Edgewell Personal Care (NYSE:EPC) reported a fiscal Q2 earnings performance exceeding expectations, with adjusted earnings per share at $0.60 and net sales driven by improved execution in its Wet Shave, Sun, and Skin Care divisions. Organic net sales declined 2.4% year-over-year, with a notable 4.8% drop in North America, while international markets showed a 1% increase.
President and CEO Rod Little emphasized continued strategy execution following the divestiture of the Feminine Care business, asserting that Edgewell now operates with a more focused portfolio, with Wet Shave making up approximately 60% of sales. CFO Fran Weissman noted on an earnings call that inflation and tariffs contributed to a 310 basis point decrease in adjusted gross margin, while the company anticipates improved performance in the latter half of the fiscal year, forecasting 2% to 3% growth in Q3 net sales.
The company also expressed confidence in its ability to mitigate inflationary pressures and maintain strong brand investment despite ongoing challenges. With a strategic focus on international markets and innovation, Edgewell expects adjusted EBITDA of $245 million to $265 million for the fiscal year.
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