Shares of Edgewell Personal Care (EPC) plummeted 5.17% in Tuesday's trading session following the release of disappointing fiscal 2025 financial results. The personal care products company reported a significant 74% decrease in net earnings and a 1.3% decline in net sales, raising concerns among investors about the company's performance and future outlook.

According to the earnings report, Edgewell's net earnings for fiscal 2025 fell to $25.4 million, down from $98.6 million in the previous year. Adjusted net earnings also declined by 21.3% to $120.4 million. The company's diluted earnings per share dropped to $0.53 from $1.97, while adjusted diluted earnings per share decreased to $2.52 from $3.05 last year. These figures significantly underperformed market expectations, leading to the sharp sell-off in the stock.

Adding to investor concerns, Edgewell reported a decrease in organic net sales, with North American markets experiencing a 4.4% decline, primarily due to lower volumes in key product categories such as Wet Shave, Feminine Care, and Sun Care. While international markets showed a 3.5% organic growth, it was not enough to offset the overall sales decline. The company attributed the decrease in adjusted net earnings to lower gross margins and higher brand investment, despite some cost savings in SG&A expenses. In light of these results, Morgan Stanley analyst Dara Mohsenian maintained a Hold rating on the stock with a price target of $21.00, further contributing to the cautious sentiment surrounding Edgewell Personal Care.