Edgewell Personal Care misses Q3 expectations, lowers guidance

Published 05/08/2025, 11:10
 Edgewell Personal Care misses Q3 expectations, lowers guidance

Investing.com -- Edgewell Personal Care Company (NYSE:EPC) on Tuesday reported third-quarter adjusted earnings of $0.92 per share, falling short of analyst expectations of $1.00, as challenging weather conditions severely impacted its Sun Care business.

Revenue came in at $627.2 million, missing the consensus estimate of $655.17 million and declining 3.2% from the same period last year.

The company’s organic net sales decreased 4.2% year-over-year, primarily due to weak Sun Care seasons in North America and certain Latin American markets.

North American sales declined 8.0% organically, driven by volume declines and increased promotional activity across Sun Care, Wet Shave, and Feminine Care segments. Meanwhile, international markets showed resilience with 2.2% organic growth.

Edgewell lowered its full-year outlook, now expecting adjusted EPS of approximately $2.65, down from its previous guidance of $2.85-$3.05 and below analyst consensus of $2.90.

The company also revised its organic net sales forecast, now anticipating a decrease of approximately 1.3% compared to its previous projection of flat to 1% growth.

"This was a challenging quarter, with our top and bottom-line performance falling below expectations, significantly impacted by very weak Sun Care seasons in North America and certain Latin American markets," said Rod Little, Edgewell’s President and CEO.

"Furthermore, the operating environment remains challenging with both tariffs and foreign exchange contributing to full-year profit headwinds."

Adjusted gross margin decreased 150 basis points to 42.8%, with currency movements accounting for approximately 110 basis points of the decline.

The company’s adjusted operating income fell to $75.1 million, or 12.0% of net sales, compared to $94.8 million, or 14.6% of net sales, in the prior year quarter.

During the quarter, Edgewell returned $31.7 million to shareholders through $24.5 million in share repurchases and $7.2 million in dividends.

The company’s Board of Directors declared a quarterly cash dividend of $0.15 per share.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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