Edgewell's Q3 2025: Navigating Tariffs, Sales Growth, and Sun Care Contradictions

Challenging Performance and External Headwinds:
- Edgewell Personal Care Company reported a 4.2% decrease in organic net sales for Q3 2025.
- The decline was significantly impacted by very weak Sun Care seasons, particularly in North America and certain Latin America markets, due to adverse weather conditions.
- Additionally, the company faced headwinds from tariffs and foreign exchange rates, which contributed to a decreased adjusted gross margin rate by 150 basis points, or down approximately 40 basis points in constant currency.

International Growth and Market Share Strength:
- International markets continued to show growth with 2% organic growth in Q3, driven by price and SRGM gains.
- This growth results from a consistent mid- to high single-digit organic growth over the past four years and notable market share gains in Shave, Sun, and Grooming across key markets.
- The strong performance in international markets is attributed to their market growth strategy and locally designed innovation.

Investment and Brand Performance:
- Edgewell increased investments in brand campaigns and innovations in North America, leading to improved market share trends for brands like Hawaiian Tropic and Cremo.
- These investments drove a 150 basis point share gain for Hawaiian Tropic, a 40 basis point increase in Cremo's share, and sequential improvement in Hydro Silk's share.
- The incremental investments were made to support new brand campaigns and innovations, aiming to strengthen the U.S. business and brand resonance with consumers.

Financial Outlook and Currency Impact:
- The company updated its full-year outlook, expecting organic net sales to be down approximately 1.3%, with currency now expected to be slightly favorable.
- Adjusted earnings per share are anticipated to be approximately $2.65, inclusive of approximately $0.46 per share of currency headwinds.
- The outlook reflects the impact of lower Sun Care sales, increased brand investments, and additional tariff and FX headwinds, partially offset by more favorable taxes.