#United States #Shelton #Edgewell Personal Care #Feminine Care #Schick

Edgewell Personal Care Reports Strong Q1 Fiscal 2026 Results

Edgewell Personal Care Company (NYSE: EPC) has recently disclosed its financial performance for the first fiscal quarter of 2026, which ended on December 31, 2025. The company noted that it achieved results that surpassed expectations for key metrics such as organic net sales, adjusted EPS, and adjusted EBITDA. With the successful divestiture of its Feminine Care business for $340 million, the company continues to sharpen its focus on its core product lines and enhance its financial stability.

Financial Highlights

For the first quarter, consolidated net sales reached $486.8 million, marking a 1.8% increase compared to the same period last year. However, organic net sales exhibited a minor decline of 0.3%. The GAAP diluted net loss per share was reported at $(1.41), an increase from $(0.04) in the previous year’s quarter. Nonetheless, adjusted EPS stood at $0.03, down from $0.07 year-over-year.

When focusing on continuing operations, which excludes the recently divested Feminine Care division, net sales amounted to $422.8 million, reflecting a 1.9% increase from the previous year. This segment's organic net sales saw a slight decrease of 0.5%.

Business Strategy and Market Focus

Rod Little, Edgewell’s President and CEO, stated, "Our solid start to fiscal 2026 and our emphasis on operational excellence in our core businesses have positioned us for success. The divestiture of our Feminine Care segment represents a significant step in our transformation strategy, allowing us to concentrate on stronger growth potential markets."

Investors are advised that the anticipated favorable annualized impact of the divestiture may enhance Edgewell’s future outlook as it continues to streamline operations. The remaining divisions—Wet Shave and Sun & Skin Care—remain pivotal to Edgewell's business strategy, with a plan to drive sustainable growth and long-term shareholder value.

Operational Performance and Costs

While the company experienced slight revenue growth, gross profit fell to $161.0 million compared to $172.5 million in the same quarter last year, with gross margin declining significantly. The review highlighted productivity savings offset by increased core inflation and unfavorable pricing. Adjusted gross margin also decreased, reflecting challenges in production costs.

Moreover, operating expenses—including advertising and general administrative costs—rose, necessitated by increased personnel costs and other operational investments. Edgewell also reported a pre-tax restructuring charge of $24.4 million aimed at optimizing its operational efficiency.

Despite these challenges, the company remains optimistic as it works on its long-term strategy, including the consolidation of operations and introduction of innovative products in its core segments.

Full-Year Outlook

Looking ahead, Edgewell has maintained its full-year outlook for continuing operations as consistent with prior expectations, wanting to assure stakeholders about the anticipated trends in sales and profitability. The revised estimates suggest potential adjustments in GAAP EPS, reflecting the transition from previous assumptions following the divestiture of Feminine Care.

Overall, Edgewell continues to navigate the market dynamics while positioning itself strategically for growth, emphasizing resilience in its diverse product offerings. As the company works on enhancing its operational framework, the outlook remains cautiously optimistic for the remainder of fiscal 2026 and beyond.