Core Viewpoint - Edgewell Personal Care (EPC) reported quarterly earnings of $0.92 per share, missing the Zacks Consensus Estimate of $1.01 per share, and down from $1.22 per share a year ago, indicating a negative earnings surprise of -8.91% [1][2] Financial Performance - The company posted revenues of $627.2 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 4.54%, and down from $647.8 million year-over-year [2] - Over the last four quarters, Edgewell has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - Edgewell Personal shares have declined approximately 25.6% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.00 on revenues of $531.38 million, and for the current fiscal year, it is $2.94 on revenues of $2.25 billion [7] - The estimate revisions trend for Edgewell Personal was favorable prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Consumer Products - Staples industry, to which Edgewell belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Edgewell faced a challenging Q3 FY2025 with weak Sun Care seasons and declining sales, but saw international growth and strategic investments [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO noted challenging Q3 FY2025 from weak Sun Care and FX headwinds, balanced by international growth and market share gains - Challenging quarter due to very weak Sun Care seasons in North America and certain Latin American markets, compounded by tariffs and foreign exchange contributing to full-year profit headwinds[3](index=3&type=chunk) - Strong performance in International business with growth and strengthened market share, and strong supply chain execution leading to further productivity gains[4](index=4&type=chunk) - Improved market share performance in North America from targeted, stepped-up investments in Hawaiian Tropic, Cremo, and Hydro Silk brands, positioning the portfolio for a stronger 2026 and beyond[4](index=4&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Q3 FY2025 saw net sales decrease 3.2% to $627.2 million, with GAAP EPS at $0.62 and Adjusted EPS at $0.92 Key Financial Metrics | Metric | Q3 FY2025 | Q3 FY2024 | Change (%) | | :----- | :--------- | :--------- | :--------- | | Net Sales | $627.2 million | $647.8 million | -3.2% | | Organic Net Sales | -4.2% | N/A | -4.2% | | GAAP Diluted EPS | $0.62 | $0.98 | -36.7% | | Adjusted EPS | $0.92 | $1.22 | -24.6% | - Ended the third quarter with **$199.6 million** in cash on hand and a net debt leverage ratio of **3.7x**[5](index=5&type=chunk) - Returned **$31.7 million** to shareholders in the form of **$24.5 million** in share repurchases and **$7.2 million** of dividends in the third quarter[5](index=5&type=chunk) [Fiscal 3Q 2025 Operating Results (Unaudited)](index=3&type=section&id=Fiscal%203Q%202025%20Operating%20Results%20%28Unaudited%29) Q3 FY2025 saw a 3.2% net sales decrease, reduced gross margin, and lower operating income, alongside dividend payments and share repurchases [Consolidated Financial Performance](index=3&type=section&id=Consolidated%20Financial%20Performance) Q3 FY2025 net sales decreased 3.2% to $627.2 million, with adjusted gross margin down 150 bps and operating income falling to $53.7 million Consolidated Financial Metrics | Metric | Q3 FY2025 | Q3 FY2024 | Change | | :----- | :--------- | :--------- | :----- | | Net Sales | $627.2M | $647.8M | -3.2% | | Organic Net Sales | -4.2% | N/A | -4.2% | | Gross Profit | $268.5M | $287.1M | -6.5% | | Adjusted Gross Margin | 42.8% | 44.3% | -150 bps | | Operating Income | $53.7M | $82.7M | -35.1% | | Adjusted Operating Income | $75.1M | $94.8M | -20.8% | | GAAP Net Earnings | $29.1M | $49.0M | -40.6% | | Adjusted Net Earnings | $43.4M | $61.2M | -29.1% | | Adjusted EBITDA | $96.4M | $117.2M | -17.8% | - Organic net sales decreased **4.2%**, with North America declining **8.0%** due to volume declines and increased promotional levels in Sun Care, Wet Shave, and Feminine Care, while international markets saw **2.2%** organic growth driven by price gains[6](index=6&type=chunk) - Adjusted gross margin decreased **150-basis points** to **42.8%**, primarily due to **180-basis points** of core inflation and volume absorption, **90-basis points** of increased promotional levels, and **40-basis points** of unfavorable mix, partially offset by **270-basis points** of productivity savings[7](index=7&type=chunk) [Capital Allocation](index=4&type=section&id=Capital%20Allocation) The Board declared a $0.15 per share dividend, with $7.2 million paid in dividends and $24.5 million in share repurchases - Declared a quarterly cash dividend of **$0.15 per common share** for the third fiscal quarter of fiscal 2025, payable on October 8, 2025[18](index=18&type=chunk) Capital Allocation Activity | Capital Allocation Activity | Q3 FY2025 | | :------------------------ | :--------- | | Dividends Paid | $7.2 million | | Share Repurchases | $24.5 million | | Shares Repurchased | 0.9 million | - As of June 30, 2025, the Company had **0.2 million shares** of common stock available for repurchase under the Board's 2018 authorization[18](index=18&type=chunk) [Fiscal 3Q 2025 Operating Segment Results (Unaudited)](index=4&type=section&id=Fiscal%203Q%202025%20Operating%20Segment%20Results%20%28Unaudited%29) All segments experienced declines in Q3 FY2025, with Wet Shave net sales up slightly but organic sales down, and Sun/Skin and Feminine Care showing significant decreases [Wet Shave Segment](index=4&type=section&id=Wet%20Shave%20%28Men%27s%20Systems%2C%20Women%27s%20Systems%2C%20Disposables%2C%20and%20Shave%20Preps%29) Wet Shave net sales increased 0.2% to $317.0 million, but organic net sales decreased 1.8%, while segment profit fell 7.4% Wet Shave Segment Performance | Metric | Q3 FY2025 | Q3 FY2024 | Change | Organic Change | | :----- | :--------- | :--------- | :----- | :------------- | | Net Sales | $317.0M | $316.3M | +0.2% | -1.8% | | Segment Profit | $44.1M | $47.6M | -7.4% | +2.3% | - Organic net sales decreased **1.8%**, as growth in international markets, driven by higher price, was more than offset by volume declines and increased promotional levels in North America[19](index=19&type=chunk) - Organic segment profit increased **2.3%**, as higher gross margins and lower SG&A spend were partly offset by higher marketing expenses[19](index=19&type=chunk) [Sun and Skin Care Segment](index=4&type=section&id=Sun%20and%20Skin%20Care%20%28Sun%20Care%2C%20Men%27s%20and%20Women%27s%20Grooming%20Products%2C%20and%20Wet%20Ones%29) Sun and Skin Care net sales decreased 5.3% to $243.4 million, with organic sales down 5.5% and segment profit falling 28.3% Sun and Skin Care Segment Performance | Metric | Q3 FY2025 | Q3 FY2024 | Change | Organic Change | | :----- | :--------- | :--------- | :----- | :------------- | | Net Sales | $243.4M | $256.9M | -5.3% | -5.5% | | Segment Profit | $46.0M | $64.2M | -28.3% | -26.3% | - Organic net sales decreased **5.5%**, largely driven by weather-related volume declines and increased competition in North America Sun Care[20](index=20&type=chunk) - Grooming increased **6.1%** driven by increased volumes within the Sun and Skin Care segment[20](index=20&type=chunk) - Organic segment profit decreased **26.3%**, driven by lower gross margin and higher marketing and SG&A expenses[20](index=20&type=chunk) [Feminine Care Segment](index=4&type=section&id=Feminine%20Care%20%28Tampons%2C%20Pads%2C%20and%20Liners%29) Feminine Care net sales decreased 10.5% to $66.8 million, driven by declines in Pads and Tampons, with segment profit down 31.8% Feminine Care Segment Performance | Metric | Q3 FY2025 | Q3 FY2024 | Change | Organic Change | | :----- | :--------- | :--------- | :----- | :------------- | | Net Sales | $66.8M | $74.6M | -10.5% | -10.4% | | Segment Profit | $4.5M | $6.6M | -31.8% | -25.7% | - Net sales decreased **10.5%** with minimal currency impact, largely driven by a decline in Pads and Tampons[21](index=21&type=chunk) - Organic segment profit decreased **25.7%**, primarily driven by lower gross profit, partially offset by lower marketing and SG&A expenses[21](index=21&type=chunk) [Full Fiscal Year 2025 Financial Outlook](index=4&type=section&id=Full%20Fiscal%20Year%202025%20Financial%20Outlook) Edgewell updated its FY2025 outlook, projecting decreased organic net sales and EPS, while increasing restructuring charges to strengthen operations [Key Outlook Assumptions](index=4&type=section&id=Key%20Outlook%20Assumptions) FY2025 outlook updated

Core Insights - Edgewell Personal Care Company reported a net sales decrease of 3.2% to $627.2 million for the third fiscal quarter of 2025, with organic net sales down 4.2% [6][14][19] - The company faced challenges due to weak Sun Care seasons in North America and certain Latin American markets, impacting both top and bottom-line performance [4][5] - The GAAP EPS was $0.62, down from $0.98 in the prior year quarter, while adjusted EPS was $0.92 compared to $1.22 in the previous year [14][16] Financial Performance - Gross profit for the quarter was $268.5 million, a decrease from $287.1 million in the prior year, with an adjusted gross margin of 42.8%, down 150 basis points [7][11] - Operating income was $53.7 million, or 8.6% of net sales, compared to $82.7 million, or 12.8% of net sales in the prior year [11][16] - The company recorded pre-tax restructuring charges of $17.8 million in support of cost efficiency programs [10] Segment Performance - Wet Shave segment net sales increased slightly by $0.7 million, while organic net sales decreased by 1.8% due to volume declines in North America [19] - Sun and Skin Care segment net sales decreased by $13.5 million, or 5.3%, largely due to weather-related volume declines and increased competition [20] - Feminine Care segment net sales decreased by $7.8 million, or 10.5%, primarily driven by a decline in pads and tampons [21] Outlook - The company updated its full-year outlook, now expecting organic net sales to decrease approximately 1.3% and GAAP EPS to be around $1.73 [22][23] - Adjusted EPS is now expected to be approximately $2.65, reflecting an estimated $0.46 per share unfavorable impact from foreign currency changes [23] - The effective tax rate for the first nine months of fiscal 2025 was 27.0%, up from 22.2% in the prior year period [14][15]

Financial Results Announcement - Edgewell Personal Care Company will report its financial results for the third quarter of fiscal year 2025 before the market opens on August 5, 2025 [1] - An investor conference call will be held on the same day at 8:00 a.m. Eastern Time, hosted by key executives including the President and CEO, COO, and CFO [1] Access to Webcast - Interested parties can access a live webcast of the conference call through the company's website under the "Investors" and "News and Events" tabs [2] - A replay of the webcast will also be available for those unable to participate live [2] Company Overview - Edgewell is a leading pure-play consumer products company with a diversified portfolio of established brand names, including Schick®, Wilkinson Sword®, Playtex®, and Banana Boat® [3] - 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 [3]

Core Viewpoint - Edgewell Personal Care Company has released its fiscal 2024 Sustainability Report, highlighting progress towards its Sustainable Care 2030 strategy, which focuses on embedding sustainability across its brands, operations, supply chain, and communities [1][2]. Brands - 90% of fiber- and paper-based packaging across the product portfolio is made from recycled and/or certified responsibly sourced fiber [6] - There has been a 23.6% reduction in virgin petroleum-based plastic in disposable razor handles compared to the FY19 baseline [6] - The company introduced BANANA BOAT 360 COVERAGE SUNSCREEN MIST with a reusable sprayer and refill bottles made from recycled plastic [6] - CREMO's new range of antiperspirants and deodorants features barrels made from 100% recycled plastic [6] - Over 1 million individual menstrual health products were donated to nonprofit organizations by the Feminine Care team in FY24 [6] Operations and Supply Chain - Approximately 95% of lighting at most manufacturing sites has been upgraded to energy-efficient LEDs [6] - There was a 35% reduction in waste across manufacturing facilities in FY24 compared to the FY19 baseline [6] - 55% of Edgewell's manufacturing facilities achieved or maintained zero-waste-to-landfill status in FY24 [6] - 100% of palm oil used in products is certified sustainable, sourced directly or through credits [6] People and Communities - 85% of teammates reported satisfaction with Edgewell as a workplace in the annual Global Teammate Experience Survey [6] - More than 37,500 recognition moments were celebrated for teammates in FY24 [6] - The company achieved a world-class injury rate of 0.65 [6] - Approximately $915,000 was donated in charitable giving throughout FY24 [6] Recognition - Edgewell was ranked as one of America's Most Responsible Companies by Newsweek and Statista for the sixth consecutive year, placing 4 in the retail & consumer goods industry in 2025 [6] - The company was recognized as one of America's Climate Leaders by USA Today for significant reductions in core greenhouse gas emissions intensity [6] - Edgewell ranked in the top 25 of Forbes America's Best Midsize Employers in 2025 and 1 in the packaged goods industry [6] About Sustainable Care 2030 - Sustainable Care 2030 is Edgewell's strategy aimed at balancing business growth with environmental and societal care, including key commitments and targets across brands, operations, and communities [8].

Group 1 - Renergen has awarded preferred bidder status to He4u consortium for Phase 2 of the Tetra4 LNG and helium liquefaction project, which includes Chart Industries, WBHO, and Aurex Constructors [1][2] - The award signifies that Chart Industries' technologies for helium liquefaction and LNG liquefaction have been chosen as the preferred technical solution for the project [2] - The involvement of local construction partners like Aurex and WBHO is expected to enhance the execution of large projects in South Africa [2][4] Group 2 - Chart Industries is a leading global manufacturer of equipment for energy and industrial gas applications, with operations in over 50 countries [3] - WBHO is one of the largest construction companies in Southern Africa, specializing in various construction activities and listed on the Johannesburg Securities Exchange [3] - Aurex Constructors has over 40 years of experience in the energy sector, focusing on quality and safety in delivering construction and maintenance solutions [4] Group 3 - Chart Industries expressed enthusiasm about being selected as the technology partner for Tetra4's liquefaction needs, indicating readiness to provide engineering solutions [5] - Renergen's CEO highlighted the experienced team executing Phase 2 on a turnkey basis, which is expected to significantly reduce execution risk [6]

Financial Performance - Net sales in Q2 fiscal 2025 decreased by $18.7 million, or 3.1%, to $580.7 million compared to the prior year quarter[104] - Organic net sales decreased by $8.9 million, or 1.5%, with international markets growing by 2.9% driven by price and volume gains[104] - Net earnings for Q2 fiscal 2025 were $29.0 million, down from $36.0 million in the prior year quarter[104] - Adjusted net earnings for Q2 fiscal 2025 were $41.8 million, compared to $44.0 million in the prior year quarter[104] - Diluted net earnings per share in Q2 fiscal 2025 were $0.60, down from $0.72 in the prior year quarter[104] - Adjusted diluted net earnings per share in Q2 fiscal 2025 were $0.87, compared to $0.88 in the prior year quarter[104] - Net sales for the first six months of fiscal 2025 decreased by $29.2 million, or 2.7%, to $1,059.1 million compared to the prior year period[107] - Organic net sales decreased by $15.4 million, or 1.4%, with international markets showing organic growth of 2.4% driven by price and volume gains[110] - Net earnings for the first six months of fiscal 2025 were $26.9 million, down from $40.8 million in the prior year period, with adjusted net earnings at $45.1 million compared to $56.0 million[107] - Diluted net earnings per share for the first six months of fiscal 2025 were $0.55, down from $0.81 in the prior year period, with adjusted diluted EPS at $0.93 compared to $1.11[107] Expenses and Profitability - The company reported a gross profit margin of 44.1% for GAAP and 44.7% for adjusted measures in Q2 fiscal 2025[103] - Gross profit for the first six months of fiscal 2025 was $447.8 million, a decrease of $8.0 million, or 1.8%, from the prior year period[112] - SG&A expense for the first six months of fiscal 2025 was $208.6 million, or 19.7% of net sales, compared to $210.8 million, or 19.4% of net sales in the prior year[114] - Research and development expense for the first six months of fiscal 2025 was $27.8 million, an increase of $0.3 million, or 1.1%, compared to the prior year[119] - Interest expense associated with debt for the first six months of fiscal 2025 was $39.0 million, a decrease of $1.2 million, or 3.0%, compared to the prior year[122] - General corporate expenses for Q2 fiscal 2025 were $59.2 million, or 10.2% of net sales, compared to $56.5 million or 9.4% in the prior year quarter[141] Taxation - The GAAP effective tax rate for Q2 fiscal 2025 was 29.9%[103] - The effective tax rate for Q2 fiscal 2025 was 29.9%, up from 23.4% in the prior year quarter, with an adjusted rate of 28.5% compared to 23.6%[125] Segment Performance - Wet Shave net sales for Q2 fiscal 2025 were $285.5 million, a decrease of $7.6 million or 2.6%, with an unfavorable currency impact of $5.1 million or 1.7%[129] - Organic net sales in Wet Shave declined 0.9% in Q2 fiscal 2025, with a 3.2% growth in international markets offset by a 5.4% decline in North America[129] - Sun and Skin Care net sales for Q2 fiscal 2025 decreased by $4.7 million or 2.0%, including a $4.5 million unfavorable currency impact[133] - Feminine Care net sales for Q2 fiscal 2025 were $64.1 million, a decrease of $6.4 million or 9.1%, with a 9.9% decline in North America[137] - Wet Shave segment profit for Q2 fiscal 2025 was $46.6 million, an increase of $6.2 million or 15.3%[131] - Sun and Skin Care segment profit for Q2 fiscal 2025 was $50.8 million, a decrease of $3.6 million or 6.6%[135] - Feminine Care segment profit for Q2 fiscal 2025 was $3.1 million, a decrease of $5.6 million or 64.4%[139] Cash Flow and Financing - Cash flow used for operating activities was $70.5 million for the first six months of fiscal 2025, compared to cash flow provided of $56.1 million in the prior year[151] - Net cash used for investing activities was $33.0 million in the first six months of fiscal 2025, up from $19.7 million in the prior year, primarily due to increased capital expenditures of $33.9 million[152] - Net cash provided by financing activities was $72.5 million in the first six months of fiscal 2025, compared to a net cash used of $59.4 million in the prior year[153] - The company repurchased 1.9 million shares of common stock for $65.7 million during the first six months of fiscal 2025[154] - Dividend payments totaled $15.2 million in the first six months of fiscal 2025, slightly down from $15.8 million in the prior year[156] - As of March 31, 2025, total borrowings amounted to $1,468.2 million, an increase from $1,308.5 million as of September 30, 2024[146] - As of March 31, 2025, the company had $228.7 million available under the U.S. Revolving Credit Facility after accounting for borrowings and outstanding letters of credit[147] - The company expects cash flows from operations and borrowing capacity to be sufficient for future working capital requirements for at least the next 12 months[150] - As of March 31, 2025, the company was in compliance with all debt agreement provisions and covenants[149] - A one-percent increase in applicable interest rates would increase annual interest expense on variable-rate debt instruments by approximately $2.2 million[162] Restructuring and Future Outlook - The company expects to incur pre-tax restructuring charges of approximately $33 million in fiscal 2025, with $16.4 million incurred in the first six months[120] - The company utilized non-GAAP measures to provide insights into underlying operational results and future performance[94]

Core Insights - Edgewell Personal Care (EPC) reported revenue of $580.7 million for the quarter ended March 2025, reflecting a year-over-year decline of 3.1% [1] - The earnings per share (EPS) for the same period was $0.87, down from $0.88 a year ago, with an EPS surprise of -3.33% against a consensus estimate of $0.90 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $590.67 million, resulting in a surprise of -1.69% [1] Financial Performance Metrics - Net Sales in Feminine Care were $64.10 million, below the average estimate of $66.82 million, representing a year-over-year decline of 9.1% [4] - Net Sales in Wet Shave amounted to $285.50 million, slightly below the average estimate of $287.81 million, with a year-over-year change of -2.6% [4] - Net Sales in Sun and Skin Care reached $231.10 million, compared to the average estimate of $236.08 million, indicating a year-over-year decline of 2% [4] Stock Performance - Over the past month, shares of Edgewell Personal have returned +9.4%, while the Zacks S&P 500 composite has changed by +10.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Organic net sales decreased by 1.5% in Q2 2025, with international markets growing by 3% while North America declined by 4% [21][33] - Adjusted gross margin rate increased by 100 basis points, with productivity savings of approximately 380 basis points [34][28] - Adjusted operating income was $77 million, down from $81 million in the previous year, with adjusted earnings per share at $0.87 compared to $0.88 [35][36] Business Line Data and Key Metrics Changes - Wet Shave organic net sales were down about 1%, while international Wet Shave grew by 3% [22] - Grooming organic net sales increased by 9%, led by a 20% growth for the Cremo brand [26] - Fem Care organic net sales decreased by approximately 9%, primarily due to declines in tampons and pads [27] Market Data and Key Metrics Changes - Consumption in the U.S. Sun Care category decreased by 1% in the quarter, with total market share down by 60 basis points [25] - Double-digit organic growth was observed in Greater China and mid-single-digit growth in Japan and Europe [21] - The U.S. razors and blades category saw a consumption decline of 30 basis points, with market share decreasing by 90 basis points [23] Company Strategy and Development Direction - The company is focused on restoring momentum in North America, with significant investments in sun care and women's shave categories [30][12] - A strategic review is underway to assess and address business performance, with new leadership enhancing brand building capabilities [11][12] - The company aims to leverage international success to drive similar improvements in North America [13] Management's Comments on Operating Environment and Future Outlook - Management noted increasing pressure on consumers and a decline in consumer confidence, impacting spending behaviors [16][14] - The outlook for the second half of the fiscal year has been adjusted to reflect more modest expectations for consumption across categories, particularly in Sun Care [15][39] - Management expressed confidence in sequential improvement in North America, supported by recent market share gains [14][69] Other Important Information - The estimated impact of tariffs on cost of goods sold for fiscal 2025 is approximately $3 million to $4 million [41][18] - The company plans to invest incrementally in brand campaigns and product launches to support growth [30][31] - Free cash flow for the full year is now expected to be approximately $130 million to $140 million, reflecting lower earnings and higher inventory levels [43][85] Q&A Session Summary Question: Can you provide more details on the tariff impact? - Management estimated the in-year impact of tariffs to be $3 million to $4 million, primarily affecting the fourth quarter [49][50] Question: What is the confidence level for organic sales growth in the second half? - Management expects a 2% organic growth in the second half, driven by international growth and seasonal factors [62][67] Question: How does the company view the Sun Care category outlook? - Management remains bullish on the Sun Care category, expecting growth despite some concerns about travel spending impacting consumption [98][99]

Financial Data and Key Metrics Changes - Organic net sales decreased by 1.5% in Q2 2025, with international markets growing by 3% while North America declined by 4% [22][36] - Adjusted gross margin rate increased by 100 basis points, with productivity savings of approximately 380 basis points [37][30] - Adjusted earnings per share were $0.87, slightly down from $0.88 in the prior year quarter [38] Business Line Data and Key Metrics Changes - Wet Shave organic net sales were down about 1%, while international Wet Shave grew by 3% [24] - Grooming organic net sales increased by 9%, led by a 20% growth for the Cremo brand [28] - Fem Care organic net sales decreased by approximately 9%, primarily driven by declines in tampons and pads [29] Market Data and Key Metrics Changes - Consumption in the U.S. Sun Care category decreased by 1% in the quarter, with total market share down by 60 basis points [27] - Double-digit organic growth was observed in Greater China, with mid-single-digit growth in Japan and Europe [22] - The U.S. razors and blades category saw a consumption decline of 30 basis points, with market share decreasing by 90 basis points [25] Company Strategy and Development Direction - The company is focused on restoring momentum in North America, with significant investments in sun care and women's shave categories [12][33] - A new campaign for Hawaiian Tropic is set to be the largest investment in the U.S. in five years, targeting Gen Z consumers [34] - The company aims to leverage recent successes in international markets to replicate growth in North America [13] Management's Comments on Operating Environment and Future Outlook - Management noted increasing pressure on consumers and a decline in consumer confidence, impacting spending behaviors [17][14] - The outlook for the second half of the fiscal year anticipates a modest growth profile, with organic net sales growth expected to be flat to 1% [41] - Management expressed confidence in sequential improvement in North America, driven by new leadership and strategic initiatives [14][75] Other Important Information - The estimated impact of tariffs on cost of goods sold for fiscal 2025 is approximately $3 million to $4 million [43] - The company plans to continue exploring opportunities to mitigate tariff impacts through productivity and potential price increases [92][93] - Free cash flow for the full year is now expected to be in the range of $130 million to $140 million, reflecting lower earnings and higher inventory levels [45] Q&A Session Summary Question: Can you provide more details on the tariff impact? - The estimated in-year impact of tariffs is $3 million to $4 million, primarily affecting the fourth quarter, with a broader annualized exposure of 3% to 4% of COGS [50][52] Question: What is the confidence level for second half organic sales growth? - The company expects a 2% organic growth in the second half, driven by international growth, Sun Care category growth, and a more thoughtful approach to fem care [62][64] Question: How does the company view the North American execution? - Management clarified that while sales did not meet expectations, they are confident in execution and are investing in key programs for improvement [76][78]