Edgewell Personal Care Announces Third Quarter Fiscal 2025 Results

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]