EDGEWELL PERSONAL CARE Co
For the period ended Dec 31, 2025. Filed Feb 9, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 9, 2026
EPC$27.99-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001628280-25-037827
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-09.
0001628280-26-006288
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 115 previous paragraphs and 93 current paragraphs.
47 unchanged; 24 reworded; 22 added; 43 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 16 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Feminine Care Divestiture
Current report
On November 12, 2025, we entered into an agreement to sell our Feminine Care segment to Essity, a leading global health and hygiene company based in Sweden for $340.0. On February 2, 2026, we closed the transaction and received proceeds of approximately $340 million on a cash-free and debt-free basis. In connection with closing of the transaction, we and Essity entered into a transition services agreement for the provision of certain services to support the transition of the Feminine Care segment following the closing. The divestiture of the Feminine Care segment is a key step to transform Edgewell into a more focused, agile and consumer-driven personal care company. In the first quarter of fiscal 2026, the assets and liabilities of the former Feminine Care segment were classified as held for sale and the former Feminine Care segment’s results are presented as discontinued operations. This change was applied on a retrospective basis.
Current report
All amounts, percentages and disclosures for all periods presented reflect only the continuing operations of Edgewell unless otherwise noted.
Current report
First Quarter of Fiscal 2026
Current report
•Net salesin the first quarter of fiscal 2026 increased $7.7, or 1.9%, to $422.8, as compared to the prior year quarter. Organic net sales decreased $1.9, or 0.5%. Organic sales growth in North America was 0.7%, driven by volume growth in Sun Care and Grooming, partially offset by lower volumes and unfavorable pricing in Wet Shave and Skin Care. Organic sales in international markets declined 1.6%, largely driven by volume declines in Sun Care and Wet Shave, primarily reflecting an anticipated change in the quarterly phasing of Wet Shave sales in Japan, and Sun Care sales in distributor markets.
Current report
•Net (loss) earnings from continuing operations in the first quarter of fiscal 2026 were $(29.2) compared to $(10.1) in the prior year quarter. On an adjusted basis, net (loss) earnings from continuing operations for the first quarter of fiscal 2026 were $(7.6) compared to $(4.8) in the prior year quarter. Adjusted net loss increased primarily due to a decrease in gross margin, partially offset by higher sales.
Current report
•Diluted net (loss) earnings per share from continuing operations during the first quarter of fiscal 2026 were $(0.63) compared to $(0.21) in the prior year quarter. On an adjusted basis, diluted net earnings per share from continuing operations during the first quarter of fiscal 2026 were $(0.16) compared to $(0.10) in the prior year quarter.
Current report
For the first quarter of fiscal 2026, net sales increased $7.7, or 1.9%, to $422.8, including a $9.6, or 2.4%, favorable impact from currency movements, as compared to the prior year quarter. Organic net sales decreased $1.9, or 0.5%. Organic sales growth in North America was 0.7%, driven by volume growth in Sun Care and Grooming, partially offset by lower volumes and unfavorable pricing in Wet Shave and Skin Care. Organic sales in international markets declined 1.6%, largely driven by volume declines in Sun Care and Wet Shave, primarily reflecting an anticipated change in the quarterly phasing of Wet Shave sales in Japan, and Sun Care sales in distributor markets.
Current report
See Note 3 to the Condensed Consolidated Financial Statements for additional information.
Current report
Income Tax Benefit on Continuing Operations
Current report
(Loss) earnings from discontinued operations, net of tax
Current report
(Loss) earnings from discontinued operations, net of tax includes the results of the Feminine Care business that was held-for-sale in the first quarter of fiscal 2026.
Current report
The loss of $36.5 in the first quarter of fiscal 2026 compared to earnings of $8.0 in the prior year quarter. The loss in the first quarter of 2026 primarily includes the impact of the goodwill impairment charge of $37.4 and loss on held-for-sale of $3.8.
Current report
Wet Shave net sales for the first quarter of fiscal 2026 were $291.3, a decrease of $3.2, or 1.1%, as compared to the prior year quarter, including a $8.4, or 2.8%, favorable impact from currency. Organic net sales decreased $11.6, or 3.9%, as International markets declined 0.7% as a result of unfavorable phasing of Wet Shave sales in Japan, as anticipated, partly offset by higher pricing while North America declined 8.3% as a result of decreased volumes and increased promotional levels.
Current report
Sun and Skin Care net sales for the first quarter of fiscal 2026 increased $10.9, or 9.0%, as compared to the prior year quarter, including a favorable impact from foreign currency of $1.2, or 1.0%. Organic net sales increased $9.7, or 8.0%, driven by 19.5% growth in Sun Care, primarily driven by higher volumes in North America. Grooming increased 6.8% driven by increased volumes, led by nearly 27% growth in Cremo. In aggregate, the increase in organic sales was related to 14.8% growth in North America, partially offset by a 5.4% decline in International sales.
Current report
Sun and Skin Care segment loss for the first quarter of fiscal 2026 was $3.6, an increase of $0.2, or 5.9%, as compared to the prior year quarter, including a favorable impact from foreign currency of $0.3, or 8.8%. Organic segment loss increased $0.5 million, or 14.7%, driven by higher marketing, partly offset by higher gross profit.
Current report
For the first quarter of fiscal 2026, corporate expenses were $75.5, or 17.9%, of net sales, compared to $55.9, or 13.5% in the prior year quarter.
Current report
During the first quarter of fiscal 2026, corporate expenses increased primarily related to higher people costs and unfavorable currency impacts, partly offset by lower consulting and corporate expenses. General corporate and other expenses includes indirect corporate overhead costs previously allocated to the Feminine Care segment.
Current report
During the first quarter of fiscal 2026, we recorded a charge of $1.0 related to a legal matter.
Current report
During the first quarter of fiscal 2026 and 2025, we recorded a gain of $1.5 and $0.9, respectively, for the fair value measurement of certain equity interests accounted for under the cost and equity methods.
Current report
As noted above, on February 2, 2026, we closed on the sale of our Feminine Care segment to Essity. We used proceeds from this sale to repay all outstanding borrowings under our Revolver. The remaining proceeds are expected to be used for continued investment in our core brands, capital expenditures and other growth initiatives. We estimate approximately $55 million of cash taxes to be paid on the tax gain from the sale.
Current report
Net cash provided by financing activities was $133.4 during the first three months of fiscal 2026, compared to $109.9 in the prior year quarter. During the first three months of fiscal 2026, we had net borrowings of $137.0 under the U.S. Revolving Credit Facility, compared to net borrowing of $165.0 in the prior year quarter. Dividend payments totaled $7.4 in the first three months of fiscal 2026, compared to $7.9 in the prior year quarter. We had no share repurchases in the first three months of fiscal 2026, compared to $30.3 in the prior year quarter.
Removed paragraphs (43)
Previous report
Forward-Looking Statements
Previous report
This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of Edgewell Personal Care Company or any of our businesses (the “Company”). Forward-looking statements may appear throughout this report, including, without limitation, the following sections: Management’s Discussion and Analysis, Risk Factors, and the Notes to the Condensed Consolidated Financial Statements. Forward-looking statements generally can be identified by the use of words or phrases such as “believe,” “expect,” “expectation,” “anticipate,” “may,” “could,” “intend,” “estimate,” “plan,” “target,” “predict,” “likely,” “will,” “should,” “forecast,” “outlook,” “strategy,” or other similar words or phrases. These statements are not based on historical facts, but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future earnings and performance of the Company or any of our businesses. Many factors outside our control could affect the realization of these estimates. These statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or projections will be achieved. The forward-looking statements included in this report are only made as of the date of this report, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. You should not place undue reliance on these statements.
Previous report
In addition, other risks and uncertainties not presently known to us or that we presently consider immaterial could significantly affect the forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Risks and uncertainties include those detailed from time to time in our publicly filed documents, including in Item 1A. Risk Factors of Part I of our 2024 Annual Report or in our Quarterly Report on Form 10-Q for the period ended March 31, 2025.
Previous report
Third Quarter of Fiscal 2025
Previous report
•Net sales in the third quarter of fiscal 2025 decreased $20.6, or 3.2%, to $627.2, as compared to the prior year quarter. Organic net sales decreased $27.5, or 4.2%. Organic growth in international markets was 2.2%, largely driven by price gains, seen across Wet Shave and Sun & Skin Care. Organic sales declined in North America by 8.0%, due to volume declines and increased promotional levels in Sun Care, Wet Shave, and Feminine Care.
Previous report
•Net earnings in the third quarter of fiscal 2025 were $29.1 compared to $49.0 in the prior year quarter. On an adjusted basis, net earnings for the third quarter of fiscal 2025 were $43.4 compared to $61.2 in the prior year quarter. Adjusted net earnings decreased primarily due to lower net sales.
Previous report
•Diluted net earnings per share during the third quarter of fiscal 2025 were $0.62 compared to $0.98 in the prior year quarter. On an adjusted basis, diluted net earnings per share during the third quarter of fiscal 2025 were $0.92 compared to $1.22 in the prior year quarter.
Previous report
First Nine Months of Fiscal 2025
Previous report
•Net sales in the first nine months of fiscal 2025 decreased $49.8, or 2.9%, to $1,686.3, as compared to the prior year period. Organic net sales decreased $42.9, or 2.5%. Organic growth in international markets was 2.3%, driven by both price and volume gains, and seen across Wet Shave and Sun & Skin Care. Organic sales declined in North America by 5.4%, due to declines in Wet Shave, Sun Care and Feminine Care. Globally, organic growth in Grooming and Skin Care was more than offset by declines in Sun Care, Feminine Care and Wet Shave. In aggregate, organic net sales decreased as a result of volume declines in Wet Shave, Feminine Care and Sun Care.
Previous report
•Net earnings in the first nine months of fiscal 2025 were $56.0 compared to $89.8 in the prior year period. On an adjusted basis, net earnings for the first nine months of fiscal 2025 were $88.5 compared to $117.2 in the prior year period. Adjusted net earnings decreased primarily due to lower net sales and a decrease in gross margin.
Previous report
•Diluted net earnings per share during the first nine months of fiscal 2025 were $1.17 compared to $1.79 in the prior year period. On an adjusted basis, diluted net earnings per share during the first nine months of fiscal 2025 were $1.84 compared to $2.33 in the prior year period.
Previous report
For the third quarter of fiscal 2025, net sales decreased $20.6, or 3.2%, to $627.2, including a $6.9, or 1.1%, favorable impact from currency movements, as compared to the prior year quarter. Organic net sales decreased $27.5, or 4.2%. Organic growth in international markets was 2.2%, largely driven by price gains, seen across Wet Shave and Sun & Skin Care. Organic sales declined in North America by 8.0%, due to volume declines and increased promotional levels in Sun Care, Wet Shave, and Feminine Care.
Previous report
For the first nine months of fiscal 2025, net sales were $1,686.3, a decrease of $49.8, or 2.9%, including a $6.9, or 0.4%, unfavorable impact from currency movements. Organic net sales decreased $42.9, or 2.5%. Organic growth in international markets was 2.3%, driven by both price and volume gains, and seen across Wet Shave and Sun & Skin Care. Organic sales declined in North America by 5.4%, due to declines in Wet Shave, Sun Care and Feminine Care. Globally, organic growth in Grooming and Skin Care was more than offset by declines in Sun Care, Feminine Care and Wet Shave. In aggregate, organic net sales decreased as a result of volume declines in Wet Shave, Feminine Care and Sun Care.
Previous report
Gross profit was $716.3 during the first nine months of fiscal 2025, compared to $742.9 in the prior year period, a decrease of $26.6, or 3.6%. Gross margin as a percent of net sales for the third quarter of fiscal 2025 decreased 30-basis points, to 42.5%. Adjusted gross margin as a percent of net sales decreased 50-basis points, to 42.8% in the quarter. Productivity savings of approximately 330-basis points were more than offset by 200-basis points of core inflation and volume absorption, 80-basis points of negative foreign currency and 50-basis points of increased promotional levels (net of pricing) and 50-basis points of unfavorable mix and other.
Previous report
SG&A expense was $313.0, or 18.6%, of net sales in the first nine months of fiscal 2025 compared to $320.9, or 18.5%, of net sales in the prior year period. Adjusted SG&A was $307.5, or 18.2% of net sales, an increase of 20-basis points, which was primarily driven by the impact of lower net sales, higher consulting expenses and unfavorable currency impacts, partially offset by lower incentive compensation expense.
Previous report
A&P expense for the first nine months of fiscal 2025 was $196.2, an increase of $8.3, or 4.4%, compared to $187.9 in the prior year period. A&P was 11.6% of net sales, compared to 10.8% in the prior year period.
Previous report
R&D expense for the first nine months of fiscal 2025 was $41.8, a decrease of $0.3, or 0.7%, compared to $42.1 in the prior year period. As a percentage of net sales, R&D expense was 2.5% in the third quarter of fiscal 2025, compared to 2.4% in the prior year period.
Previous report
Interest expense associated with debt for the first nine months of fiscal 2025 was $58.4, a decrease of $0.6, or 1.0%, compared to $59.0 in the prior year period. The decrease in interest expense was the result of a lower borrowing rate on the Company’s U.S. Revolving Credit Facility.
Previous report
Other (income) expense, net, was income of $2.3 in the first nine months of fiscal 2025, including a gain on investment of $0.9, compared to expense of $4.4 in the prior year period. Currency hedge and remeasurements gains were $1.4 million in the current period, compared to a gain of $4.3 million in the prior year period. The current year period included $1.5 of other project gains, compared to the prior year period which included a loss on investment of $3.1. Adjusted other (income) expense, net was expense of $0.1 compared to expense of $1.3 in the prior year quarter.
Previous report
Income Tax Provision
Previous report
The effective tax rate for the first nine months of fiscal 2025, was 27.0%, compared to 22.2% in the prior year period. The fiscal 2025 effective tax rate reflects the impact of net unfavorable discrete items compared to the prior year period which included net favorable discrete items. On an adjusted basis, the effective tax rate was 26.4% for the first nine months ended June 30, 2025, and 22.3% in the prior year period.
Previous report
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and several new U.S. tax law changes. The legislation has multiple effective dates with certain provisions effective for the Company beginning fiscal 2026. We are currently assessing the impact of these tax law changes on our consolidated financial statements.
Previous report
Wet Shave net sales for the third quarter of fiscal 2025 were $317.0, an increase of $0.7, or 0.2%, as compared to the prior year quarter, including a $6.4, or 2.0%, favorable impact from currency. Organic net sales decreased $5.7, or 1.8%, as 2.8% growth in international markets, driven by higher price, was more than offset by volume declines and increased promotional levels in North America. Organic net sales declined 7.8% in North America.
Previous report
Wet Shave net sales for the first nine months of fiscal 2025 were $897.0, a decrease of $14.1, or 1.5%, as compared to the prior year period, including a $1.9, or 0.2%, unfavorable impact from currency. Organic net sales decreased $12.2, or 1.3%, as 2.9% growth in international markets, driven by both higher volumes and price, was more than offset by a 6.6% decline in North America, driven by lower volumes.
Previous report
Wet Shave segment profit for the third quarter of fiscal 2025 was $44.1, a decrease of $3.5, or 7.4%, and inclusive of a $4.6, or 9.7%, unfavorable impact from currency. The increase in organic segment profit $1.1, or 2.3%, excluding the impact of foreign currency, was due to higher gross margins and lower SG&A spend, partly offset by higher marketing expenses.
Previous report
Sun and Skin Care net sales for the third quarter of fiscal 2025 decreased $13.5, or 5.3%, as compared to the prior year quarter, including a favorable impact from foreign currency of $0.6, or 0.2%. Organic net sales decreased $14.1, or 5.5%, largely driven by weather related volume declines and increased competition in North America Sun Care. Grooming increased 6.1% driven by increased volumes. In aggregate, the decrease in organic sales was related to a 7.1% decline in North America , partially offset by an increase of 0.7% in International sales.
Previous report
Sun and Skin Care net sales for the first nine months of fiscal 2025 decreased $13.0, or 2.1%, as compared to the prior year period, including an unfavorable impact from foreign currency of $4.6, or 0.8%. Organic net sales decreased $8.4, or 1.3%, driven by declines in North America Sun Care, partially offset by strong performance in Grooming and Wet One’s, led by Cremo. In aggregate, the decrease in organic sales was related to a 1.7% decrease in North America, partially offset by an increase of 0.3% in International sales.
Previous report
Sun and Skin Care segment profit for the third quarter of fiscal 2025 was $46.0, a decrease of $18.2, or 28.3%, as compared to the prior year quarter, including an unfavorable impact from foreign currency of $1.3, or 2.0%. Organic segment profit decreased $16.9 million, or 26.3%, driven by lower gross margin and higher marketing and SG&A expenses.
Previous report
Sun and Skin Care segment profit for the first nine months of fiscal 2025 was $93.4, a decrease of $23.9, or 20.4%, as compared to the prior year period, including an unfavorable impact from foreign currency of $4.4, or 3.8%. Organic segment profit decreased $19.5, or 16.6%, driven by lower gross margin and higher SG&A expenses, partially offset by lower marketing expenses.
Previous report
Feminine Care
Previous report
Feminine Care net sales for the third quarter of fiscal 2025 were $66.8, a decrease of $7.8, or 10.5%, with minimal currency impact. Organic net sales decreased $7.7, or 10.4%, largely driven by a decline in Pads and Tampons. In aggregate, the decrease in organic sales was driven by a 10.8% decline in North America and a 3.6% decline in International sales.
Previous report
Feminine Care net sales for the first nine months of fiscal 2025 were $194.2, a decrease of $22.7, or 10.5%. Organic net sales decreased $22.3, or 10.3%, largely driven by a decline in Pads and Tampons. In aggregate, the decrease in organic sales was related to a 10.4% decline in North America and a 9.1% decline in International sales.
Previous report
Feminine Care segment profit for the third quarter of fiscal 2025 was $4.5, a decrease of $2.1, or 31.8%. Organic segment profit decreased $1.7, or 25.7%, primarily driven by lower gross profit and was partially offset by lower marketing and SG&A expenses.
Previous report
Feminine Care segment profit for the first nine months of fiscal 2025 was $10.8, a decrease of $11.8, or 52.2%. Organic segment profit decreased $11.3, or 50.0%, primarily driven by lower gross profit and was partially offset by lower SG&A and marketing expenses.
Previous report
For the third quarter of fiscal 2025 and 2024, corporate expenses were $57.4, or 9.2%, of net sales, compared to $55.9, or 8.6% in the prior year quarter. For the first nine months of fiscal 2025, corporate expenses were $164.7, or 9.8%, of net sales, compared to $166.1, or 9.6% in the prior year period.
Previous report
During both the third quarter and first nine months of fiscal 2025, corporate expenses decreased primarily related to lower people costs.
Previous report
During the first nine months of fiscal 2025, we recorded a gain of $0.9 for an equity method investment. During both the third quarter and the first nine months of fiscal 2024, we recorded a loss of $3.1 on an equity method investment and a related note receivable as a result of a new contractual agreement.
Previous report
During the third quarter and first nine months of fiscal 2025, we incurred income of $0.1 and expense of $3.0, respectively, related to a shift in go to market strategy and SKU rationalization.
Previous report
During the third quarter and first nine months of fiscal 2025, we incurred costs of $1.2 and $1.6, respectively, related to government mandated incremental costs related to the bankruptcy of one of our foreign vendors.
Previous report
During the third quarter and first nine months of fiscal 2024, the Company incurred $2.7 and $8.0, respectively, in costs related to incremental material charges, labor and absorption as a result of the fire that occurred at our Wet Ones manufacturing plant in Sidney, Ohio on December 1, 2023.
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Reworded paragraphs (24)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited Condensed Consolidated Financial Statements and the accompanying notes included in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K filed with the SEC on November 14, 2024, as amended on November 21, 2024 (the “2024 Annual Report”). The following discussion may contain forward-looking statements that reflect our plans, estimates, and beliefs and involve risks, uncertainties, and assumptions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those discussed within “Forward-Looking Statements” below and in Item 1A. Risk Factors and “Forward-Looking Statements” included within our 2024 Annual Report or in our Quarterly Report on Form 10-Q for the period ended March 31, 2025.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited Condensed Consolidated Financial Statements and the accompanying notes included in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K filed with the SEC on November 18, 2025 (the “2025 Annual Report”). The following discussion may contain forward-looking statements that reflect our plans, estimates, and beliefs and involve risks, uncertainties, and assumptions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those discussed within “Forward-Looking Statements” below and in Item 1A. Risk Factors and “Forward-Looking Statements” included within our 2025 Annual Report.
Previous wording
This non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. We use this non-GAAP information internally to make operating decisions and believe it is helpful to investors because it allows more meaningful period-to-period comparisons of ongoing operating results. Given certain significant events, we view the use of non-GAAP measures that take into account the impact of these unique events as particularly valuable in understanding our underlying operational results and providing insights into future performance. The information can also be used to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by the types of items that are excluded. This non-GAAP information is also a component in determining management’s incentive compensation. Finally, we believe this information provides more transparency.
Current wording
This non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. We use this non-GAAP information, including adjusted gross margin, adjusted selling general and administrative (“SG&A”), adjusted operating income, adjusted EBIT (as defined below), adjusted effective tax rate, adjusted net earnings, and adjusted diluted net earnings, internally to make operating decisions and believe it is helpful to investors because it allows more meaningful period-to-period comparisons of ongoing operating results. We view the use of non-GAAP measures that exclude the impact of these unique events as particularly valuable in understanding our underlying operational results and providing insights into future performance. The information can also be used to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by the types of items that are excluded. This non-GAAP information is also a component in determining management’s incentive compensation. Finally, we believe this information provides more transparency.
Previous wording
•Segment profit will be impacted by fluctuations in translation and transactional foreign currency. The impact of currency was applied to segments using management’s best estimate.
Current wording
•Segment profit is impacted by fluctuations in translation and transactional foreign currency. The impact of currency was applied to segments using management’s best estimate.
Previous wording
The following is a summary of key results for the third quarter and first nine months of fiscal 2025, as compared to the corresponding periods in fiscal 2024. In addition to net sales, net earnings and earnings per share (“EPS”) for the periods presented were also impacted by certain costs or income, as described in the table below. The impact of these items on reported net earnings and EPS are provided as a reconciliation of net earnings and EPS to adjusted net earnings and adjusted diluted EPS, both of which are non-GAAP measures.
Current wording
The following is a summary of results from continuing operations for the first quarter of fiscal 2026, as compared to the corresponding periods in fiscal 2025. In addition to net sales, net loss from continuing operations and earnings per share (“EPS”) from continuing operations for the periods presented were also impacted by certain costs or income, as described in the table below. The impact of these items on reported net loss from continuing operations and EPS from continuing operations are provided as a reconciliation of net loss from continuing operations and EPS from continuing operations to adjusted net loss from continuing operations and adjusted diluted EPS from continuing operations, both of which are non-GAAP measures.
Previous wording
(1) EBIT is defined as earnings before Income taxes.
Current wording
(1) EBIT is defined as Loss before income taxes.
Previous wording
The following table presents changes in net sales for the third quarter and first nine months of fiscal 2025, as compared to the corresponding periods in fiscal 2024, and provides a reconciliation of organic net sales to reported amounts.
Current wording
The following table presents changes in net sales for the first quarter of fiscal 2026, as compared to the corresponding periods in fiscal 2025, and provides a reconciliation of organic net sales to reported amounts.
Previous wording
Gross profit was $268.5 during the third quarter of fiscal 2025, compared to $287.1 in the prior year quarter, a decrease of $18.6, or 6.5%. Gross margin as a percent of net sales for the third quarter of fiscal 2025 decreased 150-basis points, to 42.8%. Adjusted gross margin, as a percent of net sales, decreased 150-basis points. Productivity savings of approximately 270-basis points were more than offset by 180-basis points of core inflation and volume absorption, approximately 110-basis points of negative foreign currency, 90-basis points of increased promotional levels (net of pricing) and 40-basis points of unfavorable mix and other.
Current wording
Gross profit was $161.0 during the first quarter of fiscal 2026, compared to $172.5 in the prior year quarter, a decrease of $11.5, or 6.7%. Gross margin as a percent of net sales for the first quarter of fiscal 2026 decreased 350-basis points, to 38.1%. Adjusted gross margin, as a percent of net sales, decreased 210-basis points. Productivity savings of approximately 240-basis points and favorable currency movements were more than offset by 450-basis points of core inflation, tariffs, volume absorption and 75-basis points of unfavorable mix and other.
Previous wording
Selling, general and administrative (“SG&A”) expense was $104.4, or 16.6%, of net sales in the third quarter of fiscal 2025 compared to $110.1, or 17.0%, of net sales in the prior year quarter. Adjusted SG&A was 16.2% of net sales, flat to the prior year quarter, which was primarily driven by lower incentive compensation expense and favorable currency impacts, partly offset by higher consulting expenses and the impact of lower net sales.
Current wording
Selling, general and administrative (“SG&A”) expense was $102.4, or 24.2%, of net sales in the first quarter of fiscal 2026 compared to $99.6, or 24.0%, of net sales in the prior year quarter. Adjusted SG&A was 23.7% of net sales, flat to the prior year quarter, which was primarily driven by higher people costs and unfavorable currency impacts, partly offset by lower consulting and corporate expenses.
Previous wording
Advertising and sales promotion (“A&P”) expense for the third quarter of fiscal 2025 was $80.4, an increase of $3.8, or 5.0%, compared to $76.6 in the prior year quarter. A&P was 12.8% of net sales, compared to 11.8% in the prior year quarter.
Current wording
Advertising and sales promotion (“A&P”) expense for the first quarter of fiscal 2026 was $45.6, a decrease of $0.5, or 1.1%, compared to $46.1 in the prior year quarter. A&P was 10.8% of net sales, compared to 11.1% in the prior year quarter.
Previous wording
Research and development (“R&D”) expense for the third quarter of fiscal 2025 was $14.0, a decrease of $0.6, or 4.1%, compared to $14.6 in the prior year quarter. As a percentage of net sales, R&D expense was 2.2% in the third quarter of fiscal 2025, compared to 2.3% in the prior year quarter.
Current wording
Research and development (“R&D”) expense for the first quarter of fiscal 2026 was $13.8, an increase of $0.4, or 3.0%, compared to $13.4 in the prior year quarter. As a percentage of net sales, R&D expense was 3.3% in the first quarter of fiscal 2026, compared to 3.2% in the prior year quarter.
Previous wording
In fiscal 2025, the Company continues to take specific actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency through restructuring actions, including certain operational and organizational steps designed to streamline the Company’s operations and supply chain by consolidating its current Mexico operations in Obregon and Mexico City into a single facility in Aguascalientes, Mexico. As a result of these actions, we expect to incur pre-tax charges of approximately $44 in fiscal 2025. We incurred $16.0 and $3.1 during the third quarter of fiscal 2025 and 2024, respectively, and $32.4 and $13.1 during the first nine months of fiscal 2025 and 2024, respectively.
Current wording
In fiscal 2026, the Company continues to take specific actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency through restructuring actions, including streamlining the Company’s operations and supply chain by consolidating its Mexico facilities and Wet Shave operations. As a result of these actions, we expect to incur pre-tax charges of approximately $65 in fiscal 2026. We incurred $18.1 and $4.1 during the first three months of fiscal 2026 and 2025, respectively. Other restructuring related charges of $5.8 and $0.5 associated with the operation and supply chain actions were recorded in costs of products sold and selling, general and administrative expenses, respectively, during the first quarter of fiscal 2026.
Previous wording
Interest expense associated with debt for the third quarter of fiscal 2025 was $19.4, an increase of $0.6, or 3.2%, compared to $18.8 in the prior year quarter. The increase in interest expense was the result of higher borrowing levels on the Company’s U.S. Revolving Credit Facility.
Current wording
Interest expense associated with debt for the first quarter of fiscal 2026 was $19.3, an increase of $0.5, or 2.7%, compared to $18.8 in the prior year quarter. The increase in interest expense was the result of higher borrowing levels on the Company’s U.S. Revolving Credit Facility.
Previous wording
Other (income) expense, net, was income of $2.9 in the third quarter of fiscal 2025, compared to expense of $1.4 in the prior year quarter. Currency hedge and remeasurements gains were $1.1 million in the current quarter, compared to a gain of $3.3 million in the prior year quarter. The current year quarter included $2.7 of other project gains, compared to the prior year quarter which included a loss on investment of $3.1. Adjusted other (income) expense, net was income of $0.2 compared to income of $1.7 in the prior year quarter.
Current wording
Other (income) expense, net, was $(1.3) compared to $3.2 in the prior year quarter. Currency hedge and remeasurement losses were $0.9 in the current quarter, compared to losses of $2.0 in the prior year quarter. The current year quarter included $0.5 of other project gains, compared to $1.8 of expense in the prior year quarter. Adjusted other (income) expense, net was $0.7 compared to $2.3 in the prior year quarter.
Previous wording
The effective tax rate for the third quarter of fiscal 2025, was 21.7%, compared to 21.6% in the prior year quarter. The fiscal 2025 effective tax rate reflects the impact of less favorable discrete items compared to the prior year quarter. On an adjusted basis, the effective tax rate was 22.4% for the third quarter ended June 30, 2025, and 21.2% in the prior year quarter.
Current wording
The continuing operations effective tax rate for the first quarter of fiscal 2026, was 20.9%, compared to 20.6% in the prior year quarter. Both periods reflect a tax benefit on a loss. The fiscal 2026 effective tax rate reflects more favorable discrete and unusual items resulting in a larger tax benefit compared to fiscal 2025. On an adjusted basis, the effective tax rate was 34.7% (tax benefit on a loss), up from the prior year quarter adjusted effective tax rate of 7.8% (tax benefit on a loss).
Previous wording
The following tables present changes in segment net sales and segment profit for the third quarter and first nine months of fiscal 2025, compared to the corresponding period in fiscal 2024, and provide a reconciliation of organic segment net sales and organic segment profit to reported amounts. For a reconciliation of segment profit to earnings before income taxes, refer to Note 15 of Notes to Condensed Consolidated Financial Statements.
Current wording
The following tables present changes in segment net sales and segment profit (loss) for the first quarter of fiscal 2026, compared to the corresponding period in fiscal 2025, and provide a reconciliation of organic segment net sales and organic segment profit (loss) to reported amounts. For a reconciliation of segment profit (loss) to Loss from continuing operations before income taxes, refer to Note 17 of Notes to Condensed Consolidated Financial Statements.
Previous wording
Wet Shave segment profit for the first nine months of fiscal 2025 was $137.3, a decrease of $4.4, or 3.1%, and inclusive of a $12.0, or 8.5%, unfavorable impact from currency. Organic segment profit increased $7.6, or 5.4%, as higher gross margins were partly offset by higher marketing expenses.
Current wording
Wet Shave segment profit for the first quarter of fiscal 2026 was $42.2, a decrease of $4.4, or 9.4%, and inclusive of a $4.1, or 8.8%, favorable impact from currency. Organic segment profit decreased $8.5 million, or 18.2%, as lower gross margins were partly offset by lower marketing and SG&A expenses.
Previous wording
Historically, we have generated, and expect to continue to generate, favorable cash flows from operations. Our cash flows are affected by the seasonality of our Sun Care businesses, typically resulting in higher net sales and increased cash generated in the second and third quarters of each fiscal year. We believe our cash on hand, cash flows from operations and borrowing capacity under the U.S. Revolving Credit Facility will be sufficient to satisfy our future working capital requirements, interest payments, R&D activities, capital expenditures, and other financing requirements for at least the next 12 months. We will continue to monitor our cash flows, spending and liquidity needs. For more information on the U.S. Revolving Credit Facility, see Note 10 to the Notes To Condensed Consolidated Financial Statements.
Current wording
Historically, we have generated, and expect to continue to generate, favorable cash flows from operations. Our cash flows are affected by the seasonality of our Sun Care businesses, typically resulting in higher net sales and increased cash generated in the second and third quarters of each fiscal year. We believe our cash on hand, including remaining proceeds from the sale of our Feminine Care segment, cash flows from operations and borrowing capacity under the U.S. Revolving Credit Facility will be sufficient to satisfy our future working capital requirements, interest payments, R&D activities, capital expenditures, and other capital requirements for at least the next 12 months. We will continue to monitor our cash flows, spending and liquidity needs. For more information on the U.S. Revolving Credit Facility and our other debt, see Note 11 to the Notes To Condensed Consolidated Financial Statements and Note 12 of the Notes to Consolidated Financial Statements in our 2025 Annual Report.
Previous wording
Cash flow provided by operating activities was $44.3 during the first nine months of fiscal 2025, compared to $157.3 during the prior year period. The increase in cash used for operating activities was largely driven by changes in net working capital and lower earnings.
Current wording
Cash flow used for operating activities was $125.9 during the first three months of fiscal 2026, compared to $115.6 during the prior year quarter. The increase in cash used for operating activities was largely driven by changes in net working capital and lower earnings.
Previous wording
Net cash used for investing activities was $45.3 during the first nine months of fiscal 2025, compared to $36.9 during the prior year period. The increase in cash used was primarily due to an increase in capital expenditures, which were $49.4 during the first nine months of fiscal 2025, compared to $30.6 in the prior year period.
Current wording
Net cash used for investing activities was $9.9 during the first three months of fiscal 2026, compared to $15.7 during the prior year quarter. The decrease in cash used was primarily due to a decrease in capital expenditures, which were $11.6 during the first three months of fiscal 2026, compared to $16.8 in the prior year quarter.
Previous wording
During the first nine months of fiscal 2025, we repurchased 2.8 shares of our common stock for $90.2. We have 0.2 shares remaining under the 2018 Share Repurchase Plan as of June 30, 2025. Future share repurchases, if any, would be made in the open market, privately negotiated transactions or otherwise permitted, and in such amounts and at such times as the Company deems appropriate based upon prevailing market conditions, business needs and other factors. For more information, see Note 12 of the Notes to Condensed Consolidated Financial Statements.
Current wording
On November 13, 2025, the Board approved an authorization to repurchase for up to $100.0, superseding the previous share repurchase authorization from January 2018, when the Board approved an authorization to repurchase up to 10.0 shares of the Company's common stock. The full $100.0 authorized by the Board in November 2025 is available for future share repurchases. Any future share repurchases, if any, would be made in the open market, privately negotiated transactions or otherwise permitted, and in such amounts and at such times as the Company deems appropriate based upon prevailing market conditions, business needs and other factors. During the first three months of fiscal 2026, we did not repurchase any shares under the share repurchase plan. For more information, see Note 14 of the Notes to Condensed Consolidated Financial Statements.
Previous wording
Dividend activity for the nine months ended June 30, 2025 was as follows:
Current wording
Dividend activity for the three months ended December 31, 2025 was as follows:
Previous wording
On August 5, 2025, the Board declared a quarterly cash dividend of $0.15 per common share for the third fiscal quarter of 2025. The dividend will be payable on October 8, 2025 to shareholders of record as the close of business on September 4, 2025.
Current wording
On February 5, 2026, the Board declared a quarterly cash dividend of $0.15 per common share for the first fiscal quarter of 2026. The dividend will be payable on April 8, 2026 to shareholders of record as the close of business on March 6, 2026.
Previous wording
Dividends declared during the nine months ended June 30, 2025 totaled $21.7. Payments made for dividends during the nine months ended June 30, 2025 totaled $22.4.
Current wording
Dividends declared during the three months ended December 31, 2025 totaled $7.0. Payments made for dividends during the three months ended December 31, 2025 totaled $7.4.
Previous wording
As of June 30, 2025, we had outstanding borrowings of $130.0 under the U.S. Revolving Credit Facility, which matures in 2029. As of June 30, 2025, future minimum repayments of fixed debt are: $750.0 in fiscal 2028 and $500.0 in fiscal 2029.
Current wording
As of December 31, 2025, we had outstanding borrowings of $277.0 under the U.S. Revolving Credit Facility, which matures in 2029. As noted above, following the closing of the sale of the Feminine Care segment, we repaid all outstanding borrowings under the U.S. Revolving Credit Facility. As of December 31, 2025, future minimum repayments of fixed debt are: $750.0 in fiscal 2028 and $500.0 in fiscal 2029.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•Additionally, we utilize “adjusted” non-GAAP measures, including adjusted gross margin, adjusted selling general and administrative (“SG&A”), adjusted operating income, adjusted effective tax rate, adjusted net earnings, and adjusted diluted net earnings per share internally to make operating decisions.