Edgewell Personal Care (NYSE:EPC) forecast organic sales growth of 1% to 3% in fiscal 2027 after a stronger fourth quarter, while pushing back savings from a North American Wet Shave manufacturing consolidation by about six months.
The maker of Schick razors, Hawaiian Tropic sunscreen and Cremo grooming products expects adjusted operating profit to rise approximately 10% in the new fiscal year, despite energy-related inflation, tariff costs and a planned increase in advertising spending.
Fourth-quarter organic net sales rose 3.1%, with growth in both North America and international markets. Adjusted earnings per share from continuing operations increased to $0.78 from $0.52 a year earlier, while GAAP diluted earnings per share from continuing operations fell to $0.23 from $0.26.
“The improvement was not driven by a single initiative, customer, or brand,” President and CEO Rod Little said. He attributed the results to broader progress across the portfolio and investments in the company’s brands and capabilities.
Fiscal 2027 outlook
Edgewell projected adjusted earnings of $1.85 to $2.15 per share for fiscal 2027, representing growth of approximately 3.5% at the midpoint. Adjusted EBITDA is expected to range from $250 million to $270 million, compared with $254.5 million in fiscal 2026.
CFO Fran Weissman said the earnings outlook includes approximately $0.20 per share in headwinds below operating profit, including $0.17 from the expiration of transition services agreement income related to the Feminine Care divestiture.
The company expects organic sales to be flat to down approximately 1% in the first quarter, partly because of a shift in North American Sun Care shipments into the second quarter and continued private-label supply pressure. It expects roughly two-thirds of adjusted EBITDA and approximately 80% of adjusted EPS to be generated in the second half.
Edgewell plans to increase advertising and promotional spending to approximately 13% of sales, up about 80 basis points, with a larger increase in the first half. It also expects adjusted gross margin to expand about 60 basis points and adjusted selling, general and administrative expenses to improve by 90 basis points as a percentage of sales.
Weissman said total inflation, including tariffs and higher oil and commodity costs, is expected to be about 300 basis points. The company anticipates more than 250 basis points of mitigation from productivity and volume absorption, alongside pricing and revenue-management initiatives.
Manufacturing consolidation delayed
Little said bringing new Wet Shave capacity online while growth accelerated had proved more challenging than anticipated. Edgewell now expects savings from the manufacturing consolidation to begin in fiscal 2028 rather than fiscal 2027, as it prioritizes network stability and customer service.
Private-label Wet Shave sales fell roughly 10% in fiscal 2026, while branded sales grew approximately 2%, Weissman said. Little attributed much of the private-label decline to supply constraints rather than consumer demand and said the company had reduced orders and exited some lower-margin customers.
Little said the consolidation of four plants into one new site was roughly halfway complete. Capacity pressure is expected to be greatest in the first quarter of fiscal 2027, moderate significantly in the second quarter and give way to private-label growth in the second half.
Separately, Edgewell expects to incur approximately $55 million in restructuring and related charges in fiscal 2027 as it accelerates a broader operating-model transformation. Management said associated savings should more than offset remaining stranded costs from the Feminine Care divestiture.
Brand performance and full-year results
Fourth-quarter organic sales rose 1.6% in Wet Shave and 6.5% in Sun and Skin Care. Cremo sales grew more than 50% in the quarter, marking its eighth consecutive quarter of growth above 20%, Weissman said.
In U.S. Sun Care, fourth-quarter value share rose 20 basis points and unit share increased 70 basis points. Hawaiian Tropic gained 280 basis points of share, partly offset by declines at Banana Boat. Little said Edgewell expects Banana Boat to move toward holding share in fiscal 2027 following new packaging and a marketing campaign.
For fiscal 2026, organic net sales increased 0.3%. Adjusted EPS from continuing operations rose to $1.93 from $1.81, although adjusted operating profit declined approximately 7%, reflecting higher marketing investment, higher SG&A expenses and a slight gross-margin decline.
Net cash provided by operating activities fell to approximately $50 million from $118 million, which Weissman attributed primarily to lower earnings and cash-flow headwinds associated with the Feminine Care divestiture. Edgewell expects adjusted free cash flow of $100 million to $120 million in fiscal 2027.
About Edgewell Personal Care (NYSE:EPC)
Edgewell Personal Care is a global consumer products company focused on personal grooming and sun and skin care. Its products include shaving systems, disposable razors, shaving gels and creams, sunscreens and skin care products, sold through retailers and online channels. Its brand portfolio includes Schick, Wilkinson Sword, Edge, Skintimate, Billie, Banana Boat, Hawaiian Tropic, Bulldog and Jack Black. The company serves consumers in the United States and international markets. Edgewell became an independent public company in 2015 following its separation from Energizer Holdings.
