Edgewell Personal Care Company

What they do

Edgewell manufactures and markets personal care products across three segments: Wet Shave (Schick, Wilkinson Sword, Edge, Skintimate, Billie), Sun and Skin Care (Banana Boat, Hawaiian Tropic, Bulldog, Jack Black, Cremo), and Feminine Care (Playtex, Stayfree, Carefree, o.b.). The company operates in about 20 countries and sells in more than 50, with a mix of owned manufacturing and third-party supply. As of June 30, 2026, it is in the process of divesting its Feminine Care business, which is reported as discontinued operations.

Revenue drivers

• Wet Shave — The largest segment, includes men's and women's shaving systems, disposables, and shave preparation brands like Schick, Hydro, Quattro, and Edge. It drives recurring blade and razor sales globally.
• Sun and Skin Care — Includes sun protection (Banana Boat, Hawaiian Tropic) and skincare/grooming brands (Bulldog, Jack Black, Cremo). Growth is driven by seasonal sun care sales and expanding grooming lines.
• Feminine Care — Comprises Playtex, Stayfree, Carefree, and o.b. products. This segment is being divested and is now reported as discontinued operations, so it no longer contributes to continuing operations revenue.

Recent performance

In Q3 fiscal 2026 (ended June 30, 2026), net sales were $570.1 million, up 1.7% year-over-year, with organic sales up 1.1%. Gross margin declined 210 basis points to 42.5%, and adjusted gross margin fell 30 basis points to 44.5%, pressured by inflation, tariffs, and mix. GAAP diluted EPS from continuing operations was $0.26, down from $0.46, but adjusted EPS was $0.72, flat year-over-year. For the nine months ended June 30, 2026, net loss from continuing operations was $12.9 million, versus income of $32.1 million in the prior year. Cash on hand was $397.1 million with $418.8 million available under its U.S. revolving credit facility.

Strategy

Management is focused on returning to growth by investing in priority brands, improving execution in North America, and expanding distribution. They are consolidating Wet Shave manufacturing to reduce costs and improve supply chain efficiency, and they expect productivity savings to offset inflation and tariffs over time. The company is also divesting its Feminine Care business to streamline the portfolio and concentrate on higher-growth categories. They continue to return cash to shareholders through dividends, having declared a $0.15 per share quarterly dividend in August 2026.

Risks

• Foreign currency volatility — Sales and profits from international operations are exposed to currency fluctuations, and hedging may not fully offset gains or losses.
• Macroeconomic pressures — Core inflation and net tariffs contributed to a 160-basis-point drag on adjusted gross margin in Q3 fiscal 2026, and these pressures could persist.
• Supply chain and geopolitical disruption — The company cited temporary disruption from the Middle East conflict and short-term supply chain impacts from its Wet Shave manufacturing consolidation, which reduced international organic sales.
• Legal and regulatory exposure — Edgewell is subject to legal proceedings and regulatory reviews, and although management believes liabilities are not material, outcomes are uncertain.

Outlook

Management narrowed full-year fiscal 2026 guidance, keeping the mid-points for adjusted EPS and adjusted EBITDA unchanged. They expect fiscal 2026 to be a 'back-half story' with growth weighted toward the second half, and they are 'increasingly confident' in the business trajectory. The company plans to complete the Feminine Care divestiture, which will affect future revenue and earnings comparisons.