Edgewell Personal 2025 Q2 Earnings Misses Targets with Net Income Declining 19.4%

Edgewell Personal Care reported its fiscal 2025 Q2 earnings on May 7, 2025. The company missed expectations, reporting a 3.1% decline in net sales compared to the prior year, driven by weakness in all categories, particularly feminine care. Edgewell also lowered its full-year financial outlook, citing economic concerns that are negatively impacting consumer sentiment and spending behaviors. Adjusted earnings per share fell short of analyst estimates, and the company expressed caution over the challenging macroeconomic environment.

Revenue
Edgewell Personal Care experienced a decline in revenue, totaling $580.70 million for the quarter, down 3.1% from $599.40 million in the same quarter of the previous year. The Wet Shave segment contributed $285.50 million, while Sun and Skin Care generated $231.10 million. Furthermore, the Feminine Care segment brought in $64.10 million, collectively leading to the total net sales of $580.70 million.

Earnings/Net Income
Edgewell Personal's earnings per share (EPS) dropped 16.7%, reaching $0.60 in 2025 Q2 compared to $0.72 in 2024 Q2, with net income declining 19.4% to $29 million from $36 million in the same quarter last year. The EPS results indicate underperformance.

Price Action
The stock price of Edgewell Personal rose by 0.37% during the latest trading day, but experienced a significant decline of 11.59% over the past week and 8.97% month-to-date, reflecting investors' concerns over the company's performance and outlook.

Post-Earnings Price Action Review
The strategy of purchasing Edgewell Personal Care shares after a quarter with revenue growth and holding them for 30 days has resulted in poor performance over the past five years. This approach generated a return of -3.12%, which is substantially lower than the benchmark return of 84.08%. The strategy's excess return stands at -87.20%, with a compound annual growth rate (CAGR) of -0.63%, indicating significant losses. Additionally, the strategy exhibited a maximum drawdown of -18.17% and a Sharpe ratio of -0.07, reflecting considerable risk and negative returns.

CEO Commentary
"We continue to execute well on our strategic priorities, acting with urgency, discipline, and purpose in a challenging and volatile environment. Our focus on business fundamentals has led to top-line growth in our International business and accelerated gross margin expansion through excellent execution of our productivity program. While execution across much of the business is strong, we recognize that work remains to better position our portfolio in the competitive U.S. market. Therefore, we remain in an investment stance, reinforcing brand equity and supporting innovation. Despite the challenging economic environment, we will incrementally invest, focusing on our Wet Shave and Sun Care portfolios in the US." - Chris Gough, CEO

Guidance
"We expect the challenging economic environment to negatively impact consumer sentiment and behavior, moderating our top-line expectations. As we look forward to the second half of the year, we will incrementally invest in our Wet Shave and Sun Care portfolios, while continuing to focus on our strategic priorities and disciplined execution. I am confident that these investments will strengthen our business and better position Edgewell to deliver significant value creation for our shareholders.”

Additional News
In recent developments, Edgewell Personal Care has announced a series of shareholder returns and strategic adjustments. The company declared a quarterly cash dividend of $0.15 per share for the second fiscal quarter, payable on July 9, 2025, to shareholders of record as of June 6, 2025. Additionally, Edgewell returned $42.7 million to shareholders through $35.4 million in share repurchases and $7.3 million of dividends during the second quarter. The company also revised its fiscal year 2025 earnings guidance, reflecting increased investments in brand equity and tariff impacts, aligning with its strategic focus on reinforcing its market position amid challenging economic conditions.