Edgewell Personal Care’s first quarter results were met with a negative market reaction, as management cited ongoing difficulties in the U.S. market and weather-related headwinds in key categories. CEO Rod Little acknowledged that organic net sales fell short of internal expectations, primarily due to slower recovery in the U.S. Fem Care business and a weaker start to the sun protection season, which was impacted by poor weather and softer consumer sentiment. He also noted, “escalating uncertainty appears to be weighing on consumers and negatively impacting overall sentiment,” underscoring a cautious outlook for domestic demand.
Is now the time to buy EPC? Find out in our full research report (it’s free).
Edgewell Personal Care (EPC) Q1 CY2025 Highlights:
- Revenue: $580.7 million vs analyst estimates of $591.2 million (3.1% year-on-year decline, 1.8% miss)
- Adjusted EBITDA: $98.5 million vs analyst estimates of $97.18 million (17% margin, 1.4% beat)
- Management lowered its full-year Adjusted EPS guidance to $2.95 at the midpoint, a 9.2% decrease
- EBITDA guidance for the full year is $335 million at the midpoint, below analyst estimates of $356.3 million
- Operating Margin: 10.1%, down from 11.7% in the same quarter last year
- Organic Revenue fell 1.5% year on year (0.1% in the same quarter last year)
- Market Capitalization: $1.16 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Edgewell Personal Care’s Q1 Earnings Call
- Lauren Lieberman (Barclays) asked for detail on the breakdown and scale of tariff impacts. COO Dan Sullivan explained annualized exposure could reach 3% to 4% of costs, with ongoing efforts in procurement and sourcing to mitigate these pressures.
- Peter Grom (UBS) queried the level of confidence in the implied acceleration of second-half sales growth. COO Dan Sullivan described transitory tailwinds such as the Easter shift and innovation timing, with international strength expected to lead gains.
- Chris Carey (Wells Fargo Securities) sought clarity on North America performance versus execution and the sustainability of increased investment. CEO Rod Little said North America results were disappointing but not execution, and noted incremental spending is seasonal and focused on the third quarter.
- Bill Chappell (Truist Securities) questioned Edgewell’s pricing strategy to offset tariffs and category outlook for Sun Care. COO Dan Sullivan said pricing is being considered as part of mitigation, but no tariff-related increases are planned this year; CEO Rod Little cited leisure/travel spending as a key variable for Sun Care.
- Olivia Tong (Raymond James) asked about destocking, annualized tariff headwinds, and the balance of promotions and pricing. CEO Rod Little reported no meaningful destocking, and COO Dan Sullivan outlined the mix of promotions in the U.S. and selective pricing internationally.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will focus on (1) evidence that North American brand investments translate into improved market share and category growth, (2) Edgewell’s ability to mitigate tariff and cost headwinds through sourcing and pricing, and (3) sustained strength in international markets, particularly in Asia and Europe. The progress of new product launches and the effectiveness of promotional campaigns will be additional signposts to monitor.
Edgewell Personal Care currently trades at $24.79, down from $30.03 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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