Edgewell's Q2 2025 Earnings Call: Navigating Contradictions in Tariffs, Sun Care Outlook, and North America Sales

Tariff impact and management strategy, Sun Care category outlook, North America sales and transformation confidence, tariff impact and mitigation strategy are the key contradictions discussed in Edgewell Personal Care's latest 2025Q2 earnings call.



Organic Sales and Market Performance:
- Edgewell Personal Care Company reported a 1.5% decrease in organic net sales for the quarter, with a 4% decline in North America and 3% international growth.
- The decline was primarily due to slower-than-expected recovery in the U.S. Fem Care portfolio and a slower start to the sun season in the United States.

Top Line Growth and Innovation:
- The company experienced top line growth across international markets, particularly in Greater China and Japan.
- This growth was driven by compelling consumer-centric innovation in Wet Shave, Sun Care, and Grooming segments.

Cost Management and Margin Accretion:
- Edgewell achieved an adjusted gross margin rate increase of 100 basis points and constant currency gross margin accretion of 110 basis points.
- This was supported by realized productivity savings of 380 basis points, despite challenges from core growth inflation and promotional pressures.

North American Business Challenges and Strategy:
- The North American business faced a 4% decline in organic sales, with particular challenges in Sun Care and Fem Care.
- The company is focusing on reshaping its business and restoring critical retail partnerships to enhance market performance.