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]