Edgewell Personal Care (NYSE: EPC) reported better-than-expected fiscal fourth-quarter results Thursday, and the headline numbers only tell part of the story. The company behind Schick razors and Hawaiian Tropic sunscreen posted adjusted earnings of 78 cents per share, edging out Wall Street's estimate of 77 cents. Revenue climbed 3% year over year to $484.1 million, topping analysts' forecast of $479.8 million.
CEO Rod Little pointed to stronger North American sales, renewed international growth and improving momentum across key brands. Despite inflation and competitive pressures, he said the company's transformation is creating more room to invest in its brands and improve profitability. Edgewell's portfolio includes Schick, Wilkinson Sword, Skintimate, Hawaiian Tropic, Wet Ones, Cremo, Jack Black and Billie.
Sales Growth and Margins Improve
Organic sales rose 3.1%, with North America up 3.3% and international markets gaining 3.0%. Adjusted gross margin expanded 510 basis points to 45.7%, supported by cost savings, higher volumes and favorable currency movements. Adjusted EBITDA jumped to $76.8 million from $43 million a year earlier.
Wet Shave sales increased 1.2%, while segment profit rose 10.8% to $58.7 million. Sun and Skin Care sales climbed 7%, while segment profit surged 294% to $19.7 million. Edgewell ended September with $375.6 million in cash and $418.8 million available under its U.S. revolving credit facility. The company declared a quarterly dividend of 15 cents per share, payable Jan. 7 to shareholders of record Dec. 3.
Fiscal 2027 Forecast
Looking ahead, Edgewell forecasts fiscal 2027 revenue of $2.004 billion to $2.044 billion, compared with Wall Street's estimate of $2.021 billion. Organic sales are expected to grow 1% to 3%. The company expects adjusted earnings of $1.85 to $2.15 per share, compared with analysts' estimate of $2. Edgewell also forecasts adjusted free cash flow of $100 million to $120 million.
Management expects approximately $55 million in pretax restructuring charges in fiscal 2027 as it further consolidates Wet Shave operations and streamlines its manufacturing and supply chain.
EPC Price Action: Edgewell Personal Care shares were unchanged at $29.15 during premarket trading on Thursday. The stock is approaching its 52-week high of $30.36, according to market data.
