Q3 2026 Edgewell Personal Care Co Earnings Call

August 5, 2026

Speaker #1: Your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you'll press star then 1 on your telephone keypad.

Operator: On your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I'll now turn the conference over to Chris Gough, Vice President, Investor Relations. Please go ahead.

Speaker #1: To try your question, please press star then 2. Please note, this event is being recorded. I would now turn the conference over to Chris Gough, Vice President of Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Good morning, everyone, and thank you for joining us this morning for Edgewell's third-quarter fiscal year 2026 earnings call. With me this morning are Rod Little, our President and Chief Executive Officer, and Fran Weissman, our Chief Financial Officer.

Chris Gough: Good morning, everyone. Thank you for joining us this morning for Edgewell's Q3 fiscal year 2026 earnings call. With me this morning are Rod Little, our President and Chief Executive Officer, and Fran Weissman, our Chief Financial Officer. Rod will kick off the call and then hand it over to Fran to discuss our Q3 2026 results and full year fiscal 2026 outlook. We will transition to Q&A. This call is being recorded and will be available via replay on our website, www.edgewell.com. During this call, we may make statements about our expectations for future plans and performance.

Speaker #2: Rod will kick off the call and then hand it over to Fran to discuss our third-quarter 2026 results, and full-year fiscal 2026 outlook. We will then transition to Q&A.

Speaker #2: This call is being recorded and will be available via replay on our website, www.edgewell.com. During this call, we may make statements about our expectations for future plans and performance.

Speaker #2: This might include future sales, earnings, advertising, and promotional spending, product launches, brand investment, investments in technology, advanced analytics, and AI-enabled capabilities, organizational and operational structures, and models.

Chris Gough: This might include future sales, earnings, advertising and promotional spending, product launches, brand investment, investments in technology, advanced analytics and AI-enabled capabilities, organizational and operational structures and models, cost mitigation and productivity efficiency efforts, savings and costs related to restructuring and repositioning actions, impacts from tariffs and other recent developments such as the conflict in the Middle East, changes to our working capital metrics, currency fluctuations, commodity costs, inflation, future plans for return of capital to shareholders, the disposition of our feminine care business, and more. Any such statements are forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, which reflect our current views with respect to future events, plans or prospects.

Speaker #2: Cost mitigation and productivity efficiency efforts, savings and costs related to restructuring and repositioning actions, impacts from tariffs, and other recent developments such as the conflict in the Middle East, changes to our working capital metrics, currency fluctuations, commodity costs, inflation, future plans for return of capital to shareholders, the disposition of our feminine care business, and more.

Speaker #2: Any such statements are forward-looking statements for the purposes of the Safe Harbor Provisions under the Private Securities Litigation Reform Act of 1995, which reflect our current views with respect to future events and plans or prospects.

Speaker #2: These statements are based on assumptions and are subject to various risks and uncertainties, including those described under the captioned risk factors in our annual report on Form 10-K for the year ended September 30, 2025, and as may be amended on our quarterly reports on Form 10-Q filed with the SEC.

Chris Gough: These statements are based on assumptions and are subject to various risks and uncertainties, including those described under the caption Risk Factors in our annual report on Form 10-K for the year ended 30 September 2025, and as may be amended in our quarterly reports on Form 10-Q filed with the SEC. These risks may cause our actual results to be materially different from those expressed or implied by our forward-looking statements. We do not assume any obligation to update or revise any of these forward-looking statements to reflect new events or circumstances, except as required by law. During this call, we will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles.

Speaker #2: These risks may cause our actual results to be materially different from those expressed or implied by our forward-looking statements. We do not assume any obligation to update or revise any of these forward-looking statements, to reflect new events or circumstances, except as required by law.

Speaker #2: During this call, we will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. Reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is shown in our press release issued earlier today.

Chris Gough: Reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is shown in our press release issued earlier today, which is available at the investor relations section of our website. This non-GAAP information is provided as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. However, management believes these non-GAAP measures provide investors with valuable information on the underlying trends of our business and allows more meaningful period-to-period comparisons of ongoing operating results. With that, I'd like to turn the call over to Rod.

Speaker #2: Which is available at the Investor Relations section of our website. This non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.

Speaker #2: However, management believes these non-GAAP measures provide investors with valuable information on the underlying trends of our business and allows more meaningful period-to-period comparisons of ongoing operating results.

Speaker #2: With that, I'd like to turn the call over to Rod.

Speaker #3: Thank you, Chris, and good morning, everyone. We delivered a solid third quarter that represented an important step forward in our fiscal 2026 progression. Organic net sales returned to growth, driven by a meaningful improvement in North America, where performance exceeded our expectations.

Rod Little: Thank you, Chris, and good morning, everyone. We delivered a solid Q3 that represented an important step forward in our fiscal 2026 progression. Organic net sales returned to growth, driven by a meaningful improvement in North America, where performance exceeded our expectations. We saw strength across sun care, grooming, and branded Wet Shave, reflecting improved execution across the business. Adjusted earnings per share and adjusted EBITDA were ahead of our expectations, while adjusted gross margin performance was in line with the outlook we outlined last quarter. At the beginning of the year, we anticipated that fiscal 2026 would be a back-half story, and that the company would return to both organic sales growth and earnings growth for the full year at the midpoint of our ranges. Despite market uncertainty and increased pressure, we have stayed the course, and the destination remains unchanged.

Speaker #3: We saw strength across sun care, grooming, and branded wet shave, reflecting improved execution across the business. Adjusted earnings per share and adjusted EBITDA were ahead of our expectations.

Speaker #3: While adjusted gross margin performance was in line with the outlook, we outlined last quarter. At the beginning of the year, we anticipated that fiscal 2026 would be a back half story, and that the company would return to both organic sales growth and earnings growth for the full year at the midpoint of our ranges.

Speaker #3: Despite market uncertainty and increased pressure, we have stayed the course and the destination remains unchanged. We grew sales in the third quarter, we expect stronger overall growth in Q4, and with growth across international markets and North America, our outlook for the full year adjusted earnings per share and adjusted EBITDA is unchanged at the midpoint.

Rod Little: We grew sales in the Q3, we expect stronger overall growth in Q4, with growth across international markets in North America, our outlook for the full year adjusted earnings per share and adjusted EBITDA is unchanged at the midpoint. Importantly, the quarter provides encouraging evidence that the investments we have made and the actions we have taken are strengthening our brands and capabilities and are beginning to translate into improved business performance. While the operating environment remains dynamic and challenging, consumption trends remained relatively stable during the quarter. North America returned to growth, and our priority brands continued to gain traction. Together, these results reinforce our confidence in the underlying trajectory of the business and our ability to deliver against our commitments. Before turning the call over to Fran, I'd like to take a step back and share why we believe Edgewell is becoming a stronger business.

Speaker #3: Importantly, the quarter provides encouraging evidence that the investments we have made and the actions we have taken are strengthening our brands and capabilities and are beginning to translate into improved business performance.

Speaker #3: While the operating environment remains dynamic and challenging, consumption trends remain relatively stable during the quarter. North America returned to growth, and our priority brands continue to gain traction.

Speaker #1: Good morning, and welcome to Edgewell's third quarter fiscal year 2026 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal conference specialist by pressing the star and zero on your telephone keypad.

Speaker #3: Together, these results reinforce our confidence in the underlying trajectory of the business and our ability to deliver against our commitments. Before turning the call over to Fran, I'd like to take a step back and share why we believe Edgewell is becoming a stronger business.

Speaker #1: today's presentation, there will be an opportunity to ask questions. To ask a question, you press star, then one on your telephone keypad. To try your question, please press star, then two.

Speaker #1: Please note, this event is being recorded. I would now turn the conference over to Chris Gough, Vice President Investor Relations. Please go ahead.

Speaker #3: We believe Edgewell today is stronger, more focused, and better positioned than it was just a few years ago. Our confidence is not based on any single quarter, rather it is based on a series of actions and investments that have strengthened the business, and we believe position us to deliver improved performance over time.

Rod Little: We believe Edgewell today is stronger, more focused, and better positioned than it was just a few years ago. Our confidence is not based on any single quarter. It is based on a series of actions and investments that have strengthened the business, and we believe position us to deliver improved performance over time. There are four factors in particular that give us confidence in the path ahead, including our setup heading into fiscal 2027. First, we have fundamentally improved our ability to execute. Over the last several years, we have strengthened our leadership team, improved commercial capabilities, enhanced our analytics and revenue growth management tools, simplified the organization, and increased accountability throughout the business. These investments have strengthened how we plan, execute, and allocate resources across the business.

Speaker #2: Good morning, everyone, and thank you for joining us this morning for Edgewell's third quarter fiscal year 2026 earnings call. With me this morning are Rod Little, our President and Chief Chief Executive Officer, and Fran Weissman, our Chief Financial Officer.

Speaker #2: Rod will kick off the call and then hand it over to Fran to discuss our third quarter 2026 results and full-year fiscal 2026 outlook.

Speaker #3: There are four factors in particular that give us confidence in the path ahead, including our setup heading into fiscal 2027. First, we have fundamentally improved our ability to execute.

Speaker #2: We will then transition to Q&A. This call is being recorded and will be available via replay on our website, www.edgewell.com. During this call, we may make statements about our expectations for future plans and performance.

Speaker #3: Over the last several years, we have strengthened our leadership team, improved commercial capabilities, enhanced our analytics and revenue growth management tools, simplified the organization, and increased accountability throughout the business.

Speaker #3: These investments have strengthened how we plan, execute, and allocate resources across the business. Sustainable performance ultimately depends on consistent execution, and we believe the capabilities we have built are beginning to show up more clearly in our results.

Rod Little: Sustainable performance ultimately depends on consistent execution. We believe the capabilities we have built are beginning to show up more clearly in our results. Second, we've become a more focused company. Following the FemCare divestiture, our portfolio is simpler and allows us to direct a greater share of investment towards our highest return growth opportunities. In particular, we have increased investment behind our global focus brands, concentrating advertising, innovation, and commercial resources where we believe they can create the greatest long-term value. In addition to the campaigns we outlined last quarter for Schick, Billie, and Cremo, this quarter saw another step-up in investment, including year two of our Hawaiian Tropic campaign. We believe this focus is helping create a stronger foundation for sustainable growth, profitability, and cash generation. Third, we are seeing encouraging evidence that our US business is improving. The US remains our largest value creation opportunity.

Speaker #3: Second, we've become a more focused company. Following the feminine care divestiture, our portfolio is simpler and allows us to direct a greater share of investment towards our highest return growth opportunities.

Speaker #2: Any such statements are forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995, which reflect our current views with respect to future events, plans, or prospects.

Speaker #3: In particular, we have increased investment behind our global-focused brands, concentrating advertising, innovation, and commercial resources where we believe they can create the greatest long-term value.

Speaker #2: These statements are based on assumptions and are subject to various risks and uncertainties, including those described under the captioned risk factors in our annual report on Form 10-K for the year ended September 30, 2025, and as may be amended in our quarterly reports on Form 10-Q filed with the SEC.

Speaker #3: In addition to the campaigns we outlined last quarter, for Schick, Billy, and Cremo, this quarter saw another step up in investment, including year two of our Hawaiian Tropic campaign.

Speaker #3: We believe this focus is helping create a stronger foundation for sustainable growth, profitability, and cash generation. Third, we are seeing encouraging evidence that our U.S.

Speaker #3: business is improving. The U.S. remains our largest value creation opportunity. During the quarter, North America returned to growth as commercial execution improved, distribution gains increased, and a number of our strategic initiatives gained traction.

Rod Little: During the quarter, North America returned to growth as commercial execution improved, distribution gains increased. A number of our strategic initiatives gained traction. Importantly, we are seeing encouraging proof points across several of the areas where we have been concentrating investment. Hawaiian Tropic delivered strong growth during the quarter, supported by positive brand momentum, increased distribution, and continued retailer support. Cremo continued to gain traction across mass retail through expanded distribution and strong consumer demand. Schick delivered encouraging performance across key portions of the portfolio. We also continue to see positive momentum across the Billie shave portfolio, which delivered continued share growth despite a highly competitive category environment. Notably, the progress we're seeing is not limited to sales results alone. Across many of our priority brands, awareness metrics are improving.

Speaker #2: Which is available at the Investor Relations section of our website. This non-GAAP information is provided as a supplement to, not as a substitute for, not superior to, measures of financial performance prepared in accordance with GAAP.

Speaker #3: Importantly, we are seeing encouraging proof points across several of the areas where we have been concentrating investment. Hawaiian Tropic delivered strong growth during the quarter, supported by positive brand momentum, increased distribution, and continued retailer support.

Speaker #3: Cremo continued to gain traction across mass retail through expanded distribution, and strong consumer demand. While Schick delivered encouraging performance across key portions of the portfolio, we also continue to see positive momentum across the Billy Shave portfolio, which delivered continued share growth despite a highly competitive category environment.

Speaker #2: With that, I'd like to turn the call over to Rod.

Speaker #3: Notably, the progress we're seeing is not limited to sales results alone. Across many of our priority brands, awareness metrics are improving. Branded search activity has increased this quarter, and our recent brand list studies indicate strengthening consumer engagement and brand relevance.

Speaker #3: We saw strength across sun care, grooming, and branded wet shave. Reflecting improved execution across the business, adjusted earnings per share, and adjusted EBITDA were ahead of our expectations.

Rod Little: Branded search activity has increased this quarter. Our recent brand lift studies indicate strengthening consumer engagement and brand relevance. These indicators may not immediately translate into marketplace results. We believe they provide additional evidence that the investments we are making behind our brands are resonating with consumers. The progress we are seeing is becoming increasingly broad-based. It is not being driven by a single initiative, customer, or brand. We are seeing positive indicators across distribution, brand performance, and category execution, which gives us increasing confidence that our focused investments are beginning to translate into improved marketplace results. We still have work to do and recognize that performance will not improve in a straight line every quarter. We believe the results we delivered in North America this quarter reflect meaningful progress and are consistent with the trajectory we expected to see.

Speaker #3: While these indicators may not immediately translate into marketplace results, we believe they provide additional evidence that the investments we are making behind our brands are resonating with consumers.

Speaker #3: The progress we are seeing is becoming increasingly broad-based. It is not being driven by a single initiative, customer, or brand. Rather, we are seeing positive indicators across distribution, brand performance, and category execution.

Speaker #3: Despite market uncertainty and increased pressure, we have stayed the course, and the destination remains unchanged. We grew sales in the third quarter, we expect stronger overall growth in Q4, and with growth across international markets and in North America, our outlook for full year adjusted earnings per share and adjusted EBITDA is unchanged at the midpoint.

Speaker #3: Which gives us increasing confidence that our focused investments are beginning to translate into improved marketplace results. While we still have work to do and recognize that performance will not improve in a straight line every quarter, we believe the results we delivered in North America this quarter reflect meaningful progress and are consistent with the trajectory we expected to see.

Speaker #3: Fourth, we are accelerating the transformation of our operating model. As we look ahead, we see meaningful opportunities to further simplify the organization, improve speed and agility, enhance decision-making, and create a structurally lower cost base.

Rod Little: Fourth, we are accelerating the transformation of our operating model. As we look ahead, we see meaningful opportunities to further simplify the organization, improve speed and agility, enhance decision-making, and create a structurally lower cost base. These actions are intended to help offset stranded costs associated with the FemCare divestiture while positioning Edgewell to become what we believe will be a faster, more efficient, and more responsive organization. An important part of this effort is increased investment in technology, advanced analytics, and AI-enabled capabilities. We see significant opportunities to leverage these tools to improve consumer insights, accelerate innovation, enhance commercial execution, and drive productivity across the enterprise. We believe these initiatives, together with our broader transformation and productivity efforts, will help create a simpler, more agile organization that is better positioned to deliver more consistent growth, profitability, and cash flow over time, even in a dynamic external environment.

Speaker #3: While the operating environment remains dynamic and challenging, consumption trends remained relatively stable during the quarter. North America returned to growth, and our priority brands continued to gain traction.

Speaker #3: These actions are intended to help offset stranded costs associated with the feminine care divestiture while positioning Edgewell to become what we believe will be a faster, more efficient, and more responsive organization.

Speaker #3: We believe Edgewell today is stronger, more focused, and better positioned than it was just a few years ago. Our confidence has not based on any single quarter.

Speaker #3: An important part of this effort is increased investment in technology, advanced analytics, and AI-enabled capabilities. We see significant opportunities to leverage these tools to improve consumer insights accelerate innovation, enhance commercial execution, and drive productivity across the enterprise.

Speaker #3: Rather, it is based on a series of actions and investments that have strengthened the business, and we believe position us to deliver improved performance over time.

Speaker #3: We believe these initiatives, together with our broader transformation and productivity efforts, will help create a simpler, more agile organization that is better positioned to deliver more consistent growth, profitability, and cash flow over time.

Speaker #3: Even in a dynamic external environment. We look forward to providing additional details on these initiatives and our broader fiscal 2027 priorities during our year-end earnings call in November.

Rod Little: We look forward to providing additional details on these initiatives and our broader fiscal 2027 priorities during our year-end earnings call in November. One important example of this transformation is our Wet Shave manufacturing consolidation, which is the largest operational initiative we have undertaken since becoming a standalone company in 2015. The project's objectives are straightforward: simplify our manufacturing network, modernize our capabilities, improve service levels, and create a structurally lower cost position. As we discussed previously, the project has created some temporary disruption as we transition production across the network. While those impacts extended longer than originally anticipated and affected supply greater than expected in certain international markets during Q3, we continue to make meaningful progress against the implementation plan.

Speaker #3: One important example of this transformation is our wet shave manufacturing consolidation. Which is the largest operational initiative we have undertaken since becoming a standalone company in 2015.

Speaker #3: The project's objectives are straightforward: simplify our manufacturing network, modernize our capabilities, improve service levels, and create a structurally lower cost position. As we've discussed previously, the project has created some temporary disruption as we transition production across the network.

Speaker #3: In particular, we have increased investment behind our globally focused brands, concentrating advertising, innovation, and commercial resources where we believe they can create the greatest long-term value.

Speaker #3: While those impacts extended longer than originally anticipated and affected supply greater than expected in certain international markets during the third quarter, we continue to make meaningful progress against the implementation plan.

Speaker #3: In addition to the campaigns we outlined last quarter for Schick, Billy, and Cremo, this quarter saw another step up in investment, including year two of our Hawaiian Tropic campaign.

Speaker #3: As network performance improves, we expect to further strengthen production volumes, service levels, and overall operational effectiveness, positioning the business to deliver meaningful productivity, margin, working capital, and free cash flow benefits over time.

Rod Little: As network performance improves, we expect to further strengthen production volumes, service levels, and overall operational effectiveness, positioning the business to deliver meaningful productivity, margin, working capital, and free cash flow benefits over time. Finally, disciplined capital allocation remains central to our strategy. We plan to continue investing behind the business where we see the highest returns, strengthening the balance sheet, reducing net debt leverage, and maintaining the flexibility necessary to create long-term shareholder value. Taken together, these actions give us confidence that Edgewell is moving on to a better performance path.

Speaker #3: We believe this focus is helping create a stronger foundation for sustainable growth, profitability, and cash generation. Third, we are seeing encouraging evidence that our U.S.

Speaker #3: Finally, disciplined capital allocation remains central to our strategy. We plan to continue investing behind the business where we see the highest returns, strengthening the balance sheet, reducing net debt leverage, and maintaining the flexibility necessary to create long-term shareholder value.

Speaker #3: Business is improving. The U.S. remains our largest value creation opportunity. During the quarter, North America returned to growth as commercial execution improved, distribution gains increased, and a number of our strategic initiatives gained traction.

Speaker #3: Taken together, these actions give us confidence that Edgewell is moving on to a better performance path. While it remains too early to provide specific guidance for fiscal 2027, the combination of four factors—one, better execution; two, a more focused portfolio; three, improving U.S.

Rod Little: While it remains too early to provide specific guidance for fiscal 2027. The combination of four factors, one, better execution, two, a more focused portfolio, three, improving US performance, and four, a major operational transformation approaching its inflection point, is why we believe we will enter fiscal 2027 from a stronger position than we have been in several years. Q3 provided further evidence that this strategy is working. We returned to organic net sales growth, North America returned to growth, we delivered earnings ahead of expectations, reinforcing our confidence in the path ahead. With that, I'll turn it over to Fran to walk through our Q3 results and outlook in greater detail.

Speaker #3: Cremo continued to gain traction across mass retail through expanded distribution and strong consumer demand. While Schick delivered encouraging performance across key portions of the portfolio, we also continue to see positive momentum across the Billy Shave portfolio, despite a highly competitive category environment.

Speaker #3: performance; and four, a major operational transformation approaching its inflection point—is why we believe we will enter fiscal 27 from a stronger position than we have been in several years.

Speaker #3: The third quarter provided further evidence that this strategy is working. We returned to organic net sales growth, North America returned to growth, and we delivered earnings ahead of expectations, reinforcing our confidence in the path ahead.

Speaker #3: Notably, the progress we’re seeing is not limited to sales results alone. Across many of our priority brands, awareness metrics are improving. Branded search activity has increased this quarter, and our recent brand lift studies indicate strengthening consumer engagement and brand relevance.

Speaker #3: With that, I'll turn it over to Fran to walk through our third quarter results and outlook in greater detail.

Speaker #1: Thank you, Rod. As Rod outlined the third quarter marked an important step forward in our fiscal 26 progression with organic sales returning to growth, adjusted EBITDA, and adjusted EPS ahead of our expectations.

Fran Weissman: Thank you, Rod. As Rod outlined, Q3 marked an important step forward in our fiscal 2026 progression, with organic sales returning to growth, adjusted EBITDA and adjusted EPS ahead of our expectations. I'll now walk through the quarter in more detail, beginning with top-line performance, then the P&L, and our outlook for the balance of fiscal 2026. Now let's turn to our performance in the quarter on a continuing operations basis. Organic net sales increased 1.1% in the quarter, as strong performance across grooming, sun and skin, along with growth in branded Wet Shave, more than offset continued weakness in private label Wet Shave, driven by the supply disruptions previously discussed. North America organic sales increased 3%, driven by double-digit grooming growth, mid-single-digit growth in sun and skin, and a return to growth in branded Wet Shave.

Speaker #1: I'll now walk through the quarter in more detail, beginning with top-line performance, then the P&L, and our outlook for the balance of fiscal 26.

Speaker #1: Now let's turn to our performance in the quarter on a continuing operations basis. Organic net sales increased 1.1% in the quarter, as strong performance across grooming, sun and skin, along with growth in branded wet shave, more than offset continued weakness in private label wet shave, driven by the supply disruptions previously discussed.

Speaker #3: Which gives us increasing confidence that our focused investments are beginning to translate into improved marketplace results. While we still have work to do in recognizing that performance will not improve in a straight line every quarter, we believe the results we delivered in North America this quarter reflect meaningful progress and are consistent with the trajectory we expected to see.

Speaker #1: North America organic sales increased 3%, driven by double-digit grooming growth, mid-single-digit growth in sun and skin, and a return to growth in branded wet shave.

Fran Weissman: International organic sales declined 1.4%, reflecting the impact of the Middle East conflict, lower private label sales due to the temporary supply disruption discussed earlier, and a weaker than anticipated start to the sun season in Europe and LatAm. Importantly, we continue to deliver growth in several of our key international markets, and we expect overall international to return to growth in the Q4 as supply chain challenges improve. On a year-to-date basis, we have grown or held dollar market share in nearly 70% of our markets. Specifically in the US, branded unit market share has held steady or increased in 39 of the past 43 weeks. Wet Shave organic net sales declined 1.9% as continued supply disruption within private label more than offset growth across the branded portfolio.

Speaker #1: International organic sales declined 1.4%, reflecting the impact of the Middle East conflict, lower private label sales, due to the temporary supply disruption discussed earlier, and a weaker-than-anticipated start to the sun season in Europe and Latvia.

Speaker #3: These actions are intended to help offset stranded costs associated with the feminine care divestiture, while positioning Edgewell to become what we believe will be a faster, more efficient, and more responsive organization.

Speaker #1: Importantly, we continue to deliver growth in several of our key international markets, and we expect overall international to return to growth in the fourth quarter as supply chain challenges improve.

Speaker #3: An important part of this effort is increased investment in technology, advanced analytics, and AI-enabled capabilities. We see significant opportunities to leverage these tools to improve consumer insights, accelerate innovation, enhance commercial execution, and drive productivity across the enterprise.

Speaker #1: On a year-to-date basis, we have grown or held dollar market share in nearly 70% of our markets, specifically in the U.S., branded unit market share has held steady or increased in 39 of the past 43 weeks.

Speaker #1: Wet shave organic net sales declined 1.9%, as continued supply disruption within private label more than offset growth across the branded portfolio, encouragingly branded wet shave returned to growth during the quarter, reflecting improving performance across our focus brands and that our commercial initiatives in the U.S.

Fran Weissman: Encouragingly, branded Wet Shave returned to growth during the quarter, reflecting improving performance across our focused brands, and that our commercial initiatives in the US are beginning to gain traction. In US razors and blades, category consumption increased 160 basis points in a heightened competitive and promotional environment. Our overall share remained pressured by private label availability constraints, but branded share declined 40 basis points as we cycled elevated promotional activity from a year ago and changes in our approach to couponing, primarily in the drug channel. Sun and skincare organic net sales increased 5%, driven by mid-single-digit growth in sun in North America, strong global grooming performance, and continued growth in skincare. Hawaiian Tropic, Cremo, and Wet Ones all delivered encouraging results in the quarter, supported by increased distribution, innovation, and brand investment. Cremo completed its seventh consecutive quarter of approximately 20% or more growth in grooming.

Speaker #1: are beginning to gain traction. In U.S. razors and blades, category consumption increased 160 basis points. In a heightened competitive and promotional environment, our overall share remained pressured by private label availability constraints, but branded share declined 40 basis points, as we cycled, elevated promotional activity from a year ago, and changes in our approach to couponing primarily in the drug channel.

Speaker #3: The project's objectives are straightforward: simplify our manufacturing network, modernize our capabilities, improve service levels, and create a structurally lower cost position. As we've discussed previously, the project has caused some temporary disruption as we transition production across the network.

Speaker #1: Sun and skincare organic net sales increased 5%, driven by mid-single-digit growth in sun in North America, strong global grooming performance, and continued growth in skincare.

Speaker #1: Hawaiian Tropic, Cremo, and Wet Ones all delivered encouraging results in the quarter, supported by increased distribution, innovation, and brand investment. Cremo completed its seventh consecutive quarter of approximately 20% or more growth in grooming.

Speaker #1: In the U.S., sun care category consumption declined approximately 2% in the quarter. Our value share declined 60 basis points, as expected market share declines in banana boat more than offset 110 basis points share growth in Hawaiian Tropic.

Fran Weissman: In the US, sun care category consumption declined approximately 2% in the quarter. Our value share declined 60 basis points as expected market share declines in Banana Boat more than offset 110 basis points share growth in Hawaiian Tropic. As sun care consumption can shift meaningfully between quarters depending on weather patterns and the timing of seasonal demand, we believe a broader year-to-date market share view provides a more accurate read on the season than any single quarter. Looking at the category year to date, consumption through mid-July increased by 1.4% and overall market share was flat, generally in line with our expectations. Now turning to the P&L. Adjusted gross margin declined 30 basis points compared to prior year and broadly in line with our expectations. While margin ultimately came in as planned, the underlying drivers were somewhat different than what we anticipated entering the quarter.

Speaker #1: As sun care consumption can shift meaningfully between quarters depending on weather patterns and the timing of seasonal demand, we believe a broader year-to-date market share view provides a more accurate read on the season than any single quarter.

Speaker #1: Looking at the category year-to-date, consumption through mid-July increased by 1.4%, and overall market share was flat, generally in line with our expectations. Now turning to the P&L.

Speaker #3: Taken together, these actions give us confidence that Edgewell is moving on to a better performance path. While it remains too early to provide specific guidance for fiscal 2027, the combination of four factors one, better execution; two, a more focused portfolio; three, improving U.S.

Speaker #1: Adjusted gross margin declined 30 basis points, compared to prior year, and broadly in line with our expectations. While margin ultimately came in as planned, the underlying drivers were somewhat different than what we anticipated entering the quarter.

Speaker #3: performance; and four, a major operational transformation approaching its inflection point, is why we believe we will enter fiscal 27 from a stronger position than we have been in several years.

Speaker #1: Inflation particularly across certain commodities and input costs was higher than expected, however those pressures were largely offset by modest tariff refunds and higher productivity realized during the quarter.

Fran Weissman: Inflation, particularly across certain commodities and input costs, was higher than expected. However, those pressures were largely offset by modest tariff refunds and higher productivity realized during the quarter. As compared to prior year, productivity savings of approximately 200 basis points and 40 basis points of favorable currency movements were more than offset by unfavorable mix and promotional levels, as well as inflation and net tariff impacts. A&P expenses were 14.6% of net sales, up from 13.6% last year, as spending increased to support the new campaign launches as expected. While this was slightly below the levels we outlined for the quarter, the difference is largely timing related, as our outlook for the full year is unchanged.

Speaker #1: As compared to prior year, productivity savings of approximately 200 basis points and 40 basis points of favorable currency movements were more than offset by unfavorable mix and promotional levels, as well as inflation and net tariff impacts.

Speaker #3: With that, I'll turn it over to Fran to walk through our third-quarter results and outlook in greater detail.

Speaker #1: Thank you, Rod. As Rod outlined, the third quarter marked an important step forward in our fiscal '26 progression, with organic sales returning to growth, and adjusted EBITDA and adjusted EPS ahead of our expectations.

Speaker #1: A&P expenses were 14.6% of net sales, up from 13.6% last year, as spending increased to support the new campaign launches as expected. While this was slightly below the levels we outlined for the quarter, the difference was largely timing-related, as our outlook for the full year is unchanged.

Speaker #1: I'll now walk through the quarter in more detail, beginning with top-line performance, then the P&L, and our outlook for the balance of fiscal 26.

Speaker #1: Adjusted SG&A was 18.4% of net sales, compared to 17.6% last year, primarily driven by higher incentive compensation and unfavorable currency impacts in the current year, partly offset by lower people and consulting expenses.

Fran Weissman: Adjusted SG&A was 18.4% of net sales, compared to 17.6% last year, primarily driven by higher incentive compensation and unfavorable currency impacts in the current year, partly offset by lower people and consulting expenses. Adjusted operating income was $53 million, or 9.3% of net sales, compared to $63.6 million, or 11.3% of net sales last year, primarily reflecting the impact of lower gross margins, higher A&P and SG&A expenses. GAAP diluted net earnings per share from continuing operations were $0.26, compared to $0.46 in Q3 of fiscal 2025. Adjusted earnings per share from continuing operations were $0.72 and flat to prior-year quarter. Currency favorably impacted adjusted EPS by $0.04 in the quarter. Adjusted EBITDA was $78.9 million, inclusive of a $2.1 million favorable currency impact, compared to $81.2 million in the prior year.

Speaker #1: Adjusted operating income was 53 million or 9.3% of net sales, compared to 63.6 million or 11.3% of net sales last year. Primarily reflecting the impact of lower gross margins, higher A&P, and SG&A expenses.

Speaker #1: North America organic sales increased 3%, driven by double-digit grooming growth, mid-single-digit growth in sun and skin, and a return to growth in branded wet shave.

Speaker #1: Gap diluted net earnings per share from continuing operations were 26 cents, compared to 46 cents in the third quarter of fiscal '25. Adjusted earnings per share from continuing operations were 72 cents, and flat to prior year quarter.

Speaker #1: Currency favorably impacted adjusted EPS by 4 cents in the quarter. Adjusted EBITDA was 78.9 million, inclusive of a 2.1 million favorable currency impact, compared to 81.2 million in the prior year.

Speaker #1: Net cash provided by operating activities was approximately 47 million for the first nine months of fiscal '26, compared to approximately 44 million last year, primarily due to changes in working capital.

Fran Weissman: Net cash provided by operating activities was approximately $47 million for the first nine months of fiscal 2026, compared to approximately $44 million last year, primarily due to changes in working capital. For Q3 of fiscal 2026, cash provided from operating activities was approximately $119 million. As a reminder, cash flow is presented on a consolidated basis for both continuing and discontinued operations. We continued our quarterly dividend payout, declaring a $0.15 per share dividend for Q3, and returned approximately $7 million to shareholders via dividend. Now turning to our outlook for fiscal 2026. Consistent with Rod's comments, our underlying expectations for the year and H2 are intact. As we enter the final quarter of the fiscal year, we are updating our outlook to reflect year-to-date performance and narrowing our guidance ranges.

Speaker #1: For the third quarter of fiscal '26, cash provided from operating activities was approximately 119 million. As a reminder, cash flow is presented on a consolidated basis, for both continuing and discontinued operations.

Speaker #1: Wet shave organic net sales declined 1.9%, as continued supply disruption within private label more than offset growth across the branded portfolio. Encouragingly, branded wet shave returned to growth during the quarter, reflecting improving performance across our focus brands and in our commercial initiatives in the U.S.

Speaker #1: We continued our quarterly dividend payout, declaring a 15 cents per share dividend for the third quarter, and returned approximately 7 million to shareholders via dividend.

Speaker #1: are beginning to gain traction. In U.S. razors and blades, category consumption increased 160 basis points. In a heightened competitive and promotional environment, our overall share remained pressured by private label availability constraints, but branded share declined 40 basis points, as we cycled elevated promotional activity from a year ago and changes in our approach to couponing, primarily in the drug channel.

Speaker #1: Now turning to our outlook for fiscal '26. Consistent with Rod's comments, our underlying expectations for the year and the second half are intact. As we enter the final quarter of the fiscal year, we are updating our outlook to reflect year-to-date performance and narrowing our guidance ranges.

Speaker #1: Following our return to organic sales growth in third quarter, we expect growth to strengthen in the fourth quarter, supported by a return to normalized growth trends in international and continued growth in North America.

Fran Weissman: Following our return to organic sales growth in Q3, we expect growth to strengthen in Q4, supported by a return to normalized growth trends in international and continued growth in North America. We also continue to expect material gross margin expansion in Q4, driven primarily by significant productivity savings, the cycling of one-time costs from a year ago, and favorable foreign exchange. While we have modestly reduced our full-year gross margin rate outlook to reflect a somewhat more challenging cost environment and the impact of lower international sales in Q3, we continue to expect gross margin expansion for the full year. Importantly, we remain committed to our planned level of investment behind the business as our expectations for A&P are largely unchanged. We expect favorable SG&A and financing items to provide some offset.

Speaker #1: Sun and skincare organic net sales increased 5%, driven by mid-single-digit growth in sun in North America, strong global grooming performance, and continued growth in skincare.

Speaker #1: We also continue to expect material gross margin expansion in the fourth quarter, driven primarily by significant productivity savings, the cycling of one-time costs from a year ago, and favorable foreign exchange.

Speaker #1: While we have modestly reduced our full-year gross margin rate outlook, to reflect a somewhat more challenging cost environment and the impact of lower international sales in the third quarter, we continue to expect gross margin expansion for the full year.

Speaker #1: In the U.S., sun care category consumption declined approximately 2% in the quarter. Our value share declined 60 basis points, as expected market share declines in Banana Boat more than offset 110 basis points share growth in Hawaiian Tropic.

Speaker #1: Importantly, we remain committed to our planned level of investment behind the business, as our expectations for A&P are largely unchanged. We expect favorable SG&A and financing items to provide some offset.

Speaker #1: As sun care consumption can shift meaningfully between quarters, depending on weather patterns and the timing of seasonal demand, we believe a broader year-to-date market share view provides a more accurate read on the season than any single quarter.

Speaker #1: Overall, our outlook remains consistent with the framework we outlined at the beginning of the year. While the operating environment remains dynamic, we continue to expect stronger fourth-quarter performance, gross margin expansion, and adjusted EBITDA and adjusted EPS, and free cash flow that remain largely in line with prior expectations.

Fran Weissman: Overall, our outlook remains consistent with the framework we outlined at the beginning of the year. While the operating environment remains dynamic, we continue to expect stronger Q4 performance, gross margin expansion, and adjusted EBITDA and adjusted EPS and free cash flow that remain largely in line with prior expectations. Just as importantly, we are maintaining our planned investment levels behind our brands and strategic priorities while continuing to improve productivity and offset external pressures. With that context, I'll walk through the core metrics of our fiscal 2026 outlook. Organic net sales are expected to be in the range of flat to +50 basis points. Adjusted EPS is expected to be in the range of $1.80 to $2 per share. Adjusted EBITDA is expected to be in the range of $250 million to $260 million.

Speaker #1: Just as importantly, we are maintaining our planned investment levels behind our brands and strategic priorities, while continuing to improve productivity and offset external pressures.

Speaker #1: Adjusted gross margin declined 30 basis points compared to the prior year and was broadly in line with our expectations. While margin ultimately came in as planned, the underlying drivers were somewhat different than what we anticipated entering the quarter.

Speaker #1: With that context, I'll walk through the core metrics of our fiscal '26 outlook, organic net sales are expected to be in the range of flat to plus 50 basis points.

Speaker #1: Inflation, particularly across certain commodities and input costs, was higher than expected; however, those pressures were largely offset by modest tariff refunds and higher productivity realized during the quarter.

Speaker #1: Adjusted EPS is expected to be in the range of $1.80 to $2 per share. Adjusted EBITDA is expected to be in the range of $250 to $260 million.

Speaker #1: Compared to the prior year, productivity savings of approximately 200 basis points and 40 basis points of favorable currency movements were more than offset by unfavorable mix and promotional levels, as well as inflation and net tariff impacts.

Speaker #1: Adjusted free cash flow excluding the impacts of Femcare divestiture is expected to be approximately $80 to $110 million. And we expect adjusted net debt leverage to end the year in the range of 3.3 to 3.4 times, which includes an estimated 0.3 to 0.4 negative turn impact from temporary Femcare divestiture timing and related items.

Fran Weissman: Adjusted free cash flow, excluding the impacts of FemCare divestiture, is expected to be approximately $80 to 110 million. We expect adjusted net debt leverage to end the year in the range of 3.3x to 3.4x, which includes an estimated 0.3 to 0.4 negative term impact from temporary FemCare divestiture timing and related items. Taken together, we believe the actions we've implemented position the business well to finish fiscal 2026 on a strong note and enter fiscal 2027 from a position of strength. For the specific guidance ranges, I would refer you to the press release issued earlier today. With that, I'll turn the call over to the operator for Q&A.

Speaker #1: AMP expenses were 14.6% of net sales, up from 13.6% last year, as spending increased to support the new campaign launches, as expected. While this was slightly below the levels we outlined for the quarter, the difference was largely timing related, as our outlook for the full year is unchanged.

Speaker #1: Taken together, we believe the actions we've implemented position the business well to finish fiscal '26 on a strong note and enter fiscal '27 from a position of strength.

Speaker #1: For the specific guidance ranges, I would refer you to the press release issued earlier today. With that, I'll turn the call over to the operator for Q&A.

Speaker #2: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your hands up before pressing the keys.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. Any time your question has been addressed and you would like to withdraw it, please press star, then two. At this time, we will pause momentarily to assemble the roster. The first question comes from Peter Grom with UBS.

Speaker #2: At any time your question has been addressed and you would like to withdraw it, please press star then two. At this time, we will pause momentarily to assemble the roster.

Speaker #2: And the first question comes from Peter Grom with UBS.

Speaker #3: Great. Thank you. Good morning, everybody. I hope you're doing well. So I wanted to start just on the top line and maybe just thinking about the fourth quarter a little bit.

Peter Grom: Great, thank you. Good morning, everybody. Hope you're doing well. I wanted to start just on the top line and maybe just thinking about Q4 a little bit. Can you maybe just help us understand the confidence behind the implied, you know, acceleration in Q4, especially kind of given the weaker Wet Shave and international results in Q3?

Speaker #3: So can you maybe just help us understand the confidence behind the implied acceleration in the fourth quarter? Especially kind of given the weak or wet shave in international results in Q3.

Speaker #4: Yeah. Good morning, Peter. Thank you for the question there. I mean, that's the focus for us has been the focus. We've said from the beginning of the year we provided the guide that this was going to be a back half inflection to growth.

Rod Little: Good morning, Peter. Thank you for the question there. I mean, that's the focus for us, it's been the focus we've said from the beginning of the year we provided the guide, that this was gonna be a back half inflection to growth. You see the result for Q3, as we look to Q4, implied is an acceleration in Q4 off of Q3. I think we feel confident in that. All segments of the portfolio from a branded perspective are growing in Q3. We see that continuing in Q4. Q3, as you would have seen, was impacted by what is more of a transitory impact around supply chain, primarily around private label products, into both Europe and Latin America. As we cycle that and look to Q4, that improves.

Speaker #1: Net cash provided by operating activities was approximately $47 million for the first nine months of fiscal '26, compared to approximately $44 million last year, primarily due to changes in working capital.

Speaker #4: You see the result for Q3, and as we look to Q4, implied is an acceleration in Q4 off of Q3. I think we feel confident in that.

Speaker #1: For the third quarter of fiscal '26, cash provided from operating activities was approximately $119 million. As a reminder, cash flows are presented on a consolidated basis for both continuing and discontinued operations.

Speaker #4: All segments of the portfolio from a branded perspective are growing in Q3. We see that continuing in Q4. Q3, as you would have seen was impacted by what is more of a transitory impact around supply chain primarily around private label products into both Europe and Latin America.

Speaker #1: We continued our quarterly dividend payout, declaring a $0.15 per share dividend for the third quarter, and returned approximately $7 million to shareholders via the dividend.

Speaker #1: Now, turning to our outlook for fiscal '26. Consistent with Rod's comments, our underlying expectations for the year and the second half are intact. As we enter the final quarter of the fiscal year, we are updating our outlook to reflect year-to-date performance and narrowing our guidance ranges.

Speaker #4: And as we cycle that and look to Q4, that improves. And July's data point that we have line of sight too, and we've seen what we expected there.

Rod Little: July is a data point that we have line of sight to, and we've seen what we expected there in July. I think we feel good about Q4. The other thing you're doing, you're seeing our A&P spend for the year be unchanged. We've not changed or reduced that spend on a full year basis. There is a profile shift as we looked at the execution from Q3 to Q4. Implied in the forward-looking guide is more spend in Q4 as well, which gives us confidence with the campaigns we have in place, July in the books, and that spend, that we can deliver the step up. I don't know if you'd add anything, Fran.

Speaker #4: In July. So I think we feel good about Q4. The other thing you're doing, you're seeing our A&P spend for the year be unchanged.

Speaker #1: Following our return to organic sales growth in the third quarter, we expect growth to strengthen in the fourth quarter, supported by a return to normalized growth trends internationally and continued growth in North America.

Speaker #4: We've not changed or reduced that spend on a full-year basis. There is a profile shift as we looked at the execution from Q3 to Q4.

Speaker #4: So implied in the forward-looking guide is more spend in Q4 as well, which gives us confidence with the campaigns we have in place. July in the books.

Speaker #4: And that spend that we can deliver the step up. I don't know if you'd add anything, Fran.

Speaker #1: While we have modestly reduced our full-year gross margin rate outlook to reflect a somewhat more challenging cost environment and the impact of lower international sales in the third quarter, we continue to expect gross margin expansion for the full year.

Speaker #5: Yeah. I think you covered all the points, Rod. Maybe a finer point on Q3 performance for international. We do view this as transitory. The impact was probably about 350 to 400 basis points to international.

Fran Weissman: I think you covered all the points, Rod. Maybe a finer point on Q3 performance for international. We do view this as transitory. The impact was probably about 350 to 400 basis points to international. Their run rate would have been right around 3%, which is where we expected them to be. Looking ahead to Q4, we're expecting mid-single digit growth, which is in line with our overall expectations, especially on a back-ended sun season.

Speaker #1: Importantly, we remain committed to our planned level of investment behind the business, as our expectations for AMP are largely unchanged. We expect favorable SG&A and financing items to provide some offset.

Speaker #5: So their run rate would have been right around 3%, which is where we expected them to be. And looking ahead to Q4, we're expecting mid-single-digit growth, which is in line with our overall expectations.

Speaker #1: Overall, our outlook remains consistent with the framework we outlined at the beginning of the year. While the operating environment remains dynamic, we continue to expect stronger fourth-quarter performance, gross margin expansion, and adjusted EBITDA, adjusted EPS, and free cash flow that remain largely in line with prior expectations.

Speaker #5: Especially on a back-ended sun season.

Speaker #4: Great. And then I guess I know we're not getting guidance today, and the category growth remains volatile. But I guess as you look forward to '27, do you believe you're kind of exiting '26 with a better underlying growth profile than maybe the results reported in Q3 would suggest?

Peter Grom: Great. I guess, I know we're not getting guidance today and the category growth remains volatile, but I guess as you look forward to 2027, do you believe you're kind of exiting 2026 with a better underlying growth profile than maybe the results reported in Q3, would you guess?

Speaker #3: Yeah. I think, Peter, we feel good in that if you go back a year ago, when we provided the guide for the year, there was an implied step up in the second half of the year.

Rod Little: I think, Peter, we feel good in that if you go back a year ago when we provided the guide for the year, there was an implied step-up in H2. It was more in the range of our old algorithm that we had talked about, kind of in that low double digit growth rate. Now we sit here in H2, and we have line of sight for H2 to that. I think as we look at how we move forward, the brand momentum, the brand strength we have, how we're coming through the supply chain manufacturing change, that headwind here that you saw in Q3 is largely going to be behind us. We can't predict that perfectly.

Speaker #1: With that context, I'll walk through the core metrics of our fiscal '26 outlook. Organic net sales are expected to be in the range of flat to plus 50 basis points.

Speaker #3: There was more in the range of our old algorithm that we had talked about, kind of in that low single-digit growth rate. And now we sit here in the back half of the year, and we have line of sight for the second half to that.

Speaker #1: Adjusted EPS is expected to be in the range of $1.80 to $2 per share. Adjusted EBITDA is expected to be in the range of $250 to $260 million.

Speaker #3: And I think as we look at how we move forward, the brand momentum, the brand strength we have, how we're coming through the supply chain manufacturing change, that headwind here that you saw in Q3 is largely going to be behind us.

Speaker #1: Adjusted free cash flow, excluding the impacts of the Femcare divestiture, is expected to be approximately $80 to $110 million. We expect adjusted net debt leverage to end the year in the range of 3.3 to 3.4 times, which includes an estimated 0.3 to 0.4 negative turn impact from temporary Femcare divestiture timing and related items.

Speaker #3: We can't predict that perfectly. So I think if you look at the second half in total, we think that's a good proxy as we look out to '27 for top-line growth rate.

Rod Little: I think if you look at the H2 in total, we think that's a good proxy as we look out to 2027 for top line growth rate. We should be growing next year. We're not ready to give guidance on that. We'll do that next quarter. We have increasing confidence that we can do that. I'll tell you, part of what's different today than a couple of years ago is the absolute strength we have in some of our brands. Cremo is now 20%+ for the seventh consecutive quarter. In the quarter just finished, Cremo grew 70%+ at the top retailer. In North America, it is now a top three brand in all of men's. That brand has tripled and headed towards a quadruple in a very short period of time. That provides real tailwinds to us.

Speaker #1: Taken together, we believe the actions we've implemented position the business well to finish fiscal '26 on a strong note and enter fiscal '27 from a position of strength.

Speaker #3: We should be growing next year. We're not ready to give guidance on that. We'll do that next quarter. But we have increasing confidence that we can do that.

Speaker #3: And I'll tell you, part of what's different today than a couple of years ago is the absolute strength we have in some of our brands.

Speaker #1: For the specific guidance ranges, I would refer you to the press release issued earlier today. With that, I'll turn the call over to the operator for Q&A.

Speaker #3: Cremos now 20-plus percent for the seventh consecutive quarter. In the quarter just finished, Cremos grew 70-plus percent at the top retailer. In North America, it is now a top three brand in all of MENS.

Speaker #2: At any time your question has been addressed and you would like to withdraw it, please press star, then two. At this time, we will pause momentarily to assemble the roster.

Speaker #3: That brand has tripled and headed towards a quadruple in a very short period of time. That provides real tailwinds to us. The other brand strength piece I would call out is Hawaiian Tropic.

Speaker #2: And the first question comes from Peter Grom with UBS.

Rod Little: The other brand strength piece I would call out is Hawaiian Tropic. A year ago, that was the number six brand in sun care. Today, it's the number four brand in sun care, and it's had the largest increase in household penetration in the category. It shows you the teams that are building these brands are doing an excellent job, and then as we go out to retailers, we talked about distribution outcomes. We had net gains in distribution this year. There's no reason we can't have at least neutral or better gains as we look to next year. I do think there's underlying strength. Again, we feel good about branded shave. In the quarter just finished, private label shave was down 10%. Branded shave was up nearly one. Right?

Speaker #3: A year ago, that was the number six brand in sun care. Today, it's the number four brand in sun care. And it's had the largest increase in household penetration in the category.

Speaker #3: Great. Thank you. Good morning, everybody. I hope you're doing well. So I wanted to start just on the top line and maybe just thinking about the fourth quarter a little bit.

Speaker #3: So it shows you the teams that are building these brands are doing an excellent job. And then as we go out to retail, as we talked about distribution outcomes, we had net gains in distribution this year.

Speaker #4: Yeah. Yeah. Good morning, Peter. Thank you for the question there. I mean, that's the focus for us. It's been the focus. We've said from the beginning of the year we provided the guide that this was going to be a back half inflection to growth.

Speaker #3: There's no reason we can't have at least neutral or better gains as we look to next year. So I do think there's underlying strength.

Speaker #3: And again, we feel good about branded shave. In the quarter just finished, private label shave was down 10%. Branded shave was up nearly one.

Speaker #4: You see the result for Q3. And as we look to Q4, implied is an acceleration in Q4 off of Q3. I think we feel confident in that.

Speaker #3: Right? And so as we sort the private label piece out, I think we feel good overall in our capabilities just being better to grow as we move forward.

Rod Little: As we sort the private label piece out, I think we feel good overall in our capabilities just being better to grow as we move forward.

Speaker #1: Great. Thank you so much. I'll pass it on.

Peter Grom: Great. Thank you so much. I'll pass it on.

Speaker #4: Thank you. Thanks, Peter. I'm for our next question, please.

Rod Little: Thank you. Thanks, Peter. Operator, next question, please.

Speaker #2: Yes. Next question comes from Chris Carey with Wells Fargo Securities.

Operator: Yes. The next question comes from Chris Carey with Wells Fargo Securities.

Speaker #6: Hi. Good morning, everybody.

Chris Carey: Hi, good morning, everybody.

Speaker #4: Good morning.

Rod Little: Morning.

Speaker #6: I wanted to ask first about gross margin. I think in fiscal Q4, your implied to deliver your best gross margin, and at least five years, I think clearly there was a restructure.

Fran Weissman: Morning.

Chris Carey: I wanted to ask first about gross margin. I think in fiscal Q4, you're implied to deliver your best gross margin in at least five years. I think, clearly there was not restructuring of the business, but your portfolio is different following the divestiture of Feminine Care. If you look at the last few quarters of gross margin delivery, inclusive of what's implied for Q4, it would be suggesting a decently higher run rate than what you're landing on the full year this year. Is there any reason why your gross margins shouldn't be up next year, given that you're operating a structurally higher gross margin business, or are there anomalies that you would highlight namely into the H2 gross margin that won't repeat?

Speaker #4: And as we cycle that and look to Q4, that improves. And July's data point that we have line of sight too, and we've seen what we expected there.

Speaker #4: In July. So I think we feel good about Q4. The other thing you're doing, you're seeing our AMP spend for the year be unchanged.

Speaker #6: Not restructuring of the business, but your portfolio is different following the divestiture of feminine care. And so if you look at the last few quarters of gross margin delivery, inclusive of what's implied for Q4, it would be suggesting a decently higher run rate than what you're landing on the full year.

Speaker #4: We've not changed or reduced that spend on a full-year basis. There is a profile shift as we looked at the execution from Q3 to Q4.

Speaker #4: So implied in the forward-looking guide is more spend in Q4 as well, which gives us confidence with the campaigns we have in place July in the books.

Speaker #6: This year. Is there any reason why gross margins shouldn't be up next year? Given that you're operating a structurally higher gross margin business, or are there anomalies that you would highlight in the namely into the back half of the year gross margin that won't repeat?

Speaker #4: And that spend, we can deliver the step-up. I don't know if you'd add anything, Fran.

Speaker #5: Yeah, I think you covered all the points, Rod. Maybe a finer point on Q3 performance for International. We do view this as transitory. The impact was probably about 350 to 400 basis points to International.

Speaker #4: Chris?

Rod Little: Chris. Yeah, no, Chris, let me just give some overall perspective, and then Fran can build on this. Look, part of the rationale in divesting FemCare is it was gross margin profit dilutive. It was a capital-intensive business, right? Strategically, we moved away from that and we put our investment into higher margin businesses that are less capital-intensive. Strategically, directionally, that's where we're going. We have that fact as we go into next year. The other thing we have as we go into next year is we start to lap what is a net investment period and begin to realize some level of return on the plant manufacturing consolidation program. What we don't control and know is, what is the inflation rate we face next year, right?

Speaker #3: Yeah. No. Chris, let me just give some overall perspective and then Fran can build on this. Look, part of the rationale in divesting fem care is it was gross margin profit dilutive.

Speaker #3: And it was a capital-intensive business. Right? So strategically, we moved away from that. And we put our investments in the higher margin businesses that are less capital-intensive.

Speaker #5: Especially on a back-ended sun season.

Speaker #4: Great. And then I guess I know we're not getting guidance today and the category growth remains volatile. But I guess as you look forward to '27, do you believe you're kind of exiting '26 with a better underlying growth profile than maybe the results reported in Q3 would suggest?

Speaker #3: Strategically, directionally, that's where we're going. And so we have that fact as we go into next year. The other thing we have as we go into next year is we start to lap what is a net investment period and begin to realize some level of return on the plant manufacturing consolidation program.

Speaker #3: Yeah. I think, Peter, we feel good in that if you go back a year ago, when we provided the guide for the year, there was an implied step up in the second half of the year.

Speaker #3: And so what we don't control and know is what is the inflation rate we face next year. Right? That's an open input as you look at oil and the whole commodities complex.

Rod Little: That's an open input as you look at oil and the whole commodities complex, where does that sit? We're not going to give a guide for next year, but what I would tell you as we go into next year, I expect gross margin to be up year-over-year percentage points versus fiscal 2026. We're not going to give a specific range on that, but yes, we should be up year-over-year with what we have line of sight to. Fran, I don't know what you would add to that or talk to for.

Speaker #3: There was more in the range of our old algorithm that we had talked about, kind of in that low single-digit growth rate. And now we sit here in the back half of the year and we have line of sight for the second half to that.

Speaker #3: Where does that sit? So we're not going to give a guide for next year. But what I would tell you as we go into next year, I expect gross margin to be up year over year percentage points versus fiscal '26.

Speaker #3: So we're not going to give a specific range on that. But yes, we should be up year over year with what we have line of sight to.

Speaker #3: So Fran, I don't know what you would add to that or talk to you for.

Speaker #5: Yeah. Thanks, Rod. So Chris, I think when we look at Q4 and we talked about it at the last quarter, we always expected and have to.

Fran Weissman: Yeah. Thanks, Rod. Chris, I think when we look at Q4, and we talked about it at the last quarter, we always expected in H2 we would have gross margin acceleration that was concentrated in Q4. When you double-click into Q4, it's two factors. One is really related to productivity initiatives and how they phased out in tariff mitigation, which we anticipated we'd be at run rate in Q4, and that's about a third of the uptick in gross margin. Two-thirds of it, though, is what we're cycling versus last year. Just a significant portion is FX and also one-time items where we had inventory adjustments and deflator changes. When you really remove the cycling aspect of it, we're pretty much at the absolute run rate that we've seen in Q3 and what we're seeing in the full-year average. Structurally, we're in a healthy place.

Speaker #3: We can't predict that perfectly. So, I think if you look at the second half in total, we think that's a good proxy as we look out to 2027 for top-line growth rate.

Speaker #5: We would have gross margin acceleration that was concentrated in Q4. And when you double-click into Q4, it's two factors. One is really related to productivity initiatives and how they phased out and tariff mitigation.

Speaker #3: We should be growing next year. We're not ready to give guidance on that. We'll do that next quarter. But we have increasing confidence that we can do that.

Speaker #5: Which we anticipated we'd be at run rate in Q4. And that's about a third of the uptick in gross margin. Two-thirds of it, though, is what we're cycling versus last year, which is significant portion is FX.

Speaker #3: And I'll tell you, part of what's different today than a couple of years ago is the absolute strength we have in some of our brands.

Speaker #5: And also one-time items where we had inventory adjustments and deflator changes. So when you really remove the cycling aspect of it, we're pretty much at the absolute run rate that we've seen in Q3 and what we're seeing in the full-year average.

Speaker #3: Cremos now 20-plus percent for the seventh consecutive quarter. In the quarter just finished, Cremos grew 70-plus percent at the top retailer. In North America it is now a top three brand in all of MENS.

Speaker #5: So structurally, we're in a healthy place. We just have to get rid of the noise in Q4 of what we're cycling versus the year before, which we're realizing disproportionately this quarter.

Fran Weissman: We just have to get rid of the noise in Q4 of what we're cycling versus the year before, which we're realizing disproportionately this quarter. I think when you press on to fiscal 2027, as Rod said, we would expect that we would be accreting gross margin really based on the factors that we've had all along. Significant productivity savings, more modest inflation, and continued focus on SRGM and mixed management with healthier brands going into fiscal 2027. We do know there's market volatility, and at the last quarter, we talked about oil and we tried to size it at that point in time. Clearly, these prices have been continually changing. We're not giving a guidance in terms of what we're expecting as far as oil is concerned.

Speaker #5: I think when you press on to fiscal '27, as Rod said, we would expect that we would be accreting gross margin. Really, based on the factors that we've had all along, significant productivity savings, more modest inflation, and management with healthier brands going into fiscal '27.

Speaker #3: A year ago, that was the number six brand in sun care. Today it's the number four brand in sun care. And it's had the largest increase in household penetration in the category.

Speaker #5: But we do know there's market volatility. And at the last quarter, we talked about oil and we tried to size it at that point in time.

Speaker #3: There's no reason we can't have at least neutral or better gains as we look to next year. So I do think there's underlying strength.

Speaker #5: Clearly, these prices have been continually changing. So we're not giving a guidance in terms of what we're expecting as far as oil is concerned.

Speaker #3: And again, we feel good about branded shave. In the quarter just finished, private label shave was down 10%. Branded shave was up nearly one.

Speaker #5: But based on where the spot rate is right now, it is materially less than what we had quantified last quarter. And definitely in a much more manageable place.

Fran Weissman: Based on where the spot rate is right now, it is materially less than what we had quantified last quarter, and definitely in a much more manageable place.

Speaker #3: Right? And so as we sort the private label piece out, I think we feel good overall in our capabilities just being better to grow as we move forward.

Speaker #6: Okay. Thank you. One follow-up would be there were headlines during the quarter about an unsolicited offer and that the board had rejected the offer as insufficient.

Chris Carey: Okay. Thank you. One follow-up would be, there were headlines during the quarter about an unsolicited offer, and that the board had rejected the offer as insufficient. To the extent that you're able to comment, can you just talk about how you view the long-term opportunity at Edgewell and the value creation relative to perhaps how others may view the value of the company? Thanks so much.

Speaker #1: Great. Thank you so much. I'll pass it on.

Speaker #3: Thank you.

Speaker #4: Thanks, Peter. I'm ready for the next question, please.

Speaker #2: Yes. Next question comes from Chris Carey with Wells Fargo Securities.

Speaker #6: Hi. Good morning, everybody.

Speaker #4: Good morning.

Speaker #6: To the extent that you're able to comment, can you just talk about how you view the long-term opportunity at Edgewell and the value creation relative to perhaps how others may view the value of the company?

Speaker #6: I wanted to ask first about gross margin. I think in fiscal Q4, your implied to deliver your best gross margin and at least five years I think clearly there was a restructure not restructuring of the business, but your portfolio is different following the divestiture of feminine care.

Speaker #6: Thanks so much.

Speaker #4: Yeah. Look, Chris, we can't comment specifically on rumors or speculation in the market. So there's nothing to say or confirm relative to that story that broke mid-quarter.

Rod Little: Yeah. Look, Chris, we can't comment specifically on rumors or speculation in the market. There's nothing to say or confirm relative to that story that broke mid-quarter. What I would tell you is, as you can see in our numbers as they're evolving and in the line of sight we have towards 2027, our focus is on building value organically. We're increasingly confident we can grow sales, build margin, and improve the structural profitability of the company. We're laser-focused on that. The board has a fiduciary duty. If there's ever something that comes inbound that can beat that organic plan, which we have financial advisors and legal advisors, we go through a very strict fiduciary process to consider anything that's inbound versus the value of the organic plan. If it beats it, then it beats it and the board would follow that through.

Speaker #6: And so, if you look at the last few quarters of gross margin delivery, inclusive of what's implied for Q4, it would suggest a decently higher run rate than what you're landing on for the full year this year.

Speaker #4: What I would tell you is as you can see in our numbers is they're evolving. And in the line of sight, we have towards '27.

Speaker #6: Is there any reason why gross margins shouldn't be up next year? Given that you're operating a structurally higher gross margin business, or are there anomalies that you would highlight in the namely into the back half of the year gross margin that won't repeat?

Speaker #4: Our focus is on building value organically. And we're increasingly confident we can grow sales, build margin, and improve the structural profitability of the company.

Speaker #4: We're laser-focused on that. The board has a fiduciary duty. If there's ever something that comes inbound that can beat that organic plan, which we have financially advisors and legal advisors, we go through a very strict fiduciary process to consider.

Speaker #3: Chris.

Speaker #4: Yeah. No. Chris, let me just give some overall perspective and then Fran can build on this. Look, part of the rationale in divesting Fem Care is it was gross margin profit dilutive.

Speaker #4: And it was a capital-intensive business, right? So, strategically, we moved away from that and put our investments in the higher-margin businesses that are less capital-intensive.

Speaker #4: Anything that's inbound versus the value of the organic plan. And if it beats it, then it beats it. And the board would follow that through.

Speaker #4: And so I can assure you we're focused on building organic value. And if there's something added to that, I and the board are open to whatever that is.

Rod Little: I can assure you we're focused on building organic value and if there's something additive to that, I and the board are open to whatever that is.

Speaker #4: Strategically, directionally, that's where we're going. And so we have that fact as we go into next year. The other thing we have as we go into next year is we start to lap what is a net investment period and begin to realize some level of return on the plant manufacturing consolidation program.

Rod Little: I can assure you we're focused on building organic value and if there's something additive to that, I and the board are open to whatever that is.

Speaker #6: Okay. All right. Thanks so much.

Chris Carey: Okay. All right. Thanks so much.

Speaker #4: Thank you.

Rod Little: Thank you. Thank you, Chris. Operator, next question, please.

Speaker #3: Thank you, Chris. Operator, next question, please.

Speaker #2: And that comes from Susan Anderson with the Canton Corp Genuity.

Operator: That comes from Susan Anderson with Canaccord Genuity.

Speaker #7: Hi. Good morning. Thanks for taking my questions. I guess maybe I just wanted to follow up on the international weakness. It sounded like maybe it was mainly private label.

Susan Anderson: Hi. Good morning. Thanks for taking my questions. I guess maybe I just wanted to follow up on the international weakness. It sounded like maybe it was mainly private label. I don't know if you could talk about just how the branded or Schick performed, particularly in Japan, in the quarter. Then also, the Billie data in the US has been a little light of late. I guess just curious, is that brand, is it just more maturing of the brand or is it increased competition and what you're expecting out of the brand as we look forward? Thanks.

Speaker #4: And so what we don't control and know is what is the inflation rate we face next year. Right? That's an open input as you look at oil and the whole commodities complex.

Speaker #7: I don't know if you could talk about just how the branded or schick perform, particularly in Japan, in the quarter. And then also the Billy data in the US has been a little light of late.

Speaker #4: Where does that sit? So we're not going to give a guide for next year. But what I would tell you as we go into next year, I expect gross margin to be up year over year percentage points versus fiscal '26.

Speaker #7: I guess just curious, is that brand is it just more maturing of the brand or is it increased competition? And what are you expecting out of the brand as we look forward?

Speaker #4: So we're not going to give a specific range on that. But yes, we should be up year over year with what we have line of sight to.

Speaker #7: Thanks.

Speaker #3: Yeah. We'll take those in order. Again, I think the Q3 results, if you look at the international step back in the quarter, that was primarily private label and shave.

Rod Little: Yeah. We'll take those in order. Again, I think the Q3 results, if you look at the international step back in the quarter, that was primarily private label and shave. It was focused primarily in a couple of European markets in Latin America. Again, branded shave in the quarter grew in international in line with what we expected. The weak spot there was uniquely limited to private label in a couple of markets. We have now solved much of that from a production capacity standpoint. Again, as we look to July, the step-up we're expecting to international being back in that mid-single-digit growth rate, we actually saw happen. We are confident that that part of this is transitory. Japan continues to be a strong market for us, exactly as we expected in the quarter.

Speaker #4: So Fran, I don't know what you would add to that or talk Q4.

Speaker #5: Yeah. Thanks, Rod. So Chris, I think when we look at Q4 and we talked about it at the last quarter, we always expected and have to.

Speaker #5: We would have gross margin acceleration. That was concentrated in Q4. And when you double-click into Q4, it's two factors. One is really related to productivity initiatives and how they phased out and tariff mitigation.

Speaker #3: And it was focused primarily in a couple of European markets and Latin America. Again, branded shave in the quarter grew. In line with what we expected.

Speaker #3: So the weak spot there was uniquely limited to private label. In a couple of markets. We have now solved much of that from a production capacity standpoint.

Speaker #3: Again, as we look to July, the step up we're expecting to internationally being back in that mid-single-digit growth rate, we actually saw happen. And so we are confident that that part of this is transitory.

Speaker #3: Japan continues to be a strong market for us. Exactly as we expected in the quarter, Japan will be in growth. As you look at Q3, Q4 combined, in that mid to high single-digit rate, we have very strong innovation that's gone into Japan on the base hydro.

Rod Little: Japan will be in growth as you look at Q3, Q4 combined, in that mid to high single-digit rate. We have very strong innovation that's gone into Japan on the base Hydro lines, both men's and women's, and we have new innovation coming in our Schick FIRST TOKYO range that will hit towards the end of the fiscal year here. I think we feel really good about not only Japan, but international branded shave with the gap in private label closing off. As it relates to Billie, I'll let Fran give a couple of details there, but we feel really good about the business. We continue to grow share in every period.

Speaker #5: I think when you press on to fiscal '27, as Rod said, we would expect that we would be accreting gross margin really based on the factors that we've had all along.

Speaker #3: Lines both men's and women's. And we have new innovation coming in our schick first Tokyo range that will hit towards the end of the fiscal year here.

Speaker #5: Significant productivity savings. More modest inflation. And continued focus on SRGM and mixed management with healthier brands going into fiscal '27. But we do know there's market volatility.

Speaker #3: And so I think we feel really good about not only Japan, but international branded shave with the gap in private label closing off. As it relates to Billy, I'll let Fran give a couple of details there.

Speaker #5: And at the last quarter, we talked about oil and we tried to size it at that point in time. Clearly, these prices have been continually changing.

Speaker #3: But we feel really good about the business. We continue to grow share in every period. The absolute growth rate is slowing versus where it was a couple of years ago.

Rod Little: The absolute growth rate is slowing versus where it was a couple of years ago, again, the brand's growing, the brand is growing market share, and I'm excited about the portfolio and the innovation to come in Billie as we start to look at next year. We haven't had a focus on innovation in that brand over the last couple of years like we have now, what will be coming over what is a multi-year string of new innovation to come on that brand with what we think is some pretty breakthrough technology in shave. Fran, I don't know if we're missing anything.

Speaker #5: So we're not giving a guidance in terms of what we're expecting as far as oil is concerned. But based on where the spot rate is right now, it is materially less than what we had quantified last quarter.

Speaker #3: But again, the brand's growing. The brand is growing market share. And I'm excited about the portfolio and the innovation to come in Billy as we start to look at next year we haven't had a focus on innovation in that brand.

Speaker #5: And definitely in a much more manageable place.

Speaker #6: Okay. Thank you. One follow-up would be there were headlines during the quarter about an unsolicited offer and that the board had rejected the offer as insufficient to the extent that you're able to comment.

Speaker #3: Over the last couple of years, like we have now and what we'll be coming over what is a multi-year string of new innovation to come on that brand with what we think is some pretty breakthrough technology.

Speaker #3: In shave. Fran, I don't know if we're missing anything.

Speaker #6: Can you just talk about how you view the long-term opportunity at Edgewell and the value creation relative to perhaps how others may view the value of the company?

Speaker #7: Yeah. Susan, specifically on your Billy point, what we have seen in shave is that Billy actually grew about low to mid-single-digit in the quarter.

Fran Weissman: Yeah. Susan, specifically on your Billie point, what we have seen in shave is that Billie actually grew about low to mid-single-digit in the quarter. We see continued share gains, I think more importantly, what we're encouraged by is the increase in household penetration, because that really does point to the structural health of the brand, and supported by now a campaign that we just launched in Q3. We really feel good about overall Billie Shave. There's some noise around Billie's grooming and portfolio in terms of what we're cycling versus last year. Shave, which is the core focus of Billie, has been performing in line with our expectations.

Speaker #7: We see continued share gains. And I think more importantly, what we're encouraged by is the increase in household penetration because that really does point to the structural health of the brand.

Speaker #6: Thanks so much.

Speaker #4: Yeah. Look, Chris, we can't comment specifically on rumors or speculation in the market, so there's nothing to say or confirm relative to that story that broke mid-quarter.

Speaker #7: And supported by now a campaign that we just launched in Q3. So we really feel good about overall Billy shave. There's some noise around Billy's grooming and portfolio in terms of what we're cycling versus last year.

Speaker #4: What I would tell you is, as you can see in our numbers, they're evolving. And in the line of sight, we have towards 2027.

Speaker #7: But shave, which is the core focus of Billy, has been performing in line with our expectations. Okay. Great. And then maybe just one follow-up on the sun care business in the strength we've seen there.

Speaker #4: Our focus is on building value organically. And we're increasingly confident we can grow sales, build margin, and improve the structural profitability of the company.

Susan Anderson: Okay, great. Maybe just one follow-up on the sun care business and the strength we have seen there. I guess, should we expect any more replenishment, or you think that is done for the season? Just curious, any comments around inventory at retail in your categories if you are seeing any destocking or anything? Thanks.

Speaker #7: I guess, should we expect any more replenishment? Or do you think that's done for the season? And then just curious, any comments around inventory at retail in your categories if you're seeing any destocking or anything?

Speaker #4: We're laser-focused on that. The board has a fiduciary duty. If there's ever something that comes inbound that can beat that organic plan—which we have financial advisors and legal advisors for—we'll consider it.

Speaker #7: Thanks.

Speaker #3: Yeah. We have we expect sun to grow in Q4 with what we've kind of what's implied here. It would suggest some replenishment into Q4.

Rod Little: Yeah. We expect sun to grow in Q4 with what is implied here. It would suggest some replenishment into Q4. One of the things we have seen is the season has had a bit of a longer tail domestically here in the US the last couple of years. We do have that implied. What I would point you to on sun care, though, is, if you look at a year-to-date range and you take the quarterly noise out of it, the category is up about 1.5% year to date through the first nine months. Our performance is very much in line with that. There are two different stories on the brands. We had planned Banana Boat to be down this year with some distribution changes, has come in as expected, ahead of what is a multi-year restage of that brand. You have seen the marketing, the positioning change.

Speaker #4: We go through a very strict fiduciary process to consider. Anything that's inbound versus the value of the organic plan. And if it beats it, then it beats it.

Speaker #3: One of the things we've seen is the season has had a bit of a longer tail, domestically here in the US. The last couple of years.

Speaker #4: And the board would follow that through. And so I can assure you we're focused on building organic value. And if there's something additive to that, I and the board are open to whatever that is.

Speaker #3: So we do have that implied. What I would point you to on sun care, though, is if you look at a year-to-date range and you take the quarterly noise out of it, the categories up about one and a half percent year-to-date through the first nine months are performance is very much in line with that.

Speaker #6: Okay. All right. Thanks so much.

Speaker #4: Thank you.

Speaker #3: Thank you, Chris. Operator, next question please.

Speaker #1: That comes from Susan Anderson with Canon Continuity.

Speaker #3: We had planned as two different stories on the brands. We had planned Banana Boat to be down this year, with some distribution changes. Has come in as expected.

Speaker #7: Hi, good morning, and thanks for taking my questions. I guess maybe I just wanted to follow up on the international weakness. It sounded like maybe it was mainly private label.

Speaker #3: Ahead of what is a multi-year restage of that brand. You've seen the marketing, the positioning change. We've just lit up a new campaign around Banana Boat.

Speaker #7: I don't know if you could talk about just how the branded or chic perform, particularly in Japan, in the quarter. And then also the Billie data in the US has been a little light of late.

Rod Little: We have just lit up a new campaign around Banana Boat, the big move as we launch into next year is a new packaging refresh, which is being super well-received, obviously by the consumers in the test markets, but also retailers are very positive on that. Hawaiian Tropic, I mentioned earlier, is now the number 4 brand in sun care, up from number 6 a year ago. It has grown 110 basis points on the year, I think from a portfolio perspective, we feel good about what we take into next year.

Speaker #3: And then the big move, as we launch into next year, is a new packaging refresh, which is being super well received obviously by the consumers in the test markets, but also retailers are very positive on that.

Speaker #7: I guess just curious, is that brand is it just more maturing of the brand or is it increased competition? And what you're expecting out of the brand as we look forward?

Speaker #7: Thanks.

Speaker #4: Yeah. We'll take those in order. Again, I think the Q3 results, if you look at the international step back in the quarter, that was primarily privately.

Speaker #3: And then Hawaiian Tropic, I mentioned earlier, is now the number four brand in sun care up from number six a year ago. Has grown 110 basis points on the year.

Speaker #4: And shave. And it was focused primarily in a couple of European markets and Latin America. Again, branded shave in the quarter grew. In international, in line with what we expected.

Speaker #3: And I think from a portfolio perspective, we feel good about what we take into next year.

Speaker #7: Okay. Great. Thank you so much.

Susan Anderson: Okay, great. Thank you so much.

Speaker #3: Thank you, Susan. Thanks, Susan. Operator, next question, please.

Speaker #4: So the weak spot there was uniquely limited to private label. In a couple of markets. We have now solved much of that from a production capacity standpoint.

Rod Little: Thank you, Susan.

Fran Weissman: Thanks, Susan.

Rod Little: Thanks, Susan. Operator, next question, please.

Speaker #5: Thank you. That comes from Olivia Tong with Raymond James.

Operator: Thank you. Next comes from Olivia Tong with Raymond James.

Speaker #7: Great. Thanks. Good morning. I know the backdrop is obviously pretty dynamic at the moment between the consumer constraints and higher costs. As well as the actions you're taking, like the manufacturing consolidation.

Olivia Tong: Great. Thanks. Good morning. I know the backdrop is obviously pretty dynamic at the moment between the consumer constraints and higher costs, as well as the actions you're taking, like the manufacturing consolidation. Understood that you narrowed the full year 2026 range. That said, it clearly implies a pretty wide range of potential results for Q4. Can you talk about what underlying expectations you have that gets you from one end to the other, given that some of the supply chain things that you mentioned, you feel like you've remedied, you have pretty good line of sight with respect to both the gross margin acceleration as well as the advertising shift? Just for fiscal 2027, I know we'll get a fuller outlook next quarter, but you did mention that you're in a stronger position than you have been for several years.

Speaker #4: Again, as we look to July, the step up we're expecting to international being back in that mid-single-digit growth rate, we actually saw happen. And so we are confident that that part of this is transitory.

Speaker #7: So understood that you narrowed the full year 26 range that said it clearly implies a pretty wide range of potential results for Q4. So can you talk about what underlying expectations you have that gets you from one end to the other, given that some of the supply chain things that you mentioned, you feel like you've remedied.

Speaker #4: Japan continues to be a strong market for us. Exactly as we expected in the quarter, Japan will be in growth. As you look at Q3, Q4 combined, in that mid to high single-digit rate, we have very strong innovation that's gone into Japan on the base hydro.

Speaker #7: You have pretty good line of sight with respect to both the cost, the gross margin acceleration, as well as the advertising shifts. And then just for fiscal 27, I know we'll get a fuller outlook next quarter, but you did mention that you're in a stronger position than you have been for several years.

Speaker #4: Lines both men's and women's. And we have new innovation coming in our chic first Tokyo range that will hit towards the end of the fiscal year here.

Speaker #4: And so I think we feel really good about not only Japan, but international branded shave with the gap in private label closing off. As it relates to Billie, I'll let Fran give a couple of details there.

Speaker #7: So as you see it today, just specifically on organic sales, your back-to-growth in North America, you did provide some clarity in terms of gross margin optimism.

Olivia Tong: As you see it today, specifically on organic sales, you're back to growth in North America. You did provide some clarity in terms of gross margin optimism, would love a little bit more color in terms of your puts and takes on the organic sales line. Thank you.

Speaker #7: So we'd love a little bit more color in terms of your puts and takes on the organic sales line. Thank you.

Speaker #4: But we feel really good about the business. We continue to grow share in every period. The absolute growth rate is slowing versus where it was a couple of years ago.

Speaker #3: Sure. Good morning, Olivia. So from an overall consumer perspective, I think similar to some others that reported before us, where we're seeing similar things.

Rod Little: Sure. Good morning, Olivia. From an overall consumer perspective, I think similar to some others that reported before us, we're seeing similar things. Remarkable resilience here. The categories, if you look at the aggregate growth rate average, a little bit of slowing, a little more competitiveness, but not a meaningful change in terms of trend change and direction. I think consumer continues to hang in there. You're absolutely right on the higher cost. Tariffs are net hurting us as we go forward here, and then we've got this potential inflation around the whole oil complex. That's what we face. Our Q4 guide, I guess what's implied, if you look at the year, I would have you focus on the midpoint.

Speaker #4: But again, the brand's growing. The brand is growing market share. And I'm excited about the portfolio and the innovation to come in Billie as we start to look at next year.

Speaker #3: Remarkable resilience here. The categories if you look at the average aggregate growth rate average, a little bit of slowing, a little more competitiveness, but not a meaningful change in terms of trend change and direction.

Speaker #4: We haven't had a focus on innovation in that brand. Over the last couple of years, like we have now and what will be coming over what is a multi-year string of new innovation to come on that brand with what we think is some pretty breakthrough technology.

Speaker #3: So I think consumer continues to hang in there. You're absolutely right on the higher cost. Tariffs are net hurting us, right, as we go forward.

Speaker #3: Here. And then we've got this potential inflation around the whole oil complex. So that's what we face. Our Q4 guide, I guess what's implied if you look at the year, I would have you focus on the midpoint, right?

Speaker #4: In shave. Fran, I don't know if we're missing anything.

Speaker #5: Yeah. Susan, specifically on your Billie point, what we have seen in shave is that Billie actually grew about low to mid-single-digit in the quarter.

Speaker #3: That's what we're focused on making sure we deliver. And are working very hard to beat that. That's what we set out at the beginning of the year.

Rod Little: That's what we're focused on making sure we deliver and are working very hard to beat that, because that's what we set out at the beginning of the year. That has not changed. The range is around a half, more than anything reflecting the dynamism in the market and just the volatility that I think warrants a bit of a wider range versus normal times, and that's up and down. I think it's appropriate for where we are. I'll come back to the sales growth thought for next year, Fran, anything to add to the guide range piece?

Speaker #3: That has not changed. The ranges around a half, more than anything, reflecting the dynamism in the market and just the volatility that I think warrants a bit of a wider range versus normal times.

Speaker #3: And that's up and down, right? So I think it's appropriate for where we are. I'll come back to the sales growth thought for next year.

Speaker #3: But Fran, anything to add to the guide range piece?

Speaker #7: I think you covered it, Rod. As we look back to half two, our midpoint of our guide is not really changed, right? There's been some phasing shifts between Q3 and Q4 for expectations for the year.

Fran Weissman: I think you covered it, Rod. As we look back to H2, our midpoint of our guide has not really changed. There's been some phasing shifts between Q3 and Q4 for expectations for the year and that's what we're focused on. We've just tightened the range to really focus on volatility that could happen. More importantly, we've been consistently delivering over the last few quarters in line with our expectations and feel really good as we go forward into Q4.

Speaker #7: That's what we're focused on. We've just tightened the range to really focus on volatility that could happen. But more importantly, we've been consistently delivering over the last few quarters, in line with our expectations and feel really good as we go forward into Q4.

Speaker #3: Yeah. And then as in looking at that sales line for next year, Olivia, I think there's a couple of things going on. Overall categories, we're seeing a little bit of a slowdown.

Rod Little: In looking at that sales line for next year, Olivia, I think there's a couple things going on. Overall categories, we're seeing a little bit of a slowdown. If you look forward and look at what are people projecting, not only domestically in the US, but across European markets, in our categories, there's a view that there may be a little bit of a slowdown coming at us. We'll plan accordingly. We're not going to plan for categories to accelerate from here, certainly. From a planning basis, I think that's how we're looking at it. Stable, potentially a little slower growth in our categories. As we've referenced on the call earlier, what we take into next year is stable, if not growing distribution in aggregate globally.

Speaker #3: If you look forward and look at what people are projecting, not only domestically in the US, but across European markets, in our categories, there's a view that there may be a little bit of a slowdown coming at us.

Speaker #3: We'll plan accordingly, right? We're not going to plan for categories to accelerate from here, certainly. So from a planning basis, I think that's how we're looking at it.

Speaker #3: Stable potentially a little slower growth in our categories. But as we've earlier, what we take into next year is stable, if not growing distribution in aggregate globally.

Speaker #3: We take in stronger brands out with growing household penetration in many of our brands. And we take into next year significantly improved capabilities in our frontline commercial sales and marketing teams, across the board, that we just have confidence in.

Rod Little: We take a stronger brand health with growing household penetration in many of our brands, and we take into next year significantly improved capabilities in our frontline commercial sales and marketing teams across the board that we just have confidence in. When you stack that up, I don't want to give a range or a number or predict anything next year, but back to this low single digits growth rate, that ought to be achievable as we build our plans and work towards giving you all a guide 3 months from now.

Speaker #3: And so when you stack that up, I don't want to give a range or a number or predict anything next year. But back to this low single digits, growth rate, that ought to be achievable, right?

Speaker #3: As we build our plans and work towards giving you all a guide three months from now.

Speaker #7: Great. Thank you.

Olivia Tong: Great. Thank you.

Speaker #3: Thank you. Thank you, Olivia. Operator, next question, please.

Rod Little: Thank you, Olivia. Operator, next question, please.

Speaker #5: There are no more questions in the queue. I would like to turn back over to Rod Little for any closing comments.

Operator: There are no more questions in the queue. I would like to turn conference back over to Rod Little for any closing comments.

Speaker #3: All right. Hey, thank you, everybody. For taking the time to be with us this morning. We're pleased with where we are this year against the commitments we made at the beginning of the year, given the environment we're operating in, to have line of sight, to deliver the commitment we made at the beginning of the year.

Rod Little: All right. Hey, thank you, everybody, for taking the time to be with us this morning. We're pleased with where we are this year against the commitments we made at the beginning of the year, given the environment we're operating in, to have line of sight to deliver the commitment we made at the beginning of the year. There's three things driving that. More consistent delivery around top line and how we're planning and the investment approach we've taken where we're investing significantly more in advertising and promotion behind our brands. Second, we're building more and more resiliency into our plans, and I think you see that as we face headwinds. Some external, some self-inflicted from time to time. We're now in a planning stance where we're able to offset that. That's what we want to continue going forward.

Speaker #3: There's three things driving that. More consistent delivery around top line and how we're planning, and the investment approach. We've taken where we're investing significantly more in advertising and promotion.

Speaker #3: Behind our brands. Second, we're building more and more resiliency into our plans. And I think you see that as we face headwinds. Some external, some self-inflicted from time to time.

Speaker #3: We're now in a planning stance where we're able to offset that. And that's what we want to continue going forward. And I think as we have more parts of the portfolio winning and stronger, it becomes incrementally easier to do that.

Rod Little: I think as we have more parts of the portfolio winning and stronger, it becomes incrementally easier to do that. Third, we are very focused on improving structural profitability in the company. We'll talk more about that next quarter, but as we look to simplify our operations, improve productivity, and lower our cost base, as we bring that together with some top-line momentum, we think we have an opportunity to not only invest, but also build margin. Anyway, we'll talk in November. Thanks for the time and our year-end call in November, we'll provide more color towards 2027. Thank you.

Speaker #3: And third, we are very focused on improving structural profitability in the company. We'll talk more about that next quarter. But as we look to simplify our operations, improve productivity, and lower our cost base as we bring that together with some top line momentum.

Speaker #3: We think we have an opportunity to not only invest, but also build margin. So anyway, we'll talk in November. Thanks for the time. And our year-end call in November, we'll provide more color towards '27.

Speaker #3: Thank you.

Speaker #7: Thank you.

Fran Weissman: Thank you.

Operator: Thank you. That concludes today's conference. Thank you for attending today's presentation, and you may now disconnect your lines.

Um not only domestically in the US but across European markets in our categories. There's a few that there may be a little bit of a Slowdown coming out.

We'll plan accordingly, right? We're not going to plan for categories to accelerate from here. Certainly. So from a planning basis, I think that's how we're looking at. It stable potentially a little slower growth in our categories.

But as we've referenced on the call earlier, what we take into next year is stable, if not growing distribution in aggregate globally, globally growing household penetration in in many of our Brands and we take into next year significantly, improved capabilities and our Frontline commercial sales and marketing teams across the board.

That, that we just have confidence in.

and so, when you stack that up,

I don't want to give a range or a number or predict anything for next year.

But, you know, back to this low single digits.

Um, growth rate.

That ought to be achievable, right, as we build our plans and work towards giving you all a guide. Um, three months from now,

Great. Thank you.

Thank you. Thank you, Olivia operator. Next question, please.

There are no more questions. Thank you. I would like to thank back over to Rob little for closing comments.

All right. Hey, thank you everybody, uh, for for taking the time to be with us this morning. Um, we're pleased, you know, with where we are this year against the commitments, we made at the beginning of the year, given the, the environment we're operating in, um, to to have line of sight to deliver the commitment. We made at the beginning of the year.

There's 3 things driving that um, more consistent delivery around Topline, and how we're planning in the investment approach. We've taken where we're investing significantly more in advertising and promotion, uh, behind Our Brands second

We're building more and more resiliency into our plans. And I think you see that as we face headwinds—some external, some self-inflicted from time to time. We're now in a planning stance where we're able to offset that, and that's what we want to continue going forward. I think, as we have more parts of the portfolio winning and getting stronger, it becomes incrementally easier to do that. And third, we are very focused on improving structural profitability in the company. We'll talk more about that next quarter, but as we look to simplify our operations, improve productivity, and lower our costs, that's the direction we're heading.

Bases. We bring that together with some topline momentum. We think we have an opportunity to not only invest, but also build margin.

Um, so we'll we'll talk in November. Thanks for the time and uh our year in call November, we'll provide more color towards 27. Thank you.

Thank you that concludes today's conference. Thank you for attending today's presentation and I'll just connect your line.

Operator: Good morning, and welcome to Edgewell's Q3 fiscal year 2026 earnings call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star and zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I'll now turn the conference over to Chris Gough, Vice President of Investor Relations. Please go ahead.

Operator: Good morning, and welcome to Edgewell's Q3 Fiscal Year 2026 Earnings Call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star and zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I'll now turn the conference over to Chris Gough, Vice President of Investor Relations. Please go ahead.

Chris Gough: Good morning, everyone, and thank you for joining us this morning for Edgewell's Q3 fiscal year 2026 earnings call. With me this morning are Rod Little, our President and Chief Executive Officer, and Fran Weissman, our Chief Financial Officer. Rod will kick off the call and then hand it over to Fran to discuss our Q3 2026 results and full year fiscal 2026 outlook. We will then transition to Q&A. This call is being recorded and will be available via replay on our website, www.edgewell.com. During this call, we may make statements about our expectations for future plans and performance.

Chris Gough: Good morning, everyone, and thank you for joining us this morning for Edgewell's Q3 Fiscal Year 2026 earnings call. With me this morning are Rod Little, our President and Chief Executive Officer, and Fran Weissman, our Chief Financial Officer. Rod will kick off the call and then hand it over to Fran to discuss our Q3 2026 results and full year fiscal 2026 outlook. We will then transition to Q&A. This call is being recorded and will be available via replay on our website, www.edgewell.com. During this call, we may make statements about our expectations for future plans and performance.

Chris Gough: This might include future sales, earnings, advertising and promotional spending, product launches, brand investment, investments in technology, advanced analytics and AI-enabled capabilities, organizational and operational structures and models, cost mitigation and productivity efficiency efforts, savings and costs related to restructuring and repositioning actions, impacts from tariffs and other recent developments, such as the conflict in the Middle East, changes to our working capital metrics, currency fluctuations, commodity costs, inflation, future plans for return of capital to shareholders, the disposition of our feminine care business, and more. Any such statements are forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, which reflect our current views with respect to future events, plans or prospects.

Chris Gough: This might include future sales, earnings, advertising and promotional spending, product launches, brand investment, investments in technology, advanced analytics and AI-enabled capabilities, organizational and operational structures and models, cost mitigation and productivity efficiency efforts, savings and costs related to restructuring and repositioning actions, impacts from tariffs and other recent developments, such as the conflict in the Middle East, changes to our working capital metrics, currency fluctuations, commodity costs, inflation, future plans for return of capital to shareholders, the disposition of our feminine care business, and more.

Chris Gough: Any such statements are forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, which reflect our current views with respect to future events, plans or prospects.

Chris Gough: These risks may cause our actual results to be materially different from those expressed or implied by our forward-looking statements. We do not assume any obligation to update or revise any of these forward-looking statements to reflect new events or circumstances, except as required by law. During this call, we will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles.

Chris Gough: Reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is shown in our press release issued earlier today, which is available at the investor relations section of our website. This non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. However, management believes these non-GAAP measures provide investors with valuable information on the underlying trends of our business and allows more meaningful period-to-period comparisons of ongoing operating results. With that, I'd like to turn the call over to Rod.

Chris Gough: However, management believes these non-GAAP measures provide investors with valuable information on the underlying trends of our business and allows more meaningful period-to-period comparisons of ongoing operating results. With that, I'd like to turn the call over to Rod.

Rod Little: Thank you, Chris, and good morning, everyone. We delivered a solid Q3 that represented an important step forward in our fiscal 2026 progression. Organic net sales returned to growth, driven by a meaningful improvement in North America, where performance exceeded our expectations. We saw strength across sun care, grooming, and branded wet shave, reflecting improved execution across the business. Adjusted EPS and adjusted EBITDA were ahead of our expectations, while adjusted gross margin performance was in line with the outlook we outlined last quarter. At the beginning of the year, we anticipated that fiscal 2026 would be a back-half story, and that the company would return to both organic sales growth and earnings growth for the full year at the midpoint of our ranges. Despite market uncertainty and increased pressure, we have stayed the course and the destination remains unchanged. We grew sales in the Q3.

Rod Little: Adjusted EPS and adjusted EBITDA were ahead of our expectations, while adjusted gross margin performance was in line with the outlook we outlined last quarter. At the beginning of the year, we anticipated that fiscal 2026 would be a back-half story, and that the company would return to both organic sales growth and earnings growth for the full year at the midpoint of our ranges. Despite market uncertainty and increased pressure, we have stayed the course and the destination remains unchanged. We grew sales in the Q3.

Rod Little: We expect stronger overall growth in Q4. With growth across international markets in North America, our outlook for the full year adjusted EPS and adjusted EBITDA is unchanged at the midpoint. Importantly, the quarter provides encouraging evidence that the investments we have made and the actions we have taken are strengthening our brands and capabilities and are beginning to translate into improved business performance. While the operating environment remains dynamic and challenging, consumption trends remained relatively stable during the quarter. North America returned to growth, and our priority brands continued to gain traction. Together, these results reinforce our confidence in the underlying trajectory of the business and our ability to deliver against our commitments. Before turning the call over to Fran, I'd like to take a step back and share why we believe Edgewell is becoming a stronger business.

Rod Little: While the operating environment remains dynamic and challenging, consumption trends remained relatively stable during the quarter. North America returned to growth, and our priority brands continued to gain traction. Together, these results reinforce our confidence in the underlying trajectory of the business and our ability to deliver against our commitments. Before turning the call over to Fran, I'd like to take a step back and share why we believe Edgewell is becoming a stronger business.

Rod Little: We believe Edgewell today is stronger, more focused, and better positioned than it was just a few years ago. Our confidence is not based on any single quarter. Rather, it is based on a series of actions and investments that have strengthened the business and, we believe, position us to deliver improved performance over time. There are four factors in particular that give us confidence in the path ahead, including our setup heading into fiscal 2027. First, we have fundamentally improved our ability to execute. Over the last several years, we have strengthened our leadership team, improved commercial capabilities, enhanced our analytics and revenue growth management tools, simplified the organization, and increased accountability throughout the business. These investments have strengthened how we plan, execute, and allocate resources across the business.

Rod Little: First, we have fundamentally improved our ability to execute. Over the last several years, we have strengthened our leadership team, improved commercial capabilities, enhanced our analytics and revenue growth management tools, simplified the organization, and increased accountability throughout the business. These investments have strengthened how we plan, execute, and allocate resources across the business.

Rod Little: Sustainable performance ultimately depends on consistent execution, and we believe the capabilities we have built are beginning to show up more clearly in our results. Second, we've become a more focused company. Following the Fem Care divestiture, our portfolio is simpler and allows us to direct a greater share of investment toward our highest-return growth opportunities. In particular, we have increased investment behind our global focused brands, concentrating advertising, innovation, and commercial resources where we believe they can create the greatest long-term value. In addition to the campaigns we outlined last quarter for Schick, Billie, and Cremo, this quarter saw another step-up in investment, including year two of our Hawaiian Tropic campaign. We believe this focus is helping create a stronger foundation for sustainable growth, profitability, and cash generation. Third, we are seeing encouraging evidence that our U.S. business is improving. The U.S. remains our largest value creation opportunity.

Rod Little: In particular, we have increased investment behind our global focused brands, concentrating advertising, innovation, and commercial resources where we believe they can create the greatest long-term value. In addition to the campaigns we outlined last quarter for Schick, Billie, and Cremo, this quarter saw another step-up in investment, including year two of our Hawaiian Tropic campaign.

Rod Little: We believe this focus is helping create a stronger foundation for sustainable growth, profitability, and cash generation. Third, we are seeing encouraging evidence that our US business is improving. The US remains our largest value creation opportunity.

Rod Little: During the quarter, North America returned to growth as commercial execution improved, distribution gains increased, and a number of our strategic initiatives gained traction. Importantly, we are seeing encouraging proof points across several of the areas where we have been concentrating investment. Hawaiian Tropic delivered strong growth during the quarter, supported by positive brand momentum, increased distribution, and continued retailer support. Cremo continued to gain traction across mass retail through expanded distribution and strong consumer demand. Schick delivered encouraging performance across key portions of the portfolio. We also continue to see positive momentum across the Billie shave portfolio, which delivered continued share growth despite a highly competitive category environment. Notably, the progress we're seeing is not limited to sales results alone. Across many of our priority brands, awareness metrics are improving.

Rod Little: Cremo continued to gain traction across mass retail through expanded distribution and strong consumer demand. Schick delivered encouraging performance across key portions of the portfolio. We also continue to see positive momentum across the Billie shave portfolio, which delivered continued share growth despite a highly competitive category environment. Notably, the progress we're seeing is not limited to sales results alone. Across many of our priority brands, awareness metrics are improving.

Rod Little: Branded search activity has increased this quarter, and our recent brand lift studies indicate strengthening consumer engagement and brand relevance. While these indicators may not immediately translate into marketplace results, we believe they provide additional evidence that the investments we are making behind our brands are resonating with consumers. The progress we are seeing is becoming increasingly broad-based. It is not being driven by a single initiative, customer, or brand. Rather, we are seeing positive indicators across distribution, brand performance, and category execution, which gives us increasing confidence that our focused investments are beginning to translate into improved marketplace results. While we still have work to do and recognize that performance will not improve in a straight line every quarter, we believe the results we delivered in North America this quarter reflect meaningful progress and are consistent with the trajectory we expected to see.

Rod Little: Rather, we are seeing positive indicators across distribution, brand performance, and category execution, which gives us increasing confidence that our focused investments are beginning to translate into improved marketplace results. While we still have work to do and recognize that performance will not improve in a straight line every quarter, we believe the results we delivered in North America this quarter reflect meaningful progress and are consistent with the trajectory we expected to see.

Rod Little: Fourth, we are accelerating the transformation of our operating model. As we look ahead, we see meaningful opportunities to further simplify the organization, improve speed and agility, enhance decision-making, and create a structurally lower cost base. These actions are intended to help offset stranded costs associated with the Fem Care divestiture while positioning Edgewell to become what we believe will be a faster, more efficient, and more responsive organization. An important part of this effort is increased investment in technology, advanced analytics, and AI-enabled capabilities. We see significant opportunities to leverage these tools to improve consumer insights, accelerate innovation, enhance commercial execution, and drive productivity across the enterprise. We believe these initiatives, together with our broader transformation and productivity efforts, will help create a simpler, more agile organization that is better positioned to deliver more consistent growth, profitability, and cash flow over time, even in a dynamic external environment.

Rod Little: We see significant opportunities to leverage these tools to improve consumer insights, accelerate innovation, enhance commercial execution, and drive productivity across the enterprise. We believe these initiatives, together with our broader transformation and productivity efforts, will help create a simpler, more agile organization that is better positioned to deliver more consistent growth, profitability, and cash flow over time, even in a dynamic external environment.

Rod Little: We look forward to providing additional details on these initiatives and our broader fiscal 2027 priorities during our year-end earnings call in November. One important example of this transformation is our wet shave manufacturing consolidation, which is the largest operational initiative we have undertaken since becoming a standalone company in 2015. The project's objectives are straightforward: simplify our manufacturing network, modernize our capabilities, improve service levels, and create a structurally lower cost position. As we discussed previously, the project has created some temporary disruption as we transition production across the network. While those impacts extended longer than originally anticipated and affected supply greater than expected in certain international markets during Q3, we continue to make meaningful progress against the implementation plan.

Rod Little: simplify our manufacturing network, modernize our capabilities, improve service levels, and create a structurally lower cost position. As we discussed previously, the project has created some temporary disruption as we transition production across the network. While those impacts extended longer than originally anticipated and affected supply greater than expected in certain international markets during Q3, we continue to make meaningful progress against the implementation plan.

Rod Little: While it remains too early to provide specific guidance for fiscal 2027, the combination of four factors, one, better execution, two, a more focused portfolio, three, improving US performance, and four, a major operational transformation approaching its inflection point, is why we believe we will enter fiscal 2027 from a stronger position than we have been in several years. The Q3 provided further evidence that this strategy is working. We returned to organic net sales growth, North America returned to growth, and we delivered earnings ahead of expectations, reinforcing our confidence in the path ahead. With that, I'll turn it over to Fran to walk through our Q3 results and outlook in greater detail.

Rod Little: The Q3 provided further evidence that this strategy is working. We returned to organic net sales growth, North America returned to growth, and we delivered earnings ahead of expectations, reinforcing our confidence in the path ahead. With that, I'll turn it over to Fran to walk through our Q3 results and outlook in greater detail.

Fran Weissman: Thank you, Rod. As Rod outlined, the Q3 marked an important step forward in our fiscal 2026 progression, with organic sales returning to growth, adjusted EBITDA and adjusted EPS ahead of our expectations. I'll now walk through the quarter in more detail, beginning with top-line performance, then the P&L, and our outlook for the balance of fiscal 2026. Now let's turn to our performance in the quarter on a continuing operations basis. Organic net sales increased 1.1% in the quarter. As strong performance across grooming, sun and skin, along with growth in branded wet shave, more than offset continued weakness in private label wet shave, driven by the supply disruptions previously discussed. North America organic sales increased 3%, driven by double-digit grooming growth, mid-single-digit growth in sun and skin, and a return to growth in branded wet shave.

Fran Weissman: Organic net sales increased 1.1% in the quarter. As strong performance across grooming, sun and skin, along with growth in branded wet shave, more than offset continued weakness in private label wet shave, driven by the supply disruptions previously discussed. North America organic sales increased 3%, driven by double-digit grooming growth, mid-single-digit growth in sun and skin, and a return to growth in branded wet shave.

Fran Weissman: International organic sales declined 1.4%, reflecting the impact of the Middle East conflict, lower private label sales due to the temporary supply disruption discussed earlier, and a weaker than anticipated start to the sun season in Europe and LATAM. Importantly, we continue to deliver growth in several of our key international markets, and we expect overall international to return to growth in the Q4 as supply chain challenges improve. On a year-to-date basis, we have grown or held dollar market share in nearly 70% of our markets. Specifically in the US, branded unit market share has held steady or increased in 39 of the past 43 weeks. Wet shave organic net sales declined 1.9% as continued supply disruption within private label more than offset growth across the branded portfolio.

Fran Weissman: n a year-to-date basis, we have grown or held dollar market share in nearly 70% of our markets. Specifically in the US, branded unit market share has held steady or increased in 39 of the past 43 weeks. Wet shave organic net sales declined 1.9% as continued supply disruption within private label more than offset growth across the branded portfolio.

Fran Weissman: Encouragingly, branded wet shave returned to growth during the quarter, reflecting improving performance across our focused brands and that our commercial initiatives in the US are beginning to gain traction. In US razors and blades, category consumption increased 160 basis points in a heightened competitive and promotional environment. Our overall share remained pressured by private label availability constraints, but branded share declined 40 basis points as we cycled elevated promotional activity from a year ago and changes in our approach to couponing, primarily in the drug channel. Sun and skincare organic net sales increased 5%, driven by mid-single-digit growth in sun in North America, strong global grooming performance, and continued growth in skincare. Hawaiian Tropic, Cremo, and Wet Ones all delivered encouraging results in the quarter, supported by increased distribution, innovation, and brand investment. Cremo completed its seventh consecutive quarter of approximately 20% or more growth in grooming.

Fran Weissman: Our overall share remained pressured by private label availability constraints, but branded share declined 40 basis points as we cycled elevated promotional activity from a year ago and changes in our approach to couponing, primarily in the drug channel. Sun and skincare organic net sales increased 5%, driven by mid-single-digit growth in sun in North America, strong global grooming performance, and continued growth in skincare.

Fran Weissman: Hawaiian Tropic, Cremo, and Wet Ones all delivered encouraging results in the quarter, supported by increased distribution, innovation, and brand investment. Cremo completed its seventh consecutive quarter of approximately 20% or more growth in grooming.

Fran Weissman: In the US, sun care category consumption declined approximately 2% in the quarter. Our value share declined 60 basis points as expected market share declines in Banana Boat more than offset 110 basis points share growth in Hawaiian Tropic. As sun care consumption can shift meaningfully between quarters, depending on weather patterns and the timing of seasonal demand, we believe a broader year-to-date market share view provides a more accurate read on the season than any single quarter. Looking at the category year to date, consumption through mid-July increased by 1.4%, and overall market share was flat, generally in line with our expectations. Now turning to the P&L. Adjusted gross margin declined 30 basis points compared to prior year and broadly in line with our expectations. While margin ultimately came in as planned, the underlying drivers were somewhat different than what we anticipated entering the quarter.

Fran Weissman: Looking at the category year to date, consumption through mid-July increased by 1.4%, and overall market share was flat, generally in line with our expectations. Now turning to the P&L. Adjusted gross margin declined 30 basis points compared to prior year and broadly in line with our expectations. While margin ultimately came in as planned, the underlying drivers were somewhat different than what we anticipated entering the quarter.

Fran Weissman: However, those pressures were largely offset by modest tariff refunds and higher productivity realized during the quarter. As compared to prior year, productivity savings of approximately 200 basis points and 40 basis points of favorable currency movements were more than offset by unfavorable mix and promotional levels, as well as inflation and net tariff impacts. A&P expenses were 14.6% of net sales, up from 13.6% last year, as spending increased to support the new campaign launches as expected. While this was slightly below the levels we outlined for the quarter, the difference was largely timing related, as our outlook for the full year is unchanged.

Fran Weissman: A&P expenses were 14.6% of net sales, up from 13.6% last year, as spending increased to support the new campaign launches as expected. While this was slightly below the levels we outlined for the quarter, the difference was largely timing related, as our outlook for the full year is unchanged.

Fran Weissman: Adjusted SG&A was 18.4% of net sales, compared to 17.6% last year, primarily driven by higher incentive compensation and unfavorable currency impacts in the current year, partly offset by lower people and consulting expenses. Adjusted operating income was $53 million or 9.3% of net sales, compared to $63.6 million or 11.3% of net sales last year, primarily reflecting the impact of lower gross margins, higher A&P and SG&A expenses. GAAP diluted net earnings per share from continuing operations were $0.26, compared to $0.46 in the Q3 of fiscal 2025. Adjusted earnings per share from continuing operations were $0.72 and flat to prior year quarter. Currency favorably impacted adjusted EPS by $0.04 in the quarter. Adjusted EBITDA was $78.9 million, inclusive of a $2.1 million favorable currency impact compared to $81.2 million in the prior year.

Fran Weissman: GAAP diluted net earnings per share from continuing operations were $0.26, compared to $0.46 in the Q3 of fiscal 2025. Adjusted earnings per share from continuing operations were $0.72 and flat to prior year quarter. Currency favorably impacted adjusted EPS by $0.04 in the quarter. Adjusted EBITDA was $78.9 million, inclusive of a $2.1 million favorable currency impact compared to $81.2 million in the prior year.

Fran Weissman: Net cash provided by operating activities was approximately $47 million for the first nine months of fiscal 2026, compared to approximately $44 million last year, primarily due to changes in working capital. For the Q3 of fiscal 2026, cash provided from operating activities was approximately $119 million. As a reminder, cash flow is presented on a consolidated basis for both continuing and discontinued operations. We continued our quarterly dividend payout, declaring a $0.15 per share dividend for the Q3, and returned approximately $7 million to shareholders via dividend. Now turning to our outlook for fiscal 2026. Consistent with Rod's comments, our underlying expectations for the year and the H2 are intact. As we enter the final Q4 of the fiscal year, we are updating our outlook to reflect year-to-date performance and narrowing our guidance ranges.

Fran Weissman: We continued our quarterly dividend payout, declaring a $0.15 per share dividend for the Q3, and returned approximately $7 million to shareholders via dividend. Now turning to our outlook for fiscal 2026. Consistent with Rod's comments, our underlying expectations for the year and the H2 are intact. As we enter the final Q4 of the fiscal year, we are updating our outlook to reflect year-to-date performance and narrowing our guidance ranges.

Fran Weissman: Following our return to organic sales growth in Q3, we expect growth to strengthen in Q4, supported by a return to normalized growth trends internationally and continued growth in North America. We also continue to expect material gross margin expansion in Q4, driven primarily by significant productivity savings, the cycling of one-time costs from a year ago, and favorable foreign exchange. While we have modestly reduced our full-year gross margin rate outlook to reflect a somewhat more challenging cost environment and the impact of lower international sales in Q3, we continue to expect gross margin expansion for the full year. Importantly, we remain committed to our planned level of investment behind the business, as our expectations for A&P are largely unchanged. We expect favorable SG&A and financing items to provide some offset.

Fran Weissman: Following our return to organic sales growth in Q3, we expect growth to strengthen in the Q4, supported by a return to normalized growth trends in international and continued growth in North America. We also continue to expect material gross margin expansion in the Q4, driven primarily by significant productivity savings, the cycling of one-time costs from a year ago, and favorable foreign exchange.

Fran Weissman: While we have modestly reduced our full-year gross margin rate outlook to reflect a somewhat more challenging cost environment and the impact of lower international sales in the Q3, we continue to expect gross margin expansion for the full year. Importantly, we remain committed to our planned level of investment behind the business as our expectations for A&P are largely unchanged. We expect favorable SG&A and financing items to provide some offset.

Fran Weissman: Overall, our outlook remains consistent with the framework we outlined at the beginning of the year. While the operating environment remains dynamic, we continue to expect stronger Q4 performance, gross margin expansion, and adjusted EBITDA, adjusted EPS, and free cash flow that remain largely in line with prior expectations. Just as importantly, we are maintaining our planned investment levels behind our brands and strategic priorities, while continuing to improve productivity and offset external pressures. With that context, I'll walk through the core metrics of our fiscal 2026 outlook. Organic net sales are expected to be in the range of flat to plus 50 basis points. Adjusted EPS is expected to be in the range of $1.80 to $2.00 per share. Adjusted EBITDA is expected to be in the range of $250 million to $260 million.

Fran Weissman: Just as importantly, we are maintaining our planned investment levels behind our brands and strategic priorities while continuing to improve productivity and offset external pressures. With that context, I'll walk through the core metrics of our fiscal 2026 outlook. Organic net sales are expected to be in the range of flat to plus 50 basis points. Adjusted EPS is expected to be in the range of $1.80 to $2 per share. Adjusted EBITDA is expected to be in the range of $250 to $260 million.

Fran Weissman: Adjusted free cash flow, excluding the impacts of BevCare divestiture, is expected to be approximately $80 to $110 million. We expect adjusted net debt leverage to end the year in the range of 3.3 to 3.4 times, which includes an estimated 0.3 to 0.4 negative term impact from temporary BevCare divestiture timing and related items. Taken together, we believe the actions we've implemented position the business well to finish fiscal 2026 on a strong note and enter fiscal 2027 from a position of strength. For the specific guidance ranges, I would refer you to the press release issued earlier today. With that, I'll turn the call over to the operator for Q&A.

Fran Weissman: Taken together, we believe the actions we've implemented position the business well to finish fiscal 2026 on a strong note and enter fiscal 2027 from a position of strength. For the specific guidance ranges, I would refer you to the press release issued earlier today. With that, I'll turn the call over to the operator for Q&A.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. Any time your question has been addressed and you would like to withdraw it, please press star then two. At this time, we will pause momentarily to assemble the roster. The first question comes from Peter Grom with UBS.

Peter Grom: Great. Thank you. Good morning, everybody. Hope you're doing well. I wanted to start just on the top line and maybe just thinking about the Q4 a little bit. Can you maybe just help us understand the confidence behind the implied acceleration in the Q4, especially kind of given the weaker wet shave in international builds in Q3?

Rod Little: Yeah. Good morning, Peter. Thank you for the question there. That's the focus for us, has been the focus. We've said from the beginning of the year when we provided the guide, that this was going to be a H2 inflection to growth. You see the result for Q3, and as we look to Q4, implied is an acceleration in Q4 off of Q3. I think we feel confident in that. All segments of the portfolio from a branded perspective are growing in Q3. We see that continuing in Q4. Q3, as you would've seen, was impacted by what is more of a transitory impact around supply chain, primarily around private label products, into both Europe and Latin America. As we cycle that and look to Q4, that improves.

Rod Little: All segments of the portfolio from a branded perspective are growing in Q3. We see that continuing in Q4. Q3, as you would've seen, was impacted by what is more of a transitory impact around supply chain, primarily around private label products, into both Europe and Latin America. As we cycle that and look to Q4, that improves.

Rod Little: July is a data point that we have line of sight to, and we've seen what we expected there in July. I think we feel good about Q4. The other thing you're seeing, you're seeing our A&P spend for the year be unchanged. We've not changed or reduced that spend on a full-year basis. There is a profile shift as we looked at the execution from Q3 to Q4; implied in the forward-looking guide is more spend in Q4 as well, which gives us confidence with the campaigns we have in place—July in the books, and that spend—that we can deliver the step-up. I don't know if you'd add anything, Fran.

Rod Little: There is a profile shift as we looked at the execution from Q3 to Q4, implied in the forward-looking guide is more spend in Q4 as well, which gives us confidence with the campaigns we have in place, July in the books, and that spend, that we can deliver the step up. I don't know if you'd add anything, Fran.

Fran Weissman: Yeah, I think you covered all the points, Rod. Maybe a finer point on Q3 performance for international. We do view this as transitory. The impact was probably about 350 to 400 basis points to international, so their run rate would have been right around 3%, which is where we expected them to be. Looking ahead to Q4, we're expecting mid-single digit growth, which is in line with our overall expectations, especially on a back-ended sun season.

Rod Little: I think, Peter, we feel good in that if you go back a year ago when we provided the guide for the year, there was an implied step-up in the H2 of the year. It was more in the range of our old algorithm that we had talked about kind of in that low single-digit growth rate. Now we sit here in the H2 of the year, and we have line of sight for the H2 to that. I think as we look at how we move forward, the brand momentum, the brand strength we have, how we're coming through the supply chain manufacturing change, that headwind here that you saw in Q3 is largely going to be behind us. We can't predict that perfectly.

Rod Little: I think as we look at how we move forward, the brand momentum, the brand strength we have, how we're coming through the supply chain manufacturing change, that headwind here that you saw in Q3 is largely going to be behind us. We can't predict that perfectly.

Rod Little: I think if you look at the second half in total, we think that's a good proxy as we look out to 2027 for top line growth rate. We should be growing next year. We're not ready to give guidance on that. We'll do that next quarter. We have increasing confidence that we can do that. I'll tell you, part of what's different today than a couple of years ago is the absolute strength we have in some of our brands. Cremo's now 20%-plus for the seventh consecutive quarter. In the quarter just finished, Cremo grew 70%-plus at the top retailer. In North America, it is now a top 3 brand in all of men's. That brand has tripled and headed towards a quadruple in a very short period of time. That provides real tailwinds to us.

Rod Little: Cremo's now 20%-plus for the seventh consecutive quarter. In the quarter just finished, Cremo grew 70%-plus at the top retailer. In North America, it is now a top 3 brand in all of men's. That brand has tripled and headed towards a quadruple in a very short period of time. That provides real tailwinds to us.

Rod Little: The other brand strength piece I would call out is Hawaiian Tropic. A year ago, that was the number 6 brand in sun care. Today, it's the number 4 brand in sun care, and it's had the largest increase in household penetration in the category. It shows you the teams that are building these brands are doing an excellent job. Then as we go out to retailers, we talked about distribution outcomes. We had net gains in distribution this year. There's no reason we can't have at least neutral or better gains as we look to next year. I do think there's underlying strength. Again, we feel good about branded shave. In the quarter just finished, private label shave was down 10%. Branded shave was up nearly 1, right?

Rod Little: Then as we go out to retailers, we talked about distribution outcomes. We had net gains in distribution this year. There's no reason we can't have at least neutral or better gains as we look to next year. I do think there's underlying strength. Again, we feel good about branded shave. In the quarter just finished, private label shave was down 10%. Branded shave was up nearly 1, right?

Rod Little: As we sort the private label piece out, I think we feel good overall in our capabilities just being better to grow as we move forward.

Peter Grom: Great. Thank you so much. I'll pass it on.

Rod Little: Thank you. Thanks, Peter.

Rod Little: Thank you.

Chris Gough: Thanks, Peter. Operator, next question, please.

Chris Gough: Operator, next question, please.

Operator: Yes. The next question comes from Chris Carey with Wells Fargo Securities.

Chris Carey: Hi, good morning, everybody.

Rod Little: Morning.

Fran Weissman: Morning.

Chris Carey: I wanted to ask first about gross margin. I think in fiscal Q4, you're implied to deliver your best gross margin in at least five years. I think, clearly there was a restructuring of the business, but your portfolio is different following the divestiture of Fem Care. If you look at the last few quarters of gross margin delivery, inclusive of what's implied for Q4, it would be suggesting a decently higher run rate than what you're landing on the full year this year. Is there any reason why gross margins shouldn't be up next year, given that you're operating a structurally higher gross margin business, or are there anomalies that you would highlight namely into the H2 of the year gross margin that won't repeat?

Chris Carey: If you look at the last few quarters of gross margin delivery, inclusive of what's implied for Q4, it would be suggesting a decently higher run rate than what you're landing on the full year this year. Is there any reason why gross margins shouldn't be up next year, given that you're operating a structurally higher gross margin business, or are there anomalies that you would highlight namely into the H2 of the year gross margin that won't repeat?

Rod Little: Chris. Yeah. No, Chris, let me just give some overall perspective, and then Fran can build on this. Look, part of the rationale in divesting Fem Care is it was gross margin profit dilutive, and it was a capital-intensive business. Right? Strategically, we moved away from that, and we put our investment in the higher margin businesses that are less capital-intensive. Strategically, directionally, that's where we're going. We have that fact as we go into next year. The other thing we have as we go into next year is we start to lap what is a net investment period and begin to realize some level of return on the plant manufacturing consolidation program. What we don't control and know is what is the inflation rate we face next year, right?

Rod Little: Strategically, directionally, that's where we're going. We have that fact as we go into next year. The other thing we have as we go into next year is we start to lap what is a net investment period and begin to realize some level of return on the plant manufacturing consolidation program. What we don't control and know is what is the inflation rate we face next year, right?

Fran Weissman: Yeah. Thanks, Rod. Chris, I think when we look at Q4—and we talked about it at the last quarter—we always expected in H2 we would have gross margin acceleration that was concentrated in Q4. When you double-click into Q4, it's two factors. One is really related to productivity initiatives and how they phased out in tariff mitigation, which we anticipated we'd be at run rate in Q4, and that's about a third of the uptick in gross margin. Two-thirds of it, though, is what we're cycling versus last year. A significant portion is FX, and also one-time items where we had inventory adjustments and deflator changes. When you really remove the cycling aspect of it, we're pretty much at the absolute run rate that we've seen in Q3 and what we're seeing in the full-year average. Structurally, we're in a healthy place.

Fran Weissman: Two-thirds of it, though, is what we're cycling versus last year. Just a significant portion is FX, and also one-time items where we had inventory adjustments and deflator changes. When you really remove the cycling aspect of it, we're pretty much at the absolute run rate that we've seen in Q3 and what we're seeing in the full-year average. Structurally, we're in a healthy place.

Fran Weissman: We just have to get rid of the noise in Q4 of what we're cycling versus the year before, which we're realizing disproportionately this quarter. I think when you press on to fiscal 2027, as Rod said, we would expect that we would be accreting gross margin really based on the factors that we've had all along, significant productivity savings, more modest inflation, and continued focus on SRGM and mix management with healthier brands going into fiscal 2027. We do know there's market volatility, and at the last quarter, we talked about oil, and we tried to size it at that point in time. Clearly, these prices have been continually changing. We're not giving a guidance in terms of what we're expecting as far as oil is concerned.

Fran Weissman: We do know there's market volatility, and at the last quarter, we talked about oil, and we tried to size it at that point in time. Clearly, these prices have been continually changing. We're not giving a guidance in terms of what we're expecting as far as oil is concerned.

Fran Weissman: Based on where the spot rate is right now, it is materially less than what we had quantified last quarter and definitely in a much more manageable place.

Chris Carey: Okay. Thank you. The one follow-up would be, there were headlines during the quarter about an unsolicited offer and that the board had rejected the offer as insufficient. To the extent that you're able to comment, can you just talk about how you view the long-term opportunity at Edgewell and the value creation relative to perhaps how others may view the value of the company? Thanks so much.

Rod Little: Yeah. Look, Chris, we can't comment specifically on rumors or speculation in the market. There's nothing to say or confirm relative to that story that broke mid-quarter. What I would tell you is, as you can see in our numbers as they're evolving, and in the line of sight we have towards 2027, our focus is on building value organically. We're increasingly confident we can grow sales, build margin, and improve the structural profitability of the company. We're laser-focused on that. The board has a fiduciary duty. If there's ever something that comes inbound that can beat that organic plan—which we have financial advisors and legal advisors—we go through a very strict fiduciary process to consider anything that's inbound versus the value of the organic plan. If it beats it, then it beats it, and the board would follow that through.

Rod Little: We're increasingly confident we can grow sales, build margin, and improve the structural profitability of the company. We're laser-focused on that. The board has a fiduciary duty. If there's ever something that comes inbound that can beat that organic plan, which we have financial advisors and legal advisors, we go through a very strict fiduciary process to consider anything that's inbound versus the value of the organic plan. If it beats it, then it beats it, and the board would follow that through.

Rod Little: I can assure you, we're focused on building organic value. If there's something additive to that, I and the board are open to whatever that is.

Chris Carey: Okay. All right. Thanks so much.

Rod Little: Thank you. Thank you, Chris. Operator, next question, please.

Rod Little: Thank you.

Chris Gough: Thank you, Chris. Operator, next question, please.

Operator: That comes from Susan Anderson with Canaccord Genuity.

Susan Anderson: Hi. Good morning. Thanks for taking my questions. I guess maybe I just wanted to follow up on the international weakness. It sounded like maybe it was mainly private label. I don't know if you could talk about just how the branded or Schick performed, particularly in Japan in the quarter. The Billie data in the US has been a little light of late. I guess, just curious, is it just more maturing of the brand, or is it increased competition and what you're expecting out of the brand as we look forward? Thanks.

Rod Little: Yeah. We'll take those in order. Again, I think the Q3 results, if you look at the international step back, in the quarter, that was primarily private label and shave. It was focused primarily in a couple of European markets in Latin America. Again, branded shave in the quarter grew in international in line with what we expected. The weak spot there was uniquely limited to private label in a couple of markets. We have now solved much of that from a production capacity standpoint. Again, as we look to July, the step up we're expecting to international being back in that mid-single digit growth rate, we actually saw happen. We are confident that that part of this is transitory. Japan continues to be a strong market for us, exactly as we expected in the quarter.

Rod Little: The weak spot there was uniquely limited to private label in a couple of markets. We have now solved much of that from a production capacity standpoint. Again, as we look to July, the step up we're expecting to international being back in that mid-single digit growth rate, we actually saw happen. We are confident that that part of this is transitory. Japan continues to be a strong market for us, exactly as we expected in the quarter.

Rod Little: Japan will be in growth as you look at Q3, Q4 combined, in that mid to high single digit rate. We have very strong innovation that's gone into Japan on the base Hydro lines, both men's and women's, and we have new innovation coming in our Schick FIRST TOKYO range that will hit towards the end of the fiscal year here. I think we feel really good about not only Japan, but international branded shave with the gap in private label closing off. As it relates to Billie, I'll let Fran give a couple of details there, but we feel really good about the business. We continue to grow share in every period. The absolute growth rate is slowing versus where it was a couple of years ago.

Rod Little: I think we feel really good about not only Japan, but international branded shave with the gap in private label closing off. As it relates to Billie, I'll let Fran give a couple of details there, but we feel really good about the business. We continue to grow share in every period. The absolute growth rate is slowing versus where it was a couple of years ago.

Rod Little: The brand is growing market share, and I'm excited about the portfolio and the innovation to come in Billie as we start to look at next year. We haven't had a focus on innovation in that brand, over the last couple of years like we have now and what will be coming over what is a multi-year string of new innovation to come on that brand with what we think is some pretty breakthrough technology, in shave. Fran, I don't know if we're missing anything.

Fran Weissman: Yeah. Susan, specifically on your Billie point, what we have seen in shave is that Billie actually grew about low to mid-single digit in the quarter.

Q3 2026 Edgewell Personal Care Co Earnings Call

Request DemoDemo

Edgewell Personal Care Co

Earnings