Edgewell Personal Care Company has reported its first fiscal quarter results for 2026, ended December 31, 2025. The company successfully completed the divestiture of its feminine care business for $340 million, which has had a positive impact on its transformation journey. The estimated annualized impact of the divestiture is expected to be favorable to the previous outlook.
In the first quarter of fiscal 2026, the company's consolidated net sales were $486.8 million, reflecting a 1.8% increase compared to the prior year. However, on a continuing operations basis (excluding the feminine care business), net sales were $422.8 million, representing a 1.9% increase compared to the prior year quarter.
Organic net sales on a consolidated basis decreased by 0.3%, while on a continuing operations basis, organic net sales decreased by 0.5%. The company reported GAAP diluted net loss per share of $(1.41) on a consolidated basis and $(0.63) on a continuing operations basis.
Adjusted EPS for the first quarter was $0.03 on a consolidated basis and $(0.16) on a continuing operations basis, showing a decline from the prior year quarter.
The company's gross profit was $161.0 million, with a gross margin of 38.1%, representing a decrease of 350 basis points. Adjusted gross margin as a percentage of net sales decreased by 210 basis points to 39.5%.
Edgewell's operating income was $(18.9) million, or (4.5)% of net sales on a continuing operations basis, compared to $9.3 million, or 2.2% of net sales in the prior year quarter. Adjusted operating income was $8.1 million, or 1.9% of net sales, down from $15.9 million, or 3.8% of net sales in the prior year quarter.
The company's adjusted EBITDA from continuing operations was $25.0 million, down from $30.9 million in the prior year quarter.
Net cash used for operating activities on a consolidated basis, inclusive of continuing and discontinued operations, was $125.9 million for the three months ending December 31, 2025, compared to $115.6 million in the prior year period.
Looking ahead, the company's full fiscal year 2026 financial outlook for continuing operations remains consistent with the prior outlook. Reported net sales are expected to increase in the range of approximately 0.5% to 3.5%, and organic net sales are expected to be in the range of a 1.0% decrease to a 2% increase.
The company is also taking specific actions to strengthen its operating model, simplify the organization, and improve manufacturing and supply chain efficiency through restructuring and repositioning actions, expecting to incur pre-tax charges of approximately $65 million for the full fiscal year.
In conjunction with the announcement, the company will hold an investor conference call and a live webcast.
Edgewell Personal Care Company is a leading consumer products company with a diversified portfolio of established brand names and a broad global footprint operating in over 50 markets. The market has reacted to these announcements by moving the company's shares -1.69% to a price of $18.67. Check out the company's full 8-K submission here.
