Edgewell Personal Care Company manufactures and markets personal care products worldwide through three segments: Wet Shave, Sun and Skin Care, and Feminine Care. Its Wet Shave segment offers razor systems, disposable shave products, and shave preparation products under brands such as Schick, Wilkinson Sword, Edge, Skintimate, Billie, and Shave Guard. The Sun and Skin Care segment provides sun care, antibacterial hand wipes, and skin care products under brands including Banana Boat, Hawaiian Tropic, Wet Ones, Bulldog, Jack Black, and Cremo. The Feminine Care segment markets tampons and pads under brands such as Playtex, o.b., Stayfree, and Carefree. The company distributes through direct sales and distributors, was formerly known as Energizer Holdings, Inc., changed its name to Edgewell Personal Care Company in June 2015, was founded in 1772, and is headquartered in Shelton, Connecticut.
Moody's Ratings has downgraded Edgewell Personal Care Co's corporate family rating to B1 from Ba3, citing elevated leverage, modest free cash flow and persistent profitability headwinds. The agency revised Edgewell's outlook to stable from negative, signaling the consumer products maker may be reaching an operational turning point after a period of heavy restructuring. The downgrade reflects a balance sheet burdened by debt-to-EBITDA leverage that reached 9.2x on a Moody's-adjusted basis, driven higher by restructuring expenses and costs linked to consolidating its wet shave manufacturing network. While management affirmed its full-year guidance after returning to modest organic sales growth in North America during the third quarter of 2026, credit analysts expect leverage to remain elevated in the 6x range through 2027 even as earnings recover. Edgewell's portfolio reshaping, headlined by the February 2026 sale of its lower-margin Feminine Care division, has provided a substantial liquidity cushion, though stranded costs continue to weigh on short-term profitability, and Moody's called ongoing dividend payments and share repurchases aggressive financial policy given current debt levels. The stable outlook hinges on profitability expanding as transformation initiatives take hold, with an upgrade requiring debt-to-EBITDA leverage below 4.5x alongside sustained organic revenue growth, while a failure to bring leverage below 5.5x could trigger further negative rating actions.
EPC · Capital · Negative Moody's downgraded Edgewell's corporate family rating to B1 from Ba3 on elevated leverage (9.2x), modest free cash flow and profitability headwinds.
Edgewell Q3 Sales Rise 1.7% But Operating Income Halves
Edgewell Personal Care reported third quarter fiscal 2026 results for the period ended June 30, with net sales of $570.1 million, up 1.7% from a year ago, and organic net sales rising 1.1%. North America organic sales grew 3.0% on volume gains across Sun, Skin Care and Grooming, while the Sun and Skin Care category posted net sales up 5.7% and organic sales up 5.0%. Adjusted EPS held at $0.72, matching the prior year and beating company guidance, and adjusted EBITDA of $78.9 million came in ahead of plan, with interest expense falling to $16.7 million from $19.4 million after the Feminine Care divestiture paid down the revolving credit facility. Margins still took a hit, as gross margin fell 210 basis points to 42.5%, advertising rose to 14.6% of sales from 13.6%, and $24.5 million in restructuring charges helped push operating income down to $25.0 million from $45.0 million, with GAAP diluted EPS dropping to $0.26 from $0.46. The Wet Shave segment saw organic sales fall 1.9% on private label supply constraints, international sales declined 1.4% amid Middle East disruption, and full-year restructuring costs are now expected to reach roughly $92 million, up from the prior $90 million estimate.
EPC · Capital · Neutral Q3 sales rose 1.7% and adjusted EPS beat guidance, but operating income halved on margin decline and $24.5M restructuring charges.
Edgewell Q3 organic sales return to growth, full-year outlook midpoint unchanged
Edgewell Personal Care reported third quarter fiscal 2026 results with organic net sales up 1.1%, driven by a 3% increase in North America, while adjusted earnings per share of $0.72 and adjusted EBITDA of $78.9 million came in ahead of expectations. CEO Rod Little said the company expects stronger overall growth in the fourth quarter and maintained the full-year adjusted EPS and adjusted EBITDA outlook at the midpoint, with organic net sales now expected to be flat to up 50 basis points, adjusted EPS in the range of $1.80 to $2.00, and adjusted EBITDA between $250 million and $260 million. CFO Francesca Weissman noted that adjusted gross margin declined 30 basis points in the quarter, in line with expectations, and that the company expects material gross margin expansion in the fourth quarter driven by productivity savings, cycling of one-time costs, and favorable foreign exchange. During the quarter there were headlines about an unsolicited offer and that the Board had rejected the offer as insufficient, and when asked about it, Little said the company cannot comment on rumors or speculation but that the Board has a fiduciary duty and would consider any inbound proposal that beats the organic plan. International organic sales declined 1.4% due to the Middle East conflict, lower private label sales from temporary supply disruptions, and a weaker start to the sun season in Europe and Latin America, but the company expects international to return to growth in the fourth quarter.
Edgewell Personal Care beats Q3 earnings estimates with $0.72 per share
Edgewell Personal Care reported quarterly earnings of $0.72 per share, surpassing the Zacks Consensus Estimate of $0.64 per share and marking an earnings surprise of 12.5%. Revenue for the quarter ended June 2026 came in at $570.1 million, missing the consensus estimate by 1.87% and down from $627.2 million a year ago. The company has beaten EPS estimates in three of the last four quarters. Shares have gained about 67.3% year-to-date, significantly outperforming the S&P 500's 13% rise. Ahead of the release, estimate revisions had been unfavorable, giving the stock a Zacks Rank #4, or Sell.
Personal care stocks post strong Q1 with revenues beating estimates by 2.5%
The nine personal care stocks tracked by the report delivered a strong first quarter, with aggregate revenues beating analysts' consensus estimates by 2.5% while next quarter's revenue guidance came in 3.5% below expectations. Edgewell Personal Care reported flat revenues of $519.5 million, in line with estimates, and posted a very strong quarter with beats on EBITDA and organic revenue. USANA Health Sciences was the best performer, with revenues of $250.2 million exceeding expectations by 3.8% and solid beats on EBITDA and EPS. Herbalife was the weakest, with revenues of $1.32 billion up 7.8% year on year but next quarter EBITDA guidance missing estimates. Medifast reported revenues of $76.04 million, down 34.3% year on year, yet beat expectations by 9.9% and raised full-year guidance. Estée Lauder posted revenues of $3.71 billion, up 4.6% year on year, in line with estimates, and exceeded EPS expectations while raising full-year EPS guidance. Share prices of the group have risen 11.7% on average since the latest earnings results.
Edgewell Personal Care Releases Fiscal 2025 Sustainability Report
Edgewell Personal Care has released its fiscal 2025 Sustainability Report, detailing progress across its Sustainable Care strategy. The company reduced virgin petroleum-based plastic in disposable razor handles by 30.8% and in packaging by 31.0% versus a fiscal 2019 baseline, while 83.2% of packaging was designed for recycling or reuse. Greenhouse gas emissions fell 40% from the fiscal 2019 baseline, 88% of manufacturing waste was diverted from landfill, and the company continued sourcing 100% certified sustainable palm oil. Edgewell also reported a record-low injury rate of 0.51, donated approximately US$715,000 in charitable giving, and was certified as a Great Place To Work across 13 regions.
ATI Named Top Momentum Stock While Edgewell and Compass Underwhelm
StockStory identified ATI as a momentum stock worth buying, while Edgewell Personal Care and Compass were flagged as stocks to avoid. ATI, a producer of specialized materials for aerospace and defense, posted annual revenue growth of 11.1% over five years and saw its free cash flow margin expand by 21.7 percentage points. Edgewell Personal Care, owner of brands like Banana Boat and Schick, experienced declining operating margins and a 6.8% annual drop in earnings per share over three years. Compass, a digital residential real estate brokerage, has struggled with operating losses and a low free cash flow margin of 0.9% over two years.
Edgewell Personal Care Stock Soars After Rejecting Yellow Wood Partners' $30-Per-Share Takeover Bid
Edgewell Personal Care shares surged 13.7% in afternoon trading after the company rejected an unsolicited takeover offer from private equity firm Yellow Wood Partners. The bid was priced at $30 per share, but the board of the Schick razors maker deemed the offer too low. The rejection signals management's more optimistic view of the company's value and future prospects, which resonated positively with investors. Edgewell Personal Care is up 55.6% year-to-date and trading near its 52-week high of $27.10.
Micron leads tech selloff while IBM and Edgewell rally on upgrades and deal news
Micron Technology dropped more than 10% in midday trading, leading a broad tech selloff that also saw Marvell Technology shed 8% and Sandisk lose 11%. IBM rose more than 4% after JPMorgan upgraded the stock to overweight, citing software-driven recurring revenue and margin improvements, and received an additional boost from President Trump's executive order to accelerate quantum computing. Edgewell Personal Care jumped more than 14% after Bloomberg reported the company rejected an unsolicited $30-per-share takeover offer from Yellow Wood Partners as too low. Carnival fell 6% on weaker-than-expected third-quarter guidance, while AMC Entertainment tumbled 25% after announcing a $200 million share sale. SpaceX shares rose almost 6%, recovering after briefly falling below their $150 debut price.
StockStory Highlights Three Consumer Stocks to Avoid
StockStory identifies three consumer stocks that investors should pass on due to weak fundamentals. Church & Dwight, with a market cap of $23 billion, posted 4.1% annual revenue growth over three years and faces flat projected sales. The Marzetti Company, valued at $3.00 billion, saw only 1.8% annual revenue growth and a gross margin of 23.5%. Edgewell Personal Care, with a market cap of $997.7 million, experienced no organic revenue growth and a 7.3 percentage point drop in operating margin.
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