Edgewell Q2 Net Sales Rise 0.6% to $519.5M, GAAP EPS Falls to $0.09
Edgewell reported Q2 fiscal 2026 net sales of $519.5 million, up 0.6% year-over-year, with organic net sales down 2.4% and GAAP EPS falling to $0.09 from $0.43. Adjusted EPS reached $0.60, and the company ended the quarter with $299.7 million in cash, declaring a $0.15 dividend.
1. Second Quarter Financial Results
Edgewell reported Q2 net sales of $519.5 million, a 0.6% increase year-over-year, while organic net sales declined 2.4%. GAAP EPS was $0.09 versus $0.43 a year ago, and adjusted EPS reached $0.60 versus $0.69, with management reaffirming its full-year outlook for organic net sales, adjusted EPS, adjusted EBITDA and free cash flow.
2. Margins and Operating Performance
Gross profit declined to $216.9 million, driving a 410-basis-point drop in gross margin to 41.8%, and adjusted gross margin fell to 43.4%. Productivity savings of 220 basis points were outweighed by 420 basis points of core inflation and tariffs, along with 70 basis points of unfavorable mix and higher SG&A and $23 million of restructuring charges.
3. Liquidity and Capital Allocation
The company ended the quarter with $299.7 million in cash and access to a $418.8 million revolving credit facility. Edgewell returned $22.9 million to shareholders through $15.8 million of share repurchases and $7.1 million of dividends, and declared a $0.15 per share cash dividend for the quarter.