0001628280-25-052765
SEC filingNet sales fell 1.3% to $2.2235B, adjusted EPS dropped to $2.52 from $3.05, pressured by volume declines in Wet Shave and Feminine Care.
Edgewell Personal Care Company describes itself as one of the world’s largest manufacturers and marketers of personal care products. The company was incorporated in 1999 and became independent in 2000. Through a series of acquisitions including Schick-Wilkinson Sword (2003), Playtex Products (2007), and more recently Bulldog (2016), Jack Black (2018), Cremo (2020), and Billie (2021), Edgewell has built a portfolio spanning Wet Shave, Sun and Skin Care, and Feminine Care. The company operates in approximately 20 countries and sells products in more than 50 countries.
Edgewell manages three reporting segments: Wet Shave, Sun and Skin Care, and Feminine Care. Wet Shave products include razor systems and disposables under Schick, Wilkinson Sword, and Billie, as well as shave preparations under Edge and Skintimate. The company holds the number two global market share in wet shaving. Sun and Skin Care encompasses Sun Care brands Banana Boat and Hawaiian Tropic, the Wet Ones hand wipes brand, and men’s grooming brands Bulldog, Jack Black, and Cremo. Edgewell holds a leading market share in the U.S. Sun Care category. Feminine Care includes Playtex, Stayfree, Carefree, and o.b. brands, and Edgewell is one of the top three manufacturers in North America. On November 6, 2025, the Board approved the sale of this segment for $340 million.
Key brands include Schick, Wilkinson Sword, Hydro, Quattro, Intuition, Edge, Skintimate, Billie, Banana Boat, Hawaiian Tropic, Wet Ones, Bulldog, Jack Black, Cremo, Playtex, Stayfree, Carefree, and o.b. The company also manufactures private label razors under Edgewell Custom Brands. Billie, acquired in 2021, has strong direct-to-consumer and digital capabilities and expanded into U.S. brick-and-mortar in 2022.
Products are marketed through a direct sales force in major markets (U.S., Japan, China, Australia, Western Europe, Latin America) and through third-party distributors elsewhere. E-commerce includes Schick.com DTC sites for Bulldog, Jack Black, and Billie, and a T-Mall partnership in China. Distribution reaches mass merchandisers, warehouse clubs, food, drug, convenience, and military stores. Walmart is the only customer exceeding 10% of consolidated net sales, accounting for 17.4% in fiscal 2025. Target represented 9.2% of Sun and Skin Care and 10.1% of Feminine Care segment sales.
The personal care categories are highly competitive. In Wet Shave, principal competitors are Procter & Gamble (Gillette), Bic Group, and Dorco, plus newer entrants like Harry’s, Flamingos, Estrid, and others. In Sun Care, competitors include Bayer AG and Kenvue. Men’s skin care competitors include Kenvue, L’Oréal, Estee Lauder, and Unilever. Feminine Care competitors are Procter & Gamble and Kimberly Clark. Competition is based on brand quality, product performance, customer service, and price.
Edgewell’s strategic priorities include driving innovation and geographic expansion in Sun and Skin Care, leveraging e-commerce for growth, and executing on Sustainable Care 2030 targets such as reducing virgin plastic, cutting GHG emissions, and achieving operational carbon neutrality. The company also aims to strengthen its Wet Shave position through product innovation and the Billie brand’s DTC model.
As of September 30, 2025, Edgewell had approximately 6,700 employees, with about 2,000 in the United States. Some employees outside the U.S. are represented by unions or works councils. The company emphasizes a culture of “People First” and conducts annual employee experience surveys. Safety programs include machine safety assessments and the “Alive and Well” initiative.
Net sales for fiscal 2025 declined 1.3% to $2,223.5 million, driven by a 1.3% organic decrease. International markets grew 3.5%, but North America fell 4.4% due to volume declines in Wet Shave, Feminine Care, and Sun Care. GAAP gross margin contracted 80 basis points to 41.6%, and adjusted gross margin fell 110 basis points to 42.0%, as productivity savings of 270 bps were more than offset by core inflation (150 bps), unfavorable mix (75 bps), higher promotions (45 bps), and lower absorption (20 bps).
GAAP operating income dropped 51.5% to $96.6 million, largely due to $53.1 million in restructuring and $51.1 million in goodwill impairment. Adjusted operating income, which excludes these items, was $219.1 million, or 9.9% of sales, down from 11.9% in the prior year. Net earnings fell 74.2% to $25.4 million, while adjusted net earnings decreased 21.3% to $120.4 million. Adjusted diluted EPS was $2.52, compared to $3.05 last year.
Wet Shave: Net sales decreased 0.8% to $1,218.9 million, with organic sales down 1.2%. North America organic sales fell 7.2% due to volume declines in shave preps and disposables, while International grew 3.7% on higher volumes and price. Segment profit declined 6.7% to $190.3 million, but organic segment profit rose 1.5% on improved gross margin partly offset by higher marketing.
Sun and Skin Care: Net sales edged up 0.3% to $743.1 million, with organic growth of 0.9%. Growth in Grooming (9.2%) and Skin Care (12.6%) was partially offset by a 4.1% decline in Sun Care due to unfavorable weather and competition. Segment profit plunged 25.1% to $98.4 million, driven by lower gross margin and higher SG&A and marketing expenses.
Feminine Care: Net sales dropped 7.8% to $261.5 million on volume weakness in Pads and Tampons. Segment profit fell 45.8% to $15.6 million, reflecting the impact of lower sales on gross profit. A $51.1 million goodwill impairment was recorded following the decision to divest the business.
Management expects fiscal 2026 capital expenditures in the range of $70–$80 million, focused on maintenance, productivity, new product development, and IT enhancements. The company anticipates continued inflation pressures but will pursue productivity initiatives and revenue management to mitigate impacts. Restructuring efforts, including the consolidation of Mexico operations, are expected to incur approximately $49 million in pre-tax charges in fiscal 2026. No revenue or earnings guidance was provided.
At September 30, 2025, Edgewell held $225.7M in cash and equivalents. Total debt (notes payable and long-term debt) stood at $1,412.8M, up from $1,299.5M a year earlier, primarily driven by increased draws on the revolving credit facility ($140.0M outstanding vs $34.0M). Shareholders' equity decreased to $1,553.1M from $1,584.1M due to share repurchases and dividends. Inventory remained flat at $484.7M.
The company has operating lease commitments totaling $108.8M, with $20.4M due within one year. Debt maturities are $750.0M in fiscal 2028 (5.5% Senior Notes) and $500.0M in fiscal 2029 (4.125% Senior Notes). The revolving credit facility matures in 2029. No material purchase commitments were disclosed beyond leases.
During fiscal 2025, Edgewell repurchased 2.8M shares for $90.2M, leaving only 0.2M shares remaining under the prior authorization. Subsequently, on November 13, 2025, the Board approved a new $100M buyback program. Dividends totaled $28.8M ($0.15 per quarter), flat year-over-year. Capital expenditures were $77.0M, or 3.46% of sales, up from $56.5M in fiscal 2024. Net debt increased by $113.3M due to higher borrowings.
Segment profits: Wet Shave $190.3M (margin 15.6%), Sun and Skin Care $98.4M (13.2%), Feminine Care $15.6M (6.0%). Wet Shave revenue declined slightly (-0.8%) while Sun and Skin Care grew modestly (+0.3%). Feminine Care revenue fell 7.8%, and goodwill impairment of $51.1M was recognized. The Feminine Care segment is held for sale with a definitive agreement for $340M. Geographically, US net sales were $1,204.1M (54.2% of total) and international $1,019.4M (45.8%). Razors and blades constitute 49.7% of consolidated net sales.
Edgewell faces significant risks from volatile raw material costs, energy prices, and shipping expenses, driven by inflation, geopolitical events, and supply chain disruptions. The imposition of tariffs, particularly on imports from Mexico and China, could increase costs and reduce demand. Changes in U.S. trade policy and retaliatory measures may further disrupt supply chains and erode margins. The company acknowledges that sustained price increases to offset cost pressures could lead to volume declines.
The competitive landscape is intense, with large players like Procter & Gamble, Unilever, and private label brands exerting pressure on pricing and shelf space. Retailer consolidation and omnichannel demands increase negotiating leverage against Edgewell. Customer concentration is a key risk: Walmart alone accounts for 17.4% of net sales, and the loss of this customer would materially harm results.
Edgewell relies on third-party manufacturers and a global supply chain, exposing it to disruptions from natural disasters, labor shortages, and geopolitical instability. International operations represent 46% of net sales, subjecting the company to currency fluctuations, expropriation risks, and compliance with the Foreign Corrupt Practices Act. Restructuring and cost-saving initiatives may cause operational disruptions, capacity constraints, and employee retention challenges. The seasonal nature of sun care products (Banana Boat, Hawaiian Tropic) adds volatility to sales and working capital.
Extensive regulation of product safety, labeling, and environmental matters could result in compliance costs, fines, or product recalls. Litigation related to product liability, patent disputes, and consumer protection claims is ongoing and could lead to significant expenses. Evolving ESG regulations and reporting requirements increase compliance burdens; failure to meet sustainability goals could damage reputation and investor confidence.
Edgewell carries $1.4 billion in debt, with $1.3 billion at fixed rates maturing after 2028. Financial covenants could limit flexibility, and a downgrade in credit ratings would increase borrowing costs. The company's significant goodwill and intangible assets are subject to impairment risk if profitability declines. Acquisitions and divestitures (e.g., planned sale of Feminine Care business) pose integration and execution risks. Pension obligations, though frozen, remain significant and could require unexpected contributions.
No cash flow figures available for analysis.