Edgewell Personal Care released third quarter fiscal 2026 results for the period ended June 30, demonstrating mixed performance across its business segments. Net sales reached $570.1 million, representing a 1.7% increase year-over-year, with organic net sales climbing 1.1%. The company’s North America segment showed signs of recovery with organic sales growth of 3.0%, driven by volume gains in Sun, Skin Care, and Grooming categories attributed to improved execution, expanded distribution, and momentum in priority brands.
The Sun and Skin Care category delivered net sales growth of 5.7% with organic sales up 5.0%, supported by mid-single-digit Sun Care expansion in North America and strong performance in Grooming and Skin Care worldwide. Adjusted earnings per share remained flat at $0.72 compared to the prior year, exceeding company guidance, while adjusted EBITDA reached $78.9 million ahead of plan. Interest expenses decreased to $16.7 million from $19.4 million following debt reduction achieved through proceeds from a Feminine Care divestiture. The company maintained liquidity with $397.1 million in cash and $418.8 million available on its revolving credit facility.
Profitability metrics deteriorated significantly on the cost side. Gross margin contracted 210 basis points to 42.5%, with adjusted gross margin declining 30 basis points to 44.5%, as core inflation and tariffs exceeded productivity savings. Advertising expenditures increased to 14.6% of sales from 13.6%, while selling, general and administrative expenses rose to 19.0% from 18.0%, partly due to higher incentive compensation. Operating income declined substantially to $25.0 million from $45.0 million, and GAAP diluted earnings per share fell to $0.26 from $0.46. Restructuring charges totaled $24.5 million during the quarter.
Other segments faced challenges during the period. The Wet Shave segment experienced organic sales decline of 1.9% attributable to private label supply constraints stemming from the company’s manufacturing consolidation efforts, with segment profit falling nearly 25% on an organic basis. International sales decreased 1.4%, negatively impacted by disruption from the Middle East conflict. Full-year restructuring costs are now anticipated to reach approximately $92 million, increased from the prior estimate of $90 million, with adjusted net debt leverage remaining at 3.7 times. Hedge fund ownership declined from 20 funds to 15 in the most recent quarter, while short interest stood at 9.79% of the float.
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