consistent cost productivity improvements of 200-300 basis points year-on-year [6][26] - The divestiture of FemCare was completed for $340 million, providing financial flexibility and operational focus [18][20] Market Environment - The overall growth rate in the consumer packaged goods (CPG) categories is around 2%, with similar trends observed in the U.S. market [13][14] - The promotional environment in the U.S. has become more competitive, particularly in women's shave and FemCare categories [14][12] Capital Allocation and Investment - Post-divestiture, the focus will be on strengthening the balance sheet and paying down debt, with 80% of the FemCare proceeds expected to convert into cash [20][21] - Increased advertising and promotion (A&P) spending is planned for fiscal 2026, rising from 10% to 12% of sales, aimed at driving top-line growth [29][32] Product Categories and Innovation - The grooming category, including brands like Jack Black and Bulldog, is expected to grow at mid to high single-digit rates [45] - The wet shave category is less competitive than in previous years, with Edgewell positioned as a key player alongside Gillette [48][49] - New product innovations and campaigns are being launched to enhance market presence, particularly in the U.S. [30][31] Future Outlook - The company is optimistic about stabilizing organic sales growth in the U.S., with expectations of low single-digit growth in the back half of 2026 [41][42] - Internationally, growth is anticipated to be driven by the sun and grooming categories, with significant potential in markets like Europe and Asia [39][40] Key Risks and Considerations - The company acknowledges challenges in the lower middle-income consumer demographics, which may impact overall category performance [13][14] - There is a focus on managing stranded costs post-FemCare divestiture, with expectations of a $35-$45 million headwind in the short term [22][23] Conclusion - Edgewell Personal Care Company is at a pivotal moment with strategic changes aimed at enhancing growth and operational efficiency. The focus on core categories, coupled with increased investment in marketing and innovation, positions the company for potential recovery and growth in the coming years [51][52]