Edgewell Personal Care reported fourth‑quarter 2025 results that included a $537.2 million net sales figure, up 3.8% year‑over‑year, driven by a 2.5% organic increase and favorable currency effects. The company posted a GAAP earnings per share of $0.53 and an adjusted EPS of $0.68, falling short of the consensus estimate of $0.82 by $0.14, a miss of 17%. Net loss for the quarter was $30.6 million, a swing from the $8.8 million profit reported in the same quarter a year earlier, largely due to a $36.3 million operating loss and significant restructuring and goodwill impairment charges.
The quarter’s revenue beat was largely powered by strong international demand, which grew 6.9% organically, offsetting a 0.6% decline in North America. Currency movements contributed a 1.2% lift, while promotional spend increased by 3.5% to support market share gains in key categories. Gross margin contracted by 330 basis points to 39.3% of net sales, a sharper decline than the 230‑basis‑point figure originally reported, reflecting higher raw‑material costs, inflationary pressure on packaging, and a shift toward lower‑margin product mixes.
Profitability metrics were impacted by a combination of one‑time charges and operating performance. The operating loss of $36.3 million, compared with a $20.4 million profit in Q4 2024, was driven by a $25 million goodwill impairment and $10 million restructuring costs. Adjusted operating income fell to $40.3 million from $56.0 million year‑earlier, a 28% decline that mirrors the margin compression and the loss of high‑margin wet‑shave sales in the U.S. market.
Segment analysis shows that the Wet Shave and Sun & Skin Care lines continued to generate strong sales growth, while the Feminine Care segment, now being divested, contributed a declining share of revenue. International markets, particularly in Asia and Europe, delivered double‑digit organic growth, whereas the U.S. market faced price sensitivity and increased competition from private‑label brands. These dynamics explain the mixed revenue picture and the need for continued investment in high‑margin categories.
Management guidance for fiscal 2026 reflects a cautious outlook. Net sales growth is now projected at 0.5% to 3.5% versus the previous 0.0% to 1.0% range, adjusted EPS is forecast at $2.15 to $2.55 against the prior $2.85 to $3.05, and free cash flow is expected to be $115 to $145 million versus $130 to $140 million. The tighter guidance signals management’s concern over ongoing tariff headwinds, currency volatility, and the capital intensity of brand‑growth initiatives.
The company’s divestiture of its Feminine Care business to Essity for $340 million, announced on November 12, 2025, is expected to strengthen the balance sheet and free capital for core brand investments. The transaction is projected to close in Q1 2026 and will remove a segment that has been underperforming relative to the company’s high‑margin focus.
Rod Little, President and CEO, emphasized that “the divestiture marks a pivotal step in our transformation, sharpening our focus on core categories and positioning Edgewell for sustainable, long‑term growth.” He also noted that “we are focused on execution, margin recovery, and delivering shareholder value, with accelerated growth expected in the second half of 2026 and into 2027.”
The earnings miss and the lower‑than‑expected guidance prompted a negative market reaction, with analysts citing the EPS shortfall and margin compression as key concerns. Investors are wary of the company’s ability to rebound from the operating loss and the impact of tariff and currency headwinds on future profitability.
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