Core Insights - Americans are expected to spend more on common barbeque items this Fourth of July due to rising prices of products like beer, outdoor folding chairs, and grill tools [1] Price Increases - The total cost of a typical grocery trip for a cookout has increased by 12.7% annually since President Trump's tariff announcement in April [2] - A six-pack of bottled lite domestic beer has seen price increases of over 13% since April [3] - Imported beers have also experienced price hikes, with Peroni Nastro Azzurro increasing by 10.5% and Modelo Especial by 9.5% [3] Tariff Impact - In April, tariffs of 25% were announced on beer imports and empty aluminum cans, with an increase to 50% on imported aluminum in June [4] - Higher aluminum costs have negatively impacted margins for some beer brands, including Constellation Brands [4] Cookout Gear Price Changes - Prices for cookout gear have also risen, with a Coleman foldable camping chair increasing by 47.7% and a 25-piece griddle accessories kit by 17.7% since April [5] - Other products have seen more modest price increases, such as Banana Boat sunscreen (8.1%), Reynolds Wrap aluminum foil (6.9%), Weber propane grill (5%), and disposable plates and utensils (3.3%) [5] Overall Barbeque Costs - A separate report indicated that the cost of a 10-person barbeque has risen by 4.2% this year, reaching $100 for the first time, largely due to higher beef prices [6]

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].

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]

Core Insights - Edgewell Personal Care Company reported a net sales decrease of 3.1% to $580.7 million for the second fiscal quarter of 2025, with organic net sales down 1.5% [5][13] - The gross margin increased by 100 basis points to 44.1%, despite a negative impact from foreign currency [6][12] - GAAP EPS decreased by $0.12 to $0.60, while adjusted EPS decreased by $0.01 to $0.87 [12][13] Financial Performance - Net sales were $580.7 million, a decrease of 3.1% compared to the prior year quarter, with organic net sales down 1.5% [5][13] - Gross profit was $256.2 million, compared to $258.1 million in the prior year quarter, with a gross margin of 44.1% [6][31] - Operating income was $58.9 million, or 10.1% of net sales, down from $70.1 million, or 11.7% of net sales in the prior year quarter [9][36] Segment Performance - Wet Shave segment net sales decreased by $7.6 million, or 2.6%, with organic net sales down 0.9% [16] - Sun and Skin Care segment net sales decreased by $4.7 million, or 2.0%, with organic net sales down 0.1% [17] - Feminine Care segment net sales decreased by $6.4 million, or 9.1%, with minimal currency impact [18] Cost and Expenses - Advertising and sales promotion expenses increased to $65.5 million, or 11.3% of net sales, compared to 10.5% in the prior year quarter [7] - Selling, general and administrative expenses were $105.7 million, or 18.2% of net sales, slightly up from 17.9% in the prior year quarter [8] - The company incurred pre-tax restructuring and repositioning expenses of $12.2 million in the quarter [9] Cash Flow and Capital Allocation - Net cash used for operating activities was $70.5 million for the six months ending March 31, 2025, compared to cash flow provided by operating activities of $56.1 million in the prior year period [14] - The company returned $42.7 million to shareholders through share repurchases and dividends in the second quarter [13][15] Full Year Outlook - The company updated its full-year outlook, expecting organic net sales to be flat to 1%, down from a previous range of 1% to 3% [21] - GAAP EPS is now expected to be in the range of $2.09 to $2.29, down from $2.54 to $2.74 [21] - Adjusted EBITDA is expected to be in the range of $329 to $341 million, previously towards the lower end of the range of $356 to $368 million [21]