By Robb M. Stewart

Edgewell Personal Care's shares were down sharply ahead of the bell after the owner of Schick, Playtex, Hawaiian Tropic and other consumer brands scaled back earnings and sales targets for the fiscal year to factor in a restructuring hit and the anticipated fallout from import tariffs.

In premarket trading, the shares were 10% lower after ending the previous session at $30.02. The stock was already down 11% so far in 2025, and 20% weaker over the last 12 months.

Edgewell said it now anticipates organic sales will be flat to 1% higher for the year, where it previously was aiming for 1% to 3% growth. It said currency movements are now expected to negatively affect sales by 0.1 percentage point were it had been looking at a 1.6 point hit.

Earnings are now forecast to come in at between $2.09 and $2.29 a share, where guidance had been for a range of $2.54 to $2.74. On an adjusted basis, it said it expects per-share earnings of $2.85 to $3.05 where it had been expected the lower end of a $3.15 to $3.35 range.

Edgewell said it is taking steps to strengthen its operating model, simplify its organization and improve manufacturing and supply chain efficiency through restructuring and repositioning actions, including changes in Mexico. That is expected to result in a pretax charges of about $33 million for the fiscal year, higher than the $29 million it had been expecting.

The company said its outlook reflects all known tariffs, including duties placed by the U.S. on other countries and levies announced by other countries on the U.S., but doesn't include tariffs that have been announced and delayed or other additional tariffs which could lead to additional costs.

Edgewell said it was operating in a challenging and volatile environment that is likely to affect consumer sentiment and behavior, prompting it to moderate its top-line expectations. It added it recognized that work remained to better position its portfolio in the competitive U.S. market and it planned to incrementally invest, focusing on its wet shave and sun care portfolios in the U.S.

Sales in the second quarter of Edgewell's fiscal year fell to $580.7 million from $599.4 million a year earlier, missing the $589.9 mean estimate of analysts compiled by FactSet.

Net earnings declined to $29 million, or 60 cents a share, for the three months to March 31, from $36 million, or 72 cents, last year. Adjusted per-share earnings came in at 87 cents, below the 90 cents analysts expected.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

May 07, 2025 09:21 ET (13:21 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.