Edgewell Personal Care Q3 Earnings Call Highlights

Organic sales returned to growth: Fiscal Q3 organic net sales rose 1.1%, led by 3% growth in North America across grooming, sun and skin care, and branded wet shave.

International sales fell 1.4% because of supply disruptions, weaker seasonal demand and geopolitical pressures.

Profitability remained pressured: Adjusted EPS held steady at $0.72, while adjusted operating income declined to $53 million from $63.6 million as inflation, promotional spending, unfavorable mix and higher operating expenses offset productivity gains.

Full-year outlook midpoint maintained: Edgewell narrowed its fiscal 2026 ranges, forecasting flat to 0.5% organic sales growth, adjusted EPS of $1.80–$2.00 and adjusted EBITDA of $250–$260 million.

Management expects stronger fourth-quarter results and margin improvement from productivity savings, lower one-time costs and favorable currency.

Edgewell Personal Care NYSE: EPC reported a return to organic sales growth in its fiscal third quarter of 2026, supported by improved North American performance in grooming, sun and skin care, and branded wet shave.

The company said adjusted earnings per share and adjusted EBITDA exceeded its internal expectations, while it maintained the midpoint of its full-year outlook.

“Organic net sales returned to growth, driven by a meaningful improvement in North America, where performance exceeded our expectations,” President and Chief Executive Officer Rod Little said during the company’s earnings call.

Little said the company expects stronger overall growth in the fiscal fourth quarter, including growth in North America and international markets.

Organic net sales from continuing operations increased 1.1% in the quarter.

North American organic sales rose 3%, fueled by double-digit grooming growth, mid-single-digit sun and skin care growth, and a return to growth in branded wet shave.

International organic sales declined 1.4%.

Chief Financial Officer Fran Weissman attributed the decline to the Middle East conflict, reduced private-label sales caused by temporary supply disruptions, and a weaker-than-anticipated start to the sun season in Europe and Latin America.

Weissman said the company expects international sales to return to growth in the fourth quarter as supply-chain conditions improve.

Wet shave organic sales declined 1.9%, as supply disruptions affecting private-label products more than offset growth in branded wet shave.

In the U.S. razors and blades category, consumption increased 160 basis points amid heightened promotional activity, according to the company.

Edgewell’s branded share declined 40 basis points, which management attributed partly to cycling elevated promotional activity from the prior year and changes to couponing, primarily in drug stores.

Sun and skin care organic sales increased 5%, driven by North American sun care, global grooming growth, and skincare gains.

Hawaiian Tropic, Cremo and Wet Ones produced encouraging results, management said, aided by distribution expansion, product innovation and brand spending.

Cremo recorded its seventh consecutive quarter of roughly 20% or greater grooming growth.

In U.S. sun care, category consumption declined about 2% during the quarter.

Edgewell’s value share declined 60 basis points, as gains at Hawaiian Tropic did not offset declines at Banana Boat.

Hawaiian Tropic gained 110 basis points of share in the quarter.

Management said year-to-date category trends offer a more complete view given weather-driven seasonal shifts; through mid-July, sun care consumption was up 1.4% and Edgewell’s overall market share...