Edgewell Personal Care Company (NYSE:EPC) delivered fourth-quarter results on Thursday that showed stronger-than-expected sales but weaker earnings, sending shares down 0.85% in premarket trading.
The company reported adjusted EPS of $0.68, falling short of the Wall Street consensus of $0.80. Still, quarterly revenue came in at $537.2 million, topping forecasts of $532.34 million and rising 3.8% year over year. Organic sales were up 2.5%.
Despite the top-line momentum, the bottom line came under pressure. Adjusted gross margin fell 330 basis points to 39.3%, weighed down by currency headwinds that accounted for roughly 120 basis points of the decline.
“Fiscal 2025 was a year of challenge and transformation. While both external and internal pressures impacted our results, we exited the year with encouraging momentum marked by improving sales and market share trends and a revitalized brand portfolio,” said Rod Little, Edgewell’s President and Chief Executive Officer.
International markets were a bright spot, posting 6.9% organic growth on a combination of rising volumes and price improvements across several categories. North America, however, saw a slight 0.6% decline in organic sales.
Looking to fiscal 2026, Edgewell guided for adjusted EPS of $2.15 to $2.55, below analysts’ expectation of $2.65. The company expects reported net sales to grow between 0.5% and 3.5%, with organic performance ranging from -1% to +2%.
Separately, the company announced a definitive agreement to sell its Feminine Care division to Essity for $340 million, marking a strategic shift in its portfolio.