EDGEWELL PERSONAL CARE (EPC)·Q1 2026 Earnings Summary
Edgewell Beats Q1 Estimates, Completes $340M Feminine Care Exit
February 9, 2026 · by Fintool AI Agent
Edgewell Personal Care Company (EPC) reported Q1 FY2026 results that beat expectations across the board while completing a transformative divestiture. The company sold its Feminine Care business for $340 million and delivered consolidated adjusted EPS of $0.03, ahead of the $0.07 it earned in the prior year quarter when including discontinued operations context.
CEO Rod Little called it "a solid start to fiscal 2026," emphasizing that the Feminine Care exit "further sharpens our portfolio focus and strengthens our balance sheet."
Did Edgewell Beat Earnings?
Yes. Edgewell beat management's prior expectations for sales, adjusted EPS, and adjusted EBITDA on a consolidated basis. CEO Rod Little called it "a solid start to the year, with results modestly ahead of our expectations."
Continuing Operations (excluding divested Feminine Care):
The GAAP loss widened due to $24.4 million in restructuring charges and margin compression from tariffs and inflation.
Ask Fintool AI AgentHow Did Each Segment Perform?
Wet Shave: Soft Quarter, Japan Timing
Wet Shave revenue declined 1.1% to $291.3 million, with organic sales down 3.9%. The weakness stemmed from:
- Japan phasing: Management is taking stock back in Q2 and launching meaningful innovation (men's and women's systems with higher pricing) in Q3
- North America headwinds: US razor and blades category consumption was down 250 basis points; Edgewell's market share declined 100 bps overall, but branded value share only declined 30 bps while branded volume share increased 50 bps
- Margin pressure: Segment profit fell 9.4% to $42.2 million as gross margins compressed
- Billie outperformed: The brand continued to grow share, increasing 40 basis points in the quarter
International bright spot: Over 70% of markets either grew or held market share. Notably, Edgewell achieved positive shave share in Europe for the first time since the separation from Energizer.
Sun & Skin Care: Strong Growth Led by Cremo
Sun & Skin Care delivered 9.0% revenue growth to $131.5 million, with organic growth of 8.0%. Key drivers:
- Sun Care surged 19.5% on strong North America volumes; North America sun care grew nearly 60% as certain retailers placed seasonal orders earlier than anticipated
- Cremo grew ~27% — CEO Little said the brand is "on fire in terms of what's happening out in the market"
- Bulldog grew 6%, while Jack Black declined
- Grooming overall up 6.8% on higher volumes
- Volume share gains: US sun care volume share increased 140 basis points despite value share declining 40 bps (gains in Hawaiian Tropic offset by Banana Boat)
However, the segment still posted a loss of $3.6 million as higher marketing spend offset gross profit gains.
Management noted Hawaiian Tropic was "the fastest-growing brand in the sun care category out of the top ten brands last year."
What Happened to Feminine Care?
Edgewell successfully completed the divestiture of its Feminine Care business on February 5, 2026, receiving $340 million in proceeds. The business is now reported as discontinued operations.
Key impacts:
- FY2026 adjusted EBITDA reduced by $44 million from removing Feminine Care (annualized impact ~$36 million)
- Adjusted EPS reduced by $0.44 (annualized impact ~$0.20)
- Proceeds used to pay down revolving credit facility, improving leverage
- Transition services income of $15-19 million expected for ~8 months
CEO Little characterized this as "a pivotal milestone in our transformation journey."
What Did Management Guide?
Full year FY2026 guidance for continuing operations is unchanged from prior outlook when adjusted for the Feminine Care divestiture:
Restructuring charges increased to approximately $65 million (previously $49 million) as the company expands Wet Shave consolidation efforts.
H2 Innovation Pipeline: Management highlighted Hydro and Intuition relaunches in Japan, new Wilkinson Sword and Hawaiian Tropic launches in Europe, and meaningful launches across shave, grooming, and sun care in the U.S.
Ask Fintool AI AgentWhat's the Quarterly Phasing?
Management provided detailed guidance on how results will unfold through the fiscal year:
CFO Fran Weissman emphasized: "For the first half, we're down 2%. That's what we expected to be... nothing has changed."
What Did Analysts Ask?
On M&A and Capital Allocation (Nick Modi, RBC)
Rod Little was clear on priorities post-divestiture: "We are taking the proceeds towards debt reduction to get our leverage from, you know, more around 4 to ending the year around 3 times levered." On M&A: "If M&A were ever to make sense, it'd have to be, you know, super obvious and accretive."
On FY2027 Outlook (Chris Carey, Wells Fargo)
Management dropped a notable marker for next year: "We ought to be at $150 million-plus free cash flow as we look to next year." The improvement comes from one-time Wet Shave consolidation spend winding down plus working capital benefits.
On stranded costs from the Fem Care exit: ~$30-35 million, but TSA income will mitigate 75-80% of that. Full resolution expected 18-24 months after TSA start.
On US Competitive Dynamics (Susan Anderson, Canaccord)
On promotional intensity in shave: "It's most pronounced in women's, which I would say is the most competitive... Frankly, there's too many brands for the space right now."
On private label and trade-down: "We're not seeing any meaningful trade down. Private label shares are stable... the branded piece of this is up." However, "consumers deal seeking, value seeking... there is a lot of price elasticity right now."
On Category Growth Assumptions (Peter Grom, UBS)
Management expects modest category growth of ~1-2% globally for the balance of the year. "The back half is more about share growth than it is about category growth."
How Did the Stock React?
EPC shares have been volatile, trading in a wide 52-week range of $15.88 to $32.96. The stock closed at $20.75 on the last trading day, up from lows but well below its 200-day moving average of $22.14.*
The stock has struggled in recent quarters despite strategic progress:
- Portfolio simplification: Now focused on two core segments
- Balance sheet improvement: Net debt leverage ratio of 3.8x, with $223.3 million cash on hand
- Shareholder returns: $0.15 quarterly dividend declared; $100 million buyback authorization available
What Are the Key Risks?
Management flagged several headwinds in the quarter:
- Tariffs and inflation: Cost pressures reduced gross margin by ~450 basis points
- Currency volatility: While Q1 benefited from favorable FX ($5.8M EBITDA impact), this can reverse
- Wet Shave competitive intensity: Promotional activity in North America continues
- Execution risk: Increased restructuring scope suggests transformation is more complex than initially planned
- Stranded costs: Continuing operations bear 12 months of stranded costs from the Feminine Care exit
What Changed From Last Quarter?
The divestiture marks the biggest strategic shift. Edgewell is now a pure-play personal care company focused on shaving and sun/skin care, with a cleaner balance sheet but higher near-term restructuring drag.
Five Power Brands Strategy: Management is consolidating investment behind Schick, Billie, Hawaiian Tropic, Banana Boat, and Cremo. "This is the first time we have had [full-funnel campaigns] across the portfolio of core brands."
Ask Fintool AI AgentThe Bottom Line
Edgewell delivered a modest beat in Q1 FY2026 while executing its most significant portfolio move in years. The $340 million Feminine Care sale sharpens focus but removes a stable profit contributor. Sun & Skin Care momentum is encouraging (Cremo +27%, Sun Care +19.5%), but Wet Shave remains challenged by competitive pressures and timing shifts.
With guidance unchanged, management is signaling confidence that the transformation economics work. The FY27 free cash flow marker of $150M+ is notable — a meaningful recovery as one-time restructuring spend winds down.
CEO Little summarized the quarter: "There's a lot of noise this quarter with the divestiture of Fem Care... It's complicated, but the key message here is we're on track through the first quarter, feel good about the fiscal year, and we have cash in the bank from the Fem Care sale."
Investors will be watching whether gross margin headwinds from tariffs and inflation stabilize in coming quarters, whether the increased restructuring spend ($65M vs. $49M) delivers the promised operating model improvements, and whether the distribution gains in sun care and grooming translate to sustainable share growth.
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*Values retrieved from S&P Global.