Financial Data and Key Metrics Changes - The company reported a solid start to fiscal year 2026, with results modestly ahead of expectations, reflecting progress on its strategic focus areas [8][10] - Organic net sales decreased by 50 basis points, with North America showing strength that offset expected softness in international markets [10][22] - Adjusted EPS was reported at a loss of $0.16, compared to a loss of $0.10 in the prior quarter, while adjusted EBITDA was $25 million, down from $30.9 million in the prior year [27][28] Business Line Data and Key Metrics Changes - Organic net sales in North America grew just under 1%, driven by strong sun care performance, while Wet Shave organic net sales declined approximately 4% [22][24] - Sun and skincare organic net sales increased approximately 8%, with sun care growing nearly 20% in North America [24][25] - Grooming organic net sales growth was approximately 7%, led by significant growth in Cremo and Bulldog [24] Market Data and Key Metrics Changes - Over 70% of international markets either grew or held market share, with notable gains in Australia, Europe, Canada, and China [11][12] - In the U.S., market share pressure was modest, particularly in core Wet Shave, while men's grooming showed relative strength [10][11] - International Wet Shave organic net sales declined less than 1%, with volume declines partly offset by price gains [22] Company Strategy and Development Direction - The divestiture of the feminine 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][10] - The company aims to drive sustainable growth and stronger margins by reallocating capital and resources towards its core businesses [9][10] - The strategy includes a focus on international growth, innovation, productivity, and U.S. commercial transformation [12][18] 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 [19][20] - The company anticipates gross margin expansion supported by productivity gains, despite inflationary pressures [20][21] - Management highlighted the importance of disciplined capital allocation and the use of proceeds from the FemCare sale for debt reduction [35][36] Other Important Information - The company declared a quarterly dividend of $0.15 per share, returning approximately $7 million to shareholders [28] - Adjusted free cash flow is expected to be in the range of $80 million to $110 million for the year, driven by working capital discipline [35] Q&A Session Summary Question: Thoughts on portfolio construction post-FemCare divestiture - Management emphasized the strategic move to divest the FemCare business, which was growth dilutive and capital intensive, allowing for a sharper focus on core categories [39][40] Question: Expectations for fiscal Q2 organic sales - Management expects organic net sales to be down about 3% in Q2, primarily due to shipment timing and phasing impacts [50][51] Question: Implications for FemCare dilution into fiscal 2027 - Management indicated that while there will be stranded costs to address, the company is committed to right-sizing its overhead structure and expects a stronger portfolio moving forward [53][56] Question: Promotional levels in North America for Shave - Management acknowledged that promotional intensity remains high, particularly in women's shaving, but expressed confidence in improved trends as new distribution and innovation are implemented [82]

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]

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]

Financial Data and Key Metrics Changes - In Q4, the company achieved organic net sales growth of 2.5%, aligning with expectations despite external pressures [7][22] - Adjusted gross margin rate decreased by 330 basis points, primarily due to unexpected year-end inventory adjustments and increased trade promotions [27][28] - Adjusted operating income was $40.3 million, representing 7.5% of net sales, down from 10.8% in the previous year [28] Business Line Data and Key Metrics Changes - International organic net sales grew by 6.9%, driven by volume and price gains across all segments [22] - North America experienced a decline in organic net sales by 60 basis points, with wet shave sales down approximately 1% [23] - Sun and skin care organic net sales increased by approximately 11%, with robust growth across each business segment [24] Market Data and Key Metrics Changes - International markets, representing about 40% of global sales, delivered strong growth for the fourth consecutive year, with Europe achieving its third straight year of growth [8][9] - The U.S. razor and blades category saw consumption down by 80 basis points, although market share improved sequentially [23] - The Billie brand achieved a 90 basis point share growth, now holding a 15% share at Walmart and 13% at Target [24] Company Strategy and Development Direction - The company plans to divest its feminine care business to focus on core categories with competitive advantages, including shave, sun, and skincare [6][19] - A multi-year innovation roadmap is being implemented, with significant investments in brand building and marketing to restore brand equity [11][14] - The transformation plan aims to simplify the U.S. structure, enabling faster decision-making and increased investment in growth capabilities [12][15] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a challenging fiscal 2025 due to external pressures like tariffs and geopolitical tensions, but expressed confidence in the foundation for future growth [8][19] - For fiscal 2026, the company anticipates a return to organic net sales growth, driven by mid-single-digit growth in international markets and stabilization in North America [16][33] - The macro environment is expected to remain challenging, with muted category growth and cautious consumer spending [15][16] Other Important Information - The company generated productivity savings of 270 basis points in fiscal 2025, with expectations of approximately 310 basis points in fiscal 2026 [10][30] - Adjusted EBITDA for fiscal 2026 is projected to be in the range of $290 million to $310 million, approximately flat to the prior year [37] - The divestiture of the feminine care business is expected to impact adjusted EPS by approximately $0.40 to $0.50 annually [32] Q&A Session Summary Question: Outlook and EPS Expectations - The company expects a balanced and achievable plan for 2026, with low single-digit category growth assumptions and flexibility to maintain profit goals [41][43] Question: Strategy and M&A Intentions - The focus is on winning in shave, grooming, sun, and skin categories, with potential for M&A as asset values decline [51][53] Question: Productivity and Gross Margin Concerns - The company is confident in its second-half-oriented plan, expecting higher sales growth and productivity improvements to offset margin pressures [63][64] Question: Sun and Skin Category Insights - The company plans conservatively for the sun season, expecting low single-digit growth while focusing on brand campaigns and distribution gains [81][84]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved organic net sales growth of 2.5%, aligning with expectations despite external pressures [7][22] - Adjusted gross margin rate decreased by 330 basis points, primarily due to unexpected year-end inventory adjustments and increased trade promotions [26][28] - Adjusted operating income was $40.3 million, representing 7.5% of net sales, down from 10.8% the previous year [28] Business Line Data and Key Metrics Changes - International organic net sales grew by 6.9%, driven by volume and price gains across all segments [22] - North America experienced a decline in organic net sales by 60 basis points, with wet shave sales declining approximately 1% [23] - Sun and skin care organic net sales increased by approximately 11%, with robust growth across each business segment [24] Market Data and Key Metrics Changes - International markets, representing about 40% of global sales, delivered strong growth for the fourth consecutive year, with Europe achieving its third straight year of growth [8][9] - The U.S. razor and blades category saw consumption down by 80 basis points, although market share improved sequentially [23] - The Billie brand achieved a 90 basis point share growth, indicating strong retail performance [24] Company Strategy and Development Direction - The company plans to divest its feminine care business to focus on core categories with competitive advantages, including shave, sun, and skincare [6][20] - A multi-year innovation roadmap is being implemented, with significant investments in brand building and marketing to restore brand equity [11][14] - The transformation plan aims to simplify the U.S. structure, enhance decision-making speed, and increase investment in growth capabilities [12][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging fiscal 2025 due to external pressures like tariffs and geopolitical tensions, but expressed optimism about durable international growth and innovation [8][20] - The outlook for fiscal 2026 anticipates a return to organic net sales growth, driven by mid-single-digit growth in international markets and stabilization in North America [16][34] - The company expects to face continued inflation and tariff impacts but is focused on productivity gains and margin recovery [16][36] Other Important Information - The company declared a quarterly dividend of $0.15 per share for Q4 and completed approximately $90 million in share repurchases for the fiscal year [29] - The anticipated divestiture of the feminine care business is expected to impact adjusted EPS by approximately $0.40-$0.50 annually [32] Q&A Session Summary Question: Outlook and EPS Expectations - The company expects a balanced and achievable plan for 2026, with EPS potentially at a loss in Q1 due to margin pressures and tax rate changes [40][41] Question: Strategy and Portfolio Focus - The strategy focuses on winning in shave, grooming, sun, and skin categories, with plans for potential M&A as asset values decline [45][46] Question: Productivity and Gross Margin Concerns - Management expressed confidence in the second-half-oriented plan, expecting higher sales growth and productivity improvements to enhance gross margin [50][52] Question: Use of Proceeds from Divestiture - Proceeds from the feminine care sale will primarily be used for debt reduction, with a focus on maintaining a disciplined capital allocation strategy [54][55] Question: Sun and Skin Category Outlook - The company plans conservatively for the sun category, expecting low single-digit growth while investing in brand campaigns for Hawaiian Tropic and Banana Boat [57][58]