EDGEWELL PERSONAL CARE Co
For the period ended Mar 31, 2026. Filed May 6, 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.
Mar 31, 2026 · Filed May 6, 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 2025-12-31; filed 2026-02-09.
0001628280-26-006288
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001628280-26-031376
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 93 previous paragraphs and 119 current paragraphs.
54 unchanged; 33 reworded; 30 added; 6 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 12 previous and 14 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 (30)
Current report
Recent Developments
Current report
On February 20, 2026 the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) by the executive branch were unlawful. As a result of this ruling, we may be eligible for a refund of IEEPA tariffs previously paid on imported goods.
Current report
The Company is evaluating the applicability of the court decisions and subsequent administrative process to its import entries, including the effect of procedural requirements under U.S. customs laws (including liquidation finality and the timing of administrative protests) and the scope and timing of the emerging administrative refund process. However, the ultimate availability, timing, and amount of any potential refunds of such tariffs remain highly uncertain and are subject to further legal, regulatory, and administrative developments. We will continue to monitor changes to the import and export policies of the U.S. and other countries that could impact our financial position, results of operations and cash flows.
Current report
Second Quarter of Fiscal 2026
Current report
•Net salesin the second quarter of fiscal 2026 increased $2.9, or 0.6%, to $519.5, as compared to the prior year quarter. Organic net sales decreased $12.6, or 2.4%. Organic growth in International markets was 1.0%, largely driven by volume growth in Wet Shave and favorable pricing in Wet Shave and Sun Care. Organic sales declined in North America by 4.8%, driven primarily by lower volumes in Wet Shave and Sun Care, partially offset by volume growth in Grooming.
Current report
First Six Months of Fiscal 2026
Current report
•Net (loss) earnings from continuing operations in the first six months of fiscal 2026 were $(25.2), as compared to $10.7 in the prior year period. On an adjusted basis, net earnings from continuing operations for the second quarter of fiscal 2026 were $20.2, as compared to $28.2 in the prior year period. Adjusted net earnings decreased primarily due to lower gross profit and higher operating expenses, partially offset by higher sales and lower interest expense.
Current report
•Diluted net (loss) earnings per share from continuing operations during the first six months of fiscal 2026 were $(0.54), as compared to $0.22 in the prior year period. On an adjusted basis, diluted net earnings per share from continuing operations during the first six months of fiscal 2026 were $0.44, as compared to $0.59 in the prior year period.
Current report
For the first six months of fiscal 2026, net sales increased $10.6, or 1.1%, to $942.3, including a $25.1, or 2.7%, favorable impact from currency movements, as compared to the prior period. Organic net sales decreased $14.5, or 1.6%. Organic sales in North America declined 2.6% driven primarily by lower volumes in Wet Shave and Skin Care, partially offset by volume growth in Grooming and Sun Care. Organic sales in International markets declined 0.3%, largely driven by lower volumes in Sun Care and Grooming, partially offset by favorable pricing in Wet Shave.
Current report
Gross profit was $216.9 during the second quarter of fiscal 2026, compared to $236.9 in the prior year quarter, a decrease of $20.0, or 8.4%. Gross margin as a percent of net sales for the second quarter of fiscal 2026 decreased 410-basis points, to 41.8%. Adjusted gross margin, as a percent of net sales, decreased 310-basis points to 43.4% in the quarter. Productivity savings of approximately 220-basis points were more than offset by 420-basis points of core inflation and tariffs, 70-basis points of unfavorable mix and promotional levels (net of pricing), and 40-basis points of unfavorable currency movements.
Current report
Selling, general and administrative (“SG&A”) expense was $213.4, or 22.6%, of net sales in the first six months of fiscal 2026 compared to $202.4, or 21.7%, of net sales in the prior year period. Adjusted SG&A was 21.7% of net sales, compared to 21.4% in the prior year quarter, which was primarily driven by higher outside services costs and corporate expenses, partially offset by lower people costs.
Current report
Advertising and sales promotion (“A&P”) expense for the first six months of fiscal 2026 was $104.2, a decrease of $1.8, or 1.7%, compared to $106.0 in the prior year period. A&P was 11.1% of net sales, compared to 11.4% in the prior year quarter.
Current report
Research and development (“R&D”) expense for the first six months of fiscal 2026 was $28.7, an increase of $1.9, or 7.1%, compared to $26.8 in the prior year period. As a percentage of net sales, R&D expense was 3.0% in the first six months of fiscal 2026, compared to 2.9% in the prior year period.
Current report
Other restructuring related charges of $8.7 and $14.5 associated with the consolidation of Wet Shave operations and supply chain actions were recorded in costs of products sold in the second quarter and first six months of fiscal 2026, respectively, and $0.3 and $0.8 were recorded in selling, general and administrative expense in the second quarter and first six months of fiscal 2026, respectively. No charges were incurred in the comparative prior period in costs of products sold and SG&A related to these actions.
Current report
Interest expense associated with debt for the first six months of fiscal 2026 was $37.2, a decrease of $1.8, or 4.6%, compared to $39.0 in the prior year period. The decrease in interest expense was the result of lower borrowing levels on the Company’s U.S. Revolving Credit Facility as a result of the paydown of the revolving credit facility utilizing cash proceeds from the divestiture of the Feminine Care business.
Current report
Other (income) expense, net, was $(8.7) compared to $0.6 in the prior year period. The current year quarter included $6.7 of TSA income. Currency hedge and remeasurement losses were $1.7 in the current period, compared to gains of $0.4 in the prior year period. The current year period included $0.7 of other project gains, compared to $1.2 of expense in the prior year quarter. Adjusted other (income) expense, net was $(6.5) compared to $0.3 in the prior year period.
Current report
Income Taxes from Continuing Operations
Current report
Wet Shave net sales for the second quarter of fiscal 2026 were $294.1, an increase of $8.6, or 3.0%, as compared to the prior year quarter, including a $10.7, or 3.7%, favorable impact from currency. Organic net sales decreased $2.1, or 0.7%, as International markets grew 3.6%, primarily reflecting higher volumes, while North America declined 6.0%, primarily reflecting lower volumes.
Current report
Wet Shave net sales for the first six months were $585.4, an increase of $5.4, or 0.9%, as compared to the prior year period, including a $19.1, or 3.3%, favorable impact from currency. Organic net sales decreased $13.7, or 2.4%, as International markets grew 1.4%, primarily reflecting favorable pricing, while North America declined approximately 7.1%, primarily reflecting lower volumes.
Current report
Wet Shave segment profit for the second quarter of fiscal 2026 was $33.7, a decrease of $12.9, or 27.7%, and inclusive of a $0.7, or 1.5%, unfavorable impact from currency. Organic segment profit decreased $12.2, or 26.2%, driven by lower gross margins and higher SG&A expense, partially offset by lower marketing expense.
Current report
Sun and Skin Care net sales for the second quarter of fiscal 2026 decreased $5.7, or 2.5%, as compared to the prior year quarter, including a favorable impact from foreign currency of $4.8, or 2.0%. Organic net sales decreased $10.5, or 4.5%, driven by an 8.4% decline in Sun Care. The Sun Care decline primarily reflects lower volumes, as expected, due to the pull-forward of Sun Care orders into the first quarter. Grooming increased 6.3%, driven by significant volume growth in Cremo.
Current report
Sun and Skin Care net sales for the first six months increased $5.2, or 1.5%, including a favorable impact from foreign currency of $6.0, or 1.6%. Organic net sales decreased $0.8, or 0.1%, driven by strong performance in Grooming and Sun Care in North America, partly offset by declines in International Sun Care.
Current report
Sun and Skin Care segment profit for the second quarter of fiscal 2026 was $47.6, a decrease of $3.2, or 6.3%, as compared to the prior year quarter, including a favorable impact from foreign currency of $1.2, or 2.4%. Organic segment profit decreased $4.4, or 8.7%, driven by driven primarily by lower gross profit.
Current report
Sun and Skin Care segment profit for the first six months of fiscal 2026 was $44.0, a decrease of $3.4, or 7.2%, including a favorable impact from foreign currency of $1.5, or 3.1%. Organic segment profit decreased $4.9, or 10.3%, driven by higher marketing expenses and lower gross margins.
Current report
For the second quarter of fiscal 2026, general corporate and other expenses were $148.9, or 15.8%, of net sales, as compared to $121.9, or 13.1% in the prior year quarter.
Current report
During the second quarter and first six months of fiscal 2026, we recorded TSA income of $6.7 in Interest and other expense, net.
Current report
Other Matters
Current report
On February 20, 2026 the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) by the executive branch are not lawful, but did not provide guidance on how importers may claim refunds of IEEPA tariffs previously paid. On March 4, 2026, the Court of International Trade (CIT) issued an additional ruling that importers that paid tariffs under IEEPA are due refunds and ordered U.S. Customs and Border Protection (CBP) to begin the refund process for all importers who were subject to IEEPA duties.
Current report
As of March 31, 2026, the Company has not recognized an asset related to the potential refund of IEEPA tariffs paid. The ultimate availability, timing and amount of any potential refunds of such tariffs is highly uncertain and are subject to further legal, regulatory and administrative developments. The Company will continue to evaluate new information and will recognize the refund when the requirements under ASC 450, Contingencies, have been met.
Current report
In the three and six months ended, March 31, 2026, we recorded a $4.7 charge related to an offer to settle certain claims and disputes in connection with a former contract manufacturing agreement.
Removed paragraphs (6)
Previous report
First Quarter of Fiscal 2026
Previous report
Income Tax Benefit on Continuing Operations
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Reworded paragraphs (33)
Previous wording
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 wording
On February 2, 2026, we closed the transaction and received proceeds of approximately $340 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. The former Feminine Care segment’s results are presented as discontinued operations on a retrospective basis for the three and six months period ended March 31, 2026 and 2025.
Previous 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.
Current wording
The following is a summary of results from continuing operations for the second quarter of fiscal 2026, as compared to the corresponding period in fiscal 2025. In addition to net sales, net income 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 income from continuing operations and EPS from continuing operations are provided as a reconciliation of net income from continuing operations and EPS from continuing operations to adjusted net income from continuing operations and adjusted diluted EPS from continuing operations, both of which are non-GAAP measures.
Previous wording
•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 wording
•Net earnings from continuing operations in the second quarter of fiscal 2026 were $4.0, as compared to $20.8 in the prior year quarter. On an adjusted basis, net earnings from continuing operations for the second quarter of fiscal 2026 were $27.8, as compared to $32.9 in the prior year quarter. Adjusted net earnings decreased primarily due to lower gross profit and higher operating expenses, partially offset by higher sales and lower interest expense.
Previous wording
•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 wording
•Diluted net earnings per share from continuing operations during the second quarter of fiscal 2026 were $0.09, as compared to $0.43 in the prior year quarter. On an adjusted basis, diluted net earnings per share from continuing operations during the second quarter of fiscal 2026 were $0.60, as compared to $0.69 in the prior year quarter.
Previous wording
•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 wording
•Net salesin the first six months of fiscal 2026 increased $10.6, or 1.1%, to $942.3, as compared to the prior year period. Organic net sales decreased $14.5, or 1.6%. Organic sales in North America declined 2.6% driven primarily by lower volumes in Wet Shave and Skin Care, partially offset by volume growth in Grooming and Sun Care. Organic sales in International markets declined 0.3% largely driven by lower volumes in Sun Care and Grooming, partially offset by favorable pricing in Wet Shave.
Previous 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.
Current wording
The following table presents changes in net sales for the first six months and second 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
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 wording
For the second quarter of fiscal 2026, net sales increased $2.9, or 0.6%, to $519.5, including a $15.5, or 3.0%, favorable impact from currency movements, as compared to the prior year quarter. Organic net sales decreased $12.6, or 2.4%. Organic growth in International markets was 1.0%, largely driven by volume growth in Wet Shave and favorable pricing in Wet Shave and Sun Care. Organic sales declined in North America by 4.8%, driven primarily by lower volumes in Wet Shave and Sun Care, partially offset by volume growth in Grooming.
Previous 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.
Current wording
Gross profit was $377.9 during the first six months of fiscal 2026, compared to $409.4 in the prior year period, a decrease of $31.5, or 7.7%. Gross margin as a percent of net sales for the first six months of fiscal 2026 decreased 380-basis points, to 40.1%. Adjusted gross margin, as a percent of net sales, decreased 270-basis points. Productivity savings of approximately 230-basis points were more than offset by approximately 430-basis points of core inflation, tariffs, and volume absorption and 75-basis points of unfavorable mix and promotional levels (net of pricing).
Previous 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.
Current wording
Selling, general and administrative (“SG&A”) expense was $111.0, or 21.4%, of net sales in the second quarter of fiscal 2026 compared to $102.8, or 19.9%, of net sales in the prior year quarter. Adjusted SG&A was 20.1% of net sales, compared to 19.6% in the prior year quarter, which was primarily driven by higher consulting and corporate expenses and unfavorable currency impacts, partly offset by lower people costs.
Previous 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.
Current wording
Advertising and sales promotion (“A&P”) expense for the second quarter of fiscal 2026 was $58.6, a decrease of $1.3, or 2.2%, compared to $59.9 in the prior year quarter. A&P was 11.3% of net sales, compared to 11.6% in the prior year quarter.
Previous 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.
Current wording
Research and development (“R&D”) expense for the second quarter of fiscal 2026 was $14.9, an increase of $1.5, or 11.2%, compared to $13.4 in the prior year quarter. As a percentage of net sales, R&D expense was 2.9% in the second quarter of fiscal 2026, compared to 2.6% in the prior year quarter.
Previous 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.
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 $90 in fiscal 2026. We incurred $14.0 and $11.8 of restructuring and related charges in the second quarter of fiscal 2026 and 2025, respectively, and $32.1 and $15.9 during the first six months of fiscal 2026 and 2025, respectively.
Previous 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.
Current wording
Interest expense associated with debt for the second quarter of fiscal 2026 was $17.9, a decrease of $2.3, or 11.4%, compared to $20.2 in the prior year quarter. The decrease in interest expense was the result of lower borrowing levels on the Company’s U.S. Revolving Credit Facility as a result of the paydown of the revolving credit facility utilizing cash proceeds from the divestiture of the Feminine Care business.
Previous 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.
Current wording
Other (income) expense, net, $(7.4) compared to $(2.6) in the prior year quarter. The current year quarter included $6.7 of Transition Services Agreement (“TSA”) income. Additionally, the current year quarter included $0.2 of other project gains, compared to $0.6 in the prior year quarter. Currency hedge and remeasurement losses were $0.9 in the current quarter, compared to gains of $2.4 in the prior year quarter. Adjusted other (income) expense, net was $(7.2) compared to $(2.0) in the prior year quarter.
Previous 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).
Current wording
The continuing operations effective tax rate for the first six months of fiscal 2026, was 13.1%, as compared to 42.6% in the prior year period. The current year period reflects a tax benefit on a loss. The fiscal 2026 effective tax rate reflects more favorable discrete and unusual items resulting in a tax benefit compared to fiscal 2025. On an adjusted basis, the effective tax rate was 24.9% down from the prior year period adjusted effective tax rate of 33.6%.
Previous wording
(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 wording
(Loss) earnings from discontinued operations, net of tax includes the results of the Feminine Care business.
Previous wording
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 wording
The loss of $14.6 in the second quarter of fiscal 2026 primarily includes the impact of tax related charges from the completion of the Feminine Care Divestiture. The loss of $51.1 in the first six months of 2026 also includes the impact of the goodwill impairment charge of $37.4 recorded during the first quarter.
Previous 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.
Current wording
The following tables present changes in segment net sales and segment profit for the second quarter and first six months of fiscal 2026, compared to the corresponding period in fiscal 2025, and provide a reconciliation of organic segment net sales and organic segment profit to reported amounts. For a reconciliation of segment profit to Income (loss) from continuing operations before income taxes, refer to Note 17 of Notes to Condensed Consolidated Financial Statements.
Previous wording
Our operating model includes some shared business functions across segments, including product warehousing and distribution, transaction processing functions and, in most cases, a combined sales force and management teams. We apply a fully allocated cost basis in which shared business functions are allocated between segments.
Current wording
Our operating model includes some shared business functions across segments, including product warehousing and distribution, transaction processing functions and, in most cases, a combined sales force and management teams. We apply a fully allocated cost basis in which shared business functions are allocated between segments. Certain indirect expenses for corporate overhead costs previously allocated to the Fem Care segment have not been reallocated to the Wet Shave or Sun and Skin Care segments.
Previous 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.
Current wording
Wet Shave segment profit for the first six months was $75.9, a decrease of $17.3, or 18.6%, and inclusive of a $3.4, or 3.6%, favorable impact from currency. Organic segment profit decreased $20.7, or 22.2%, as lower gross margins and higher SG&A expense were primarily offset by lower marketing expenses.
Previous wording
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 wording
During the second quarter and first six months of fiscal 2026, corporate expenses increased primarily related to indirect corporate overhead costs previously allocated to the Feminine Care segment.
Previous wording
During the first quarter of fiscal 2026, we recorded a charge of $1.0 related to a legal matter.
Current wording
During the second quarter of fiscal 2026, we recorded a charge of $4.7 related to legal matters.
Previous wording
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 wording
During the first six months 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.
Previous wording
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 wording
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 U.S. Revolving Credit Facility. 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 of cash taxes to be paid in fiscal 2026 on the tax gain from the sale.
Previous 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.
Current wording
Cash flow used for operating activities was $71.6 during the first six months of fiscal 2026, compared to $70.5 during the prior year period. The increase in cash used for operating activities was largely driven by lower earnings, partially offset by changes in net working capital.
Previous 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.
Current wording
Net cash proceeds provided by investing activities was $315.1 during the first six months of fiscal 2026, compared to net cash used of $33.0 during the prior year period. The increase in cash provided by investing activities was primarily related to proceeds received from the sale of our Feminine Care segment of $338.9 and a decrease in capital expenditures, which were $25.6 during the first six months of fiscal 2026, compared to $33.9 in the prior year period.
Previous wording
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.
Current wording
Net cash used by financing activities was $167.4 during the first six months of fiscal 2026, compared to $72.5 cash provided by financing activities in the prior year period. During the first six months of fiscal 2026, we had net payments of $140.0 under the U.S. Revolving Credit Facility, compared to net proceeds of $157.0 in the prior year period. Dividend payments totaled $14.5 in the first six months of fiscal 2026, compared to $15.2 in the prior year period. We had $15.8 share repurchases in the first six months of fiscal 2026, compared to $65.7 in the prior year period.
Previous 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.
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. 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 six months of fiscal 2026, we repurchased 0.7 shares at a total cost of 15.8. $84.9 remains available for repurchase in the future under the Board’s authorization. For more information, see Note 14 of the Notes to Condensed Consolidated Financial Statements.
Previous wording
Dividend activity for the three months ended December 31, 2025 was as follows:
Current wording
Dividend activity for the six months ended March 31, 2026 was as follows:
Previous 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.
Current wording
On May 6, 2026, the Board declared a quarterly cash dividend of $0.15 per common share for the second fiscal quarter of 2026. The dividend will be payable on July 9, 2026 to shareholders of record as the close of business on June 10, 2026.
Previous 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.
Current wording
Dividends declared during the six months ended March 31, 2026 totaled $14.6. Payments made for dividends during the six months ended March 31, 2026 totaled $14.5.
Previous 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.
Current wording
As of March 31, 2026, we had no outstanding borrowings under our 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 March 31, 2026, future minimum repayments of fixed debt are: $750.0 in fiscal 2028 and $500.0 in fiscal 2029.
Previous wording
Our critical accounting estimates are fully described in our 2025 Annual Report. The preparation of these financial statements requires us to make estimates and assumptions. These estimates and assumptions can be subjective and complex, and consequently, actual results could differ from those estimates. There have been no significant changes to our critical accounting estimates since September 30, 2025.
Current wording
Our critical accounting estimates are fully described in our 2025 Annual Report. The preparation of these financial statements requires us to make estimates and assumptions. These estimates and assumptions can be subjective and complex, and consequently, actual results could differ from those estimates. As of March 31, 2026 there have been no significant changes to our critical accounting estimates disclosed in our 2025 Annual Report.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
(1) EBIT is defined as Earnings before income taxes.
Current report — wording carried from elsewhere
The continuing operations effective tax rate for the second quarter of fiscal 2026, was 49.7%, as compared to 33.7% in the prior year quarter. The fiscal 2026 effective tax rate reflects more unusual items resulting in larger tax expense compared to fiscal 2025. On an adjusted basis, the effective tax rate was 27.9%, down from the prior year quarter adjusted effective tax rate of 30.9%.