Edgewell Personal Care (EPC) 7 Nov 242024 Q4 Earnings call transcript

Good day, and welcome to Edgewell's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call.[Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Chris Gough, Vice President, Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us this morning for Edgewell's Fourth Quarter and Fiscal Year 2024 Earnings Call. With me this morning are Rod Little, our President and Chief Executive Officer; and Dan Sullivan, our Chief Operating and Financial Officer. to the our hand year XXXX outlook we off Dan over fiscal kick before discuss to results transition will call it then to XXXX Rod Q&A. and full and This call our www.edgewell.com. be for replay website, will is via available recorded being

revise by by to based our or be except on under reports Factors as XXXX, SEC. implied the ended and statements may our various integrations, promotional related XX, future launches, and Risk risks update circumstances, statements. our to forward-looking future These our may the assume law. spending, in harbor XXXX, expectations statements respect which Form include our future to current caption such and the the Any make reflect those our This value, from working results prospects. in actual Litigation under obligation new return capital to to may do commodity uncertainties, our to fluctuations, for September including costs repositioning statements on of to with and which reflect future and and product changes report performance. might for purposes those we These actions, the Form restructuring plans described on Securities We of as of XX-K provisions these sales, cause or risks call, year on shareholders are and for During for Act quarterly XX-Q, with is forward-looking amended currency annual assumptions expressed about or plans earnings, acquisitions of subject file category to and are capital are advertising be or required forward-looking views savings events metrics, the more. plans any safe events, different the Private statements not any materially costs, statements Reform

measures today, measures the are shown press These not certain accounting will GAAP reconciliation financial is at available section with This for a comparable to provided supplement issued During the generally as to, release accepted or directly non-GAAP Investor performance of is A prepared as not measures a refer our principles. to is we financial information accordance as prepared most to substitute earlier GAAP. Relations our non-GAAP financial this in non-GAAP in non-GAAP measures. measures of accordance call, in the superior website. with of which

to trends non-GAAP measures information to Rod. our However, over with provide turn the underlying the business. on these management I'd that, believes of valuable call like investors With

for Thank morning, you, our and earnings Good call. year-end quarter everyone, fiscal thanks Chris. fourth joining and us on XXXX

the ago. effectiveness further the Our in years demonstrate of model our in we transforming business progress launched fiscal results X business the are making 'XX and strategy and we

strong and healthy of fourth deepened gross organic our slight our businesses, delever expectations. at consecutive achieved the sales growth category-leading buy adjusted collectively year supported and growth drove heightened shares. organic and productivity both globally the we expanded the our less women's Sun was back organic below recent our we our and of participation XXXX, growth for 'XX, delivered margin sales earnings efforts cautious delivered grooming fiscal we segments. our accelerated and an introduced Care inflation For consumer, to and years both growth, currency We innovation growth line year. which growth, our from our gross pillars generation although and flow net than flow-through In slightly normalized, And constant consecutive delivered earnings across across men's meaningful the in bottom business a and substantial net U.S, saw as face and margins international cash we category, double-digit and In model pricing adjusted of initiatives, increasingly landscape competitive results. second meaningfully key share per the accretion

by Importantly, top business. of distinct X in the line areas underpinned compelling performance results were our

international of over our revenue. XX% markets, First, which grew X% up make now total our and about

of in our portfolios the portfolio both what brand mid-single sales for grew journey Walmart. win we women's leading while durable brand lifestyle gaining these becoming growth grew representing America which to with entered and right of moving its digits. the X% nearly points path believe a women's categories believe will we Grooming continued win grooming Care digits year, with in select North preeminent for Sun the forward. over growing third, basis XX% And as our it XXX women's total businesses beginning be represents to clear Together, shave, towards Second, Billie mid-single share company

U.S. remains the work of our portfolios, growing our while and Fem well majority Shave in business across select is market. Care areas performing and healthy, of So

XX% top the below and as year model adjusted share outperformed per accretion margin of profile the operating While expectations, gross line for delivered was clear the growth earnings was our growth. our we strength

which we've on our relentless will of on cost going been we be part revenue of price efforts, and agile transformation, to continue management, manage this business the productivity at increasingly how and will of management all cash disciplined and As forward. in core

While the transformation is year business ongoing. the demonstrate results our we gaining and traction, that of increasing our this posted strategy is journey

execution, model, announced organizational our improve better operating drive position to will a quarter, changes More streamline critical bottom top specifically, strategy new us a and which changes we priorities of to the these deliver overarching leadership series line and result, designed as team to to we are year. of all we and enter enterprise X growth. primary our decision-making our believe sustainable strengthen on fiscal As last

right foremost, First win the in and fem is States better play to term. our compete our that categories United to the on strengthening shave over longer focus and and

our background, the and to America, priority with I'm leader big U.S. U.S. and trends will increased in categories the Spence, to builder a improved with elevated confident Jessica balanced North welcome our leadership. thrilled for have and strengthen of and focus We've We she seasoned team. record a North A Jess and focus strong and driving partner of renewed retail and announced that I'm will our in track American a an as winning here around in and begins key new innovator, building shave a position the these lead leader growth. brand to with revenue this business fem an operational competitiveness. impressive care, part She's profit accomplished winning and us recently of brand industry. within

accelerate and must consumer-centric continue fortify innovation we Second, to platform. our

our As Boat we XXX on a over are Care innovation agile seeing Sun platform. locally just engine products, innovation accelerate our the our and our robust. in launching XXXX reshaped with created more intended to spray the when Banana we After year U.S. ago market, and consumer category-leading we speed remains driven near-term pipeline impact increase a focus our in

of for in outlook coming Sword launch Europe, broader includes Cremo the the for expansion brand States. Wilkinson further Billie Our for Schick product meaningful in the of Hawaiian expansion in United with brands the master and introductions Banana the year top body and Japan, shave brand brands the First contribution line from the and Tropic innovation and Boat

set and is creation forward. markets. place and very leaders and improved our our our to as we priority significantly businesses. We to capability international strengthen across teams talented third leadership deliver value across in to of leverage We've move growth have consistent Our continue now international a growth

the a are investment executing developed. with have we voice Our local that the over long working. they a we for runway ample on X%, cumulative now model ended a including operating broader And growth believe in business internationally, we rate which have strategies of teams in growth is 'XX. tells XXXX for of us X-year and leadership And that another fiscal have year our innovation, organic average new growth mid-single-digit

and chain. doubling accelerating related of efforts year-on-year down on recovery. our to as the investment commercial profit a and drive gross supply catalyst Our margin priority to We're and clear and fourth increased is to accretion meaningful work operations strength marketing

confident can pre-COVID that of per to the to margin continue committed drive to we XXX basis year are returning savings, we business points percent. gross to productivity XX-plus XXX remain and in levels We

becoming under is And of already on strength will that have levels I leadership demonstrated these chain we in area world-class am a partner this that overseeing lastly, our equally path customers. we aspects we we the to now ultimately his committed We objectives. service focused our and to are and preferred are our of supply improving Dan continue effort, all a as and meet with this people. confident on organization

our capabilities have and significantly talent, company We improved profile.

year was record not out with proud best and Our also low in years it as recognized the with having and employer a fiscal positivity only rate much for work scores, company employee engagement stronger XXX engagement midsized we start are our of brand of the across than company America scores out We're the the second nearly in is new We XX% ranked turnover. ago. externally recognition, play organization it seeing been to in category. in record levels but this of X

Importantly, Japan Europe, in arrival serves Jess's the of and and an such last talent North have terms across as America. in external to China important recently recruiting roles organization recognition top in most enabler seen with leadership as we month

commitments, and as never confident to and the coming future consistent reliable years. can we been I So than am growth we more value deliver think have over I creation deliver on that the now and our our about ability

excited And about so ahead. we're the year

now through a and XXXX, and low and fiscal for win our our right we growth, value expansion businesses results and our increased line in the And year portfolio focus take to shareholders. Dan? fourth like further anticipate with excellent and U.S., to single-digit 'XX. to gross top across outlook margin leadership our strengthened on team look organic Dan discuss creation execution As ask momentum we organization, and quarter good across you fiscal increased ultimately the profit fiscal to international for I'd

Thanks, and good everyone. morning, Rod,

full international below the In per top we've meaningful of top line approach right portfolio disciplined a in basis growth year. expectations, to accretion, As to strong fundamentals, U.S. results include year mid-single-digit of inherent and was good Xx. Billie 'XX of growth incremental points this deployment and business share our management gross top win combination continue our line of operating year-over-year gains, seen good and momentum enabled Adjusted our clear, and incrementally out year-over-year cost Brand, highlighted by while disciplined cost the business of with our the brands, yield across per of our a highlights strategies model gross margin Rod we our fiscal by continued by fund margin capital was modest Key us about earnings in and operational the where to outsized driven mentioned, strength share international performance XXX in underpinned growth as broader investment capital earnings million for drove $XXX margin allocation, growth. markets, the growth over points. across productivity allocation flow year, basis meaningful play to generation, XXX to XXX delever and free investing cash points basis our business, in and support expansion brands adequately just strategies savings which capital line

environment remains Inflation, cautious. consumer which As by slowed dampened and the of season. we currency environment year, more exited operating is And commodities. in in driven our remains the though moderating consumption largely unfavorable is year, months the be to weather, sales, final improved commercial in-stock and continues operational we're last across through certain grooming, Operationally, labor The external expected year, modest categories to seen earnings and increases conditions the impacted and in quarter by the our supply on The continue sun from shelf. made U.S., in mixed. the worse which we've execution volatile and fiscal relentless be the to headwind Entering across XXXX. recovery be and organization. which to a already efforts across will new on challenges we've preps organic further quarter businesses, negatively fourth skin accelerated the our we is

Organic results America and quarter. distributor with growth Care in saw Care Ones. volume growth, detailed by declines X%, more gains. Oceania the Organic markets Wet me high strong America, across than solid and in markets reflecting men's Care Sun was health, were both X.X% North China as disposables. Sun limited sales North and channel in overall sales International returned Fem the X% promotional. international volume and Shave in category growth performance. to declines decreased single-digit and net women's Shave let The and across systems business. about the to Wet continued In to and than particularly expected, North Shave, better growth it quarter organic preps by Greater was the channel. widespread driven performance was experienced in growth offset dynamics, growth gains, X.X% about contributing and to promotional category of net highly Now turn America international for Wet Wet double-digit by sales primarily shave outcomes the Wet offset distribution brand impacted in-market organic down to International be and X.X% net though continued women's drug Shave our as grew in strong activation. remains and sales sluggish declined X% continued price growth, by and negatively competitive and with category declined

preps challenges, the largely by across impacted network to in Edge supply were negatively results third-party and Our across quarter our brand. related transitory manufacturing the

drug and with in As mentioned, consumption supply our steps category, supplier, and razors steady to down blades declines channel. in seen was in the heightened we've in the quarter headwinds do appropriate with In anticipate further improvement levels X% taken continued address issues the have not U.S. stock these the XXXX.

offset compete increased fire international across expectations. our the sales we've quarter, launch down expectations. by by from Target decreased X% was The commensurate on stock well XX to in Black growth ramp-up Sun mostly a after and of U.S., Consumption in overall as the and the food. markets. at in than in our perform in and In XX%, share was the X% The in brand about efforts drug previous the end-of-season share continued the in about X% X% weather was the of XXX growth were in labor were partially In of And expect and to Fem this and replenishment categories well heavily, disappointed. liners, sales Bulldog about below the offset seasonal pads, lowest. well consumption retail. category and brand In the and improved approximately added more we down more X%, retailers Jack share will we declined Skin at XXX overall. the declines an Grooming. facility as share Billie lagged at such, Sun basis Sun a production. points SKUs. share in Care where and net has declines in Care attained we growth as declined Skin Grooming namely expectations. net orders organic normalized X%, our net consumption Wet decreased points at production declined category performance for tampons Billie's Care the quarter, return organic by continues sales of achieved category was organic remains Final market our organic sales up XX% penetration net Overall, trade the Our and where allow retail X% is current levels muted, quarter Walmart, previous X.X% below Body our Ones about and were share all basis our driven throughput meaningfully X% rollout though about Cremo and was sales that as of with promotional. over as growth Care XX% organic XX% quarter and flat, respectively. course growth to

moving compared and gross Adjusted sales, points points inflation or were lower We higher basis other were constant consulting the fourth points basis as basis realized sale year to the up per the and basis in 'XX, $X.XX flat Adjusted in higher share X.X% an quarter the last increase $XXX $X.X people last compared impact income increased of cash prior approximate efficiency currency. net were in Adjusted lower approximately portion mix $X.XX expenses share margin of of inclusive adjusted and expense to in year earnings million per net an and of $XX.X ratio full million prior points a $XXX $X.XX in favorable XX movements to $X.XX expenses of increased rate the facility absorption the gross a X.X% credit XXX Now basis year, of our impact Currency of had operating strong quarter. and basis debt net incentive as last compared $XX prior hand, of impact in Adjusted operational per million volume and by increase to translational income point remeasurement offset was the of on compared below operating offset of X% XX undrawn down due core more was year. points offset We $XXX within were currency year. SG&A $XX.X savings favorable million, points than quarter year. expense of gains XX by versus XX compared and and X.Xx. quarter $XX.X compensation activities and higher spend. margin P&L. operating diluted million the Adjusted currency operating productivity profit XXX million XX EBITDA to the $X.XX decreased million balance of the A&P promotions, was year-over-year access sales. to partially operating Net share ended million basis by fiscal earnings which sheet of was to provided year. cash net other leverage rate savings, headwinds and in headwinds. brand GAAP hedge for with to were from profit.

quarter. quarter, during payout shareholders per fiscal continued our $XX as share returned our share $X.XX to allocation the totaled quarter. the we fourth million dividend part year, we on million, deleveraging our cash the repurchases prioritize we for as another declared In of During $XX.X strategy. total, quarterly million disciplined and revolver and down capital In paid dividend the we of $XX.X

turn results. sales year to full the for net Organic X.X%. me year let Now our increased briefly

Care, by grew fueled the nearly almost X% year. for our X%, win Our portfolio Global about growth Sun brands X% right Grooming to while grew in

was increased and From declined Care. X% and a gains America Fem net of heightened revenue of brands. driven XXX This sale, well by basis basis just XX to about XXX We markets about approximately A&P cost Wet mix was basis core Adjusted increase gross and as of X% as by points XX% portfolio absorption sales basis our XXX slight continue international sale. as the decline increased growth margin XXX pricing Shave invest to of partially trapped by organic margin a in X%, adjusted year-on-year. about of points points. rate headwinds unfavorable up by inflation X% gross year sales offset a organic million in approximately was right-to-play net favorable profit or Adjusted investment basis in costs. declines. rate in people operating XX unit geographic offset points. over adjusted and The was higher in accretion, points over inventory of approximately than income points as unfavorable offset more basis brand price gains. in as operating of increased to margin cost North inflation equally rate volume expense price savings were XX.X%, volume perspective, operating transitory management an XXX XX.X% in related $XX.X and points generated prior offset both Our as the for productivity strategic and year by decreased we increase basis attributable and margin

XXXX. Now turning for to outlook our fiscal

and currency financial underpinned to we are gross above will year another algorithm margin look generation. again of or our deliver cash by free flow we both results expectations fiscal forward and constant our at stated As at accretion that 'XX, meaningful

points tailwinds. fiscal year, XX to of basis to growth range excluding X%, anticipate the be we the net X% organic in currency of For sales

from portfolio Growth expected by We just this vary is quarters. the each largely single-digit be deliver with to continue down. growth to will mid-single-digit We low expect while portfolio growth to flat anticipate right-to-play geography QX expected under right-to-win down volume gains, segment. our to of will is to slightly growth, and expected although our drive essentially in X final be X%,

positive. North mid-single-digit America expect to organic growth flat We sales to slightly markets with international deliver

rate margin, of to gross year-over-year As currency. XX anticipate or we accretion adjusted at constant look points basis about XX we basis points

XXXX the of basis quarter transactional However, the XXX gross approximately trailing be currency of points flat and basis to the first we impact a anticipate in On due prior excluding constant headwinds. expect to to the absorption margin negative currency estimated first XXX currency an to gross points quarter charges margin basis, when in year. from decline we compared

of is of full of gains, offset in XXX operating price productivity million quarter. we margin and FX, basis points COGS in expense Other of though negative growth $X impact to expected the basis we basis For first year, points, committed by expect be the midpoint points a is and hedge million, of $XXX to for of year. increase of of $X.XX of represents dollars constant at currency XX and brands the our currency inclusive $XXX points estimated unfavorable margin headwind On million to impact approximately range profit or $X.XX QX. EPS approximately the growth approximately repurchases savings $XX estimated expected XX basis be EPS at to 'XX. the for over tax in the inclusive primary with currency sale the about loss in is our the from headwinds. XXX the of of million points assumed outlook approximately and per points of as increase costs currency. mix of in operating points to in EBITDA A&P X% we to of XX inflation, expected be XX expected basis in of to XX%. Adjusted anticipate the $X.XX, fiscal of constant to XX share basis to million X%. unfavorable absorption, of is currency contraction basis, This XX through expected approximately compared expect rate of to $XX an growth other unfavorable headwinds, inclusive XX.X%. range support is EBITDA and with rate reflects in both is points anticipated million A&P to of in latter gains which of remeasurement $X to of remain year-over-year increase basis rate We range points currency approximately and Adjusted the effective investing million is an with to basis of expected the increasing EPS hedge range midpoint The net basis $X.XX approximately a XX adjusted approximately be currency. $X Adjusted the impact outlook share earnings expected XX% This the driver

of In with prior EPS in X/X that anticipate year terms year. phasing, And EPS X be generate adjusted full half we for of adjusted is finally, our will about cash the we year flow expected of the million. the QX free fiscal approximately year below $XXX to

press more that our the I you fiscal And 'XX for back refer morning. Q&A would to over outlook, the the now turn to session. the operator issued earlier call I'd to this to For information we like related release

first have [Operator is we Instructions] Carey The question from of Fargo Chris Securities. Wells

your I remained confidence area think go giving Can you an volatility, expectations. more are fiscal you mid-single-digit 'XX? confidence maybe talk I in of which Maybe that year, your that about that if this bit to some to on in for Care. doesn't sales lower, relative been on you the just stabilize? it about with expectations, North will, add to and your course, has just but profit growth in of Fem international the key it maybe profitability. drivers your a quite levels this organic confidence through of strong. growth of that think Shape levels comment America return own to including Can came come just If Preps sales I know, around can business in, And line

added get tension and balance and line I'm line top So the to just between thoughts. bottom your trying

your confidence question, sales profit the you in that I'll short. start see actually would what we part here is I that but fall reiterate it, with don't event said. second of the which maybe And

productivity for it XXXX, relentless our pretty meaning saw that are we you efforts. this think I year on us,

on are cost among maniacal G&A. We our focus

And the so in to certainly event we that and drive the I levers a And are think I think your to where challenged. growth business question. I the not we've how fair start demonstrated have our continue but pull that's go I it's think and the to with going If that that international. built sales there's expectation because I'm Again, to part capability. will about pulled plan, first back profit we thinking comes,

is growth think business that out It's probably XX% calling mid-single-digit hand components year. growth. where profile I we our One to before have X international, of on a the there's next I it Rod. here worth are

I think our behavior that's very between over that here is ongoing, brand team from well extremely abilities has we and built brand sight just of performing the and And activation consistent this are And already years. is to price market. the a coming been in to line that work demonstrated innovation healthy have our to There candidly, executed. some shelf.

So of high confidence, high line sight there.

Sun. U.S. flat It This of in basically things as see is a sluggish, was end. Within season was the tailwinds. the a consumption start difficult U.S. and a flat. had essentially that business, I overall, to But difficult One couple we would point a here

expect would and brand to up expect we're gain then, against an tailwinds and going innovation so And we work, season. We of with share. course, in odd consumption

point, body its going On business. the are be which of Billie expand we third would side see equation, the my grooming to

the are categories We excited on addition in just doing brand about back to for NPD. grooming the a last up And super what national is we're me, Cremo around which level. then expansion to its Billie, the with more and in laddering piece innovation

left product next will We around which And for close pockets we growth, bullish shave. few There distribution, launch which super dispo a we're year. Amazon will the are a about in brand.

that thing come and brand. would supply And around 'XX. wouldn't think got the obviously So on there's us international. will X.X things what point for probably you've disruption we experienced the got would say we sun in be a really a line of We've in that Cremo estimate I exciting the season, sight healthier Billie good 'XX last about of then we is back brand

So there hand Rod for his it comments. and let to me pause

add things. couple a I just to said Dan with of would what

guide. put growth fiscal very First, we in the confident forward profile 'XX with the

we all XX% that's and of in referenced business, Billie, the out of grooming mid-single-digit here called Sun Dan international, our growth U.S. got business, script, that and in XX% As rate. about we've plus the our at

here So leaves Shave That year, do essentially next business. flat X% rock was and portfolio. as, with to year. last down solid that. right-to-play business U.S. in that primarily our that what the do And we've Combined, got Fem with we okay, need

lead with feel can I so you would through a as but effectively retailers. Retailers growth. that. if win. step-up last And to that very out a that. X-point to business I've we could it's the of deliver we new us, projecting with Jess very leader I've confident greatness close give flat, got in behind we're are to us coming months. not us business, which been We've the the want couple do over been

full support. and place and And we businesses teams we've So activating those have portfolios. in Jess got now stronger in below those retailer building brands

life. next on if we've of And midpoint. profit nothing ever kind in in line. think really right it I every think get as don't we I is there, the the the We what it cover said, guided to growth, year the future. certain at got place and in we've X% off for learn at Dan we'll But So feel day that that we good

we question is The Securities. of Bill have Truist Chappell from next

and the Just both to Care and quarter Sun on follow of health the want up from the category.

it a just season to in I'm shipments. done. it was small the largely is historically, For below that of includes July hear even though well quarter it's the because terms August, and quarter, usually surprised been plan

in share, XXXX, due tailwind time last, in understand We We this And help get had should category more year, trade can innovation. then weather. got the fairly more and probably maybe had good And favorable that part think is this expectations market you else a favorable it you We down And me second, even same than comps there. had weak comps. be last the and a so season should some anything sell. the So commentary. to you consumers that it wasn't. probably I

stand we health of category the this 'XX. understand move me help So you where and as into

way one the of consumers Let Sun has the the up in of done an actually they benefits outside that of quarter It's pre-pandemic, The environment is couple Remember, their this unimportant in time and clear a in me post-COVID X/X is of last a quarter. that hadn't U.S. extending category things. not stuck.

the the We think just to It clear should of it in that category year-over-year. up down was consumption upfront, I X%. in September so X% us happens ends that profiled period be X/X be we for quarter. And

retail. And so you was estimate QX it in-season us. was our happen ultimately a because our meaningful X from We organics impact expectation X drag in that shortfall organic came miss and the on to X, consumption what didn't from points about replenishment on see replenishment of

So that's that piece.

coming do is years, how over think about growth healthy choppiness obviously, actually of of X It the terms to the 'XX, But with COVID categories straight out 'XX. you X% saw In and prior category. 'XX, time, you pandemic. a

saw already versus Xth the because quarter starts but get orders. not year's and hitting last on us that retailers you narrative, good had we view to going through to tripped we go up not of not, quarters have year's on the weather Now already in and I'm back fourth July a did season period the pulled and on impact last back bullish

portfolio to were growth meaningful expectations brought brands We the the how profile the our innovation do different quarter the Having of it. quarter? year this that, fourth XXX We X% are here U.S. has this of to in category the We said year naturally category the to in very than So a leading a think we view spray. ago. X%

and for consumption looking very, to what solid which all of year season X% for with since more which of we're weather, X% the about in how what seen but out drove we it. thought not very for we've that. so year. greatness year looking And Sun a And comfortable saw next declining have we XXXX, rather flat, is not or than a this know we flat year range

So you Rod, quarter that's our it. on particularly But plays We're we on that add saw. bullish quite obviously, in the that a weather that? part, would to view fourth Sun. anything

we innovation a I'd just have reinforce, strong pipeline.

QA ourselves formulation, everything store I do best-in-class. in-house to the which force, from the are think, delivery manufacturing direct end regulatory We We leader. is,

longevity, capabilities on that, SPF seen to and down. the strong aging. the of It's mid-tier and we've we be not people aging learned the not in causes wellness one they're #X And in focus the to is sun change. skin help Sun and cause ways more generally, the We've pricing up, going that bullish Bill, down. our have up, Care do as exposure to to regimen of And and And so rates the Globally, is Dan we cancer the on reason the skin are here. U.S. going in active. back people category we're health then got want They want category have referenced. and brands,

is private long that in so down And private trade significant opposite trade down this sets had don't to actually, the not think category, category. referenced people We're We exposure. we label In well And trading up. the term label. question. you see your up for seeing There's happening.

are spend it fact, category In the willing more as people in to evolves.

daily is little that respect. And think category a traditional a so use I this than in different

Olivia James. The have Tong of we next from Raymond question is

sales wanted and what X% your lot remarks and the Head Obviously, visibility on you've in ask America. fiscal for building over-indexing I about Because such mentioned about EPS going? outlook challenges being Wet and a organic. 'XX acceleration in and to promotion prepared sluggish your an your to North the you And the got of gets sales Shave, chain a you blocks down. to new high QX EBITDA had, supply drug, X%

progresses. the it flexibility in of year obviously, sales like as fair to built So a the expectation seems grow some you've QX, bit in for but

that talk So would or new maybe be pipeline the even cadence, helpful. if you product could about

And you're right on.

sequential a to QX as guided. We as we have improvement go are going with we've

from end From out I in to confident different laid in building it team. ability more growth we're growth innovation global earlier profile. our I an think we're at innovation drive from ago, go to the local a with deliver to come insights, back I'll The getting our year Wells, on and And insights. us out go our blocks of better innovation some to partners, deliver market better innovation, accepted year we the customer this as better give you with half angle. have just We through to Chris' local retail the our ability but a standpoint, X those had with planned that confident tailwinds. there, buy-in eliminated we moved model innovation we market It's as we year One and won't question much talked via the into platform. we our point better I'll back next is from results. faster. examples

The we're in successful. Shave seeing invested in that done very our behind Wilkinson behind momentum It's team. oriented, first Wilkinson campaign, Europe it, the Shave very in Europe. brand is launched that the been summer. We and in We've the campaign Sword locally well very campaign by

a We Japan one second call in in out the and new aimed users first-time engaging The is I'll launched at Tokyo brand First the capturing Shick brand. category.

the since Japan. done the younger be case driven an We category. category getting safety. brand in leader just huge it launch As engagement best We've more that channels all interested media consumers in brand should we're razor, date separation. the in in you by driving growth. It's is and like in Japan. responsiveness leader know, Japan we in consumers It's and in around the we've this around operating amazing that social with September. And launched younger to seen

year the goodness of year. lot coming we come have the things that And out as the into get innovation a have of model. we across like more we to so And local

innovation. that's So

got in can other the category to or that out step-up be confidence is an we've one in we Care. out a is step portfolio in And to to Sport takes our flat good pads pipelines we've the the retailer to We're to decline rates. fiscal minus Carefree do growth will piece Fem to be we'll we that. good consumers. of to Care. is category Again, plans everything our what innovation time We're future. 'XX, in to Fem nothing relative sales The but has we in in getting thing participation 'XX, our is And more have 'XX, most category. continue our robust that line fiscal volume. to in in do relative do XX% gives with up won't into where The to move to you Playtex category. business, with already going we It 'XX is that. spot that organic net to comp if for guide. and other The pad essentially our We're spot in response of X% that had have Fem Carefree a X%. a much we'll confident see for will do Care, build in from the grow 'XX, easy with liners take our the lapping fiscal sight line going category in us good beyond see

remain And and we step to so our in Dan. category the think up I 'XX. in confident ability

just thing one. asked only the you on a Olivia, good would the It's I add, question QX.

of were That's quarter out course. a in timing We're course, element, played the up cycling. about Let of you now. to you'd the business that last you me and in We are QX. fourth orders 'XX take headlines of year that Japan XXXX wouldn't There's have you first inventory there. And give X you you're to the just actually Japan In model, That worth benefit things will. gotten. decision because XX% level got quarter, a a try we any if cycling reset wholesaler made quarter, of of out there recall in point.

in of in of the growth drivers beyond. of the much body, Billie us, that namely QX Some comes for and the pricing international expansion brand in

Rod's got So you Fem here. QX. benefit And do don't in get to then we've work on to Care, that point

We won't until the expecting sequential are absolutely X fiscal. see but half improvement, growth year-over-year of

we're that So hopefully, QX. helps about thinking with you how

Canaccord have of from Genuity. The we Anderson Susan question next is

margin. the gross Question on

that's that? you does for include there range? And before XX Can next year. And next any Is then I structural year, the to the work that COGS XXX So break changed inflation potential mid-XXs you bps think called now to and tariff anything a did get of pandemic of of another you though, between lot that bps. out year, good drivers hikes? this out

versus you're we're gains, about year, the categories but the going next I productivity part and in would is post-COVID we're think of the nature levers to is we and margin X which back in. just less we XXXX, productivity to price. to markets pressures your difficult accelerated which linking FX. The That's it in to continue inflationary realization around predict is pre-COVID the that from and say, seeing profile, control control, as price. the What

We picture looks like 'XX. an inflationary a are thinking about 'XX for that lot

the mid-single-digit inflation are X% we're Some there and of on labor on we single-digit and maybe XXX distribution. the point How raws, likely basis in range. of different, deflationary is low X% to pieces inflation inflation get range. in headwind warehouse on We're but the COGS

capabilities our demonstrated we've here. again, So

committed at about we has in clearly least. that margin path. what where pre-COVID getting the we're thinking now on to 'XX, think to levels the I margin 'XX, and now inflected we're how based done gross And certainly, confident on business we've back of

At like closing I this stage, there over Rod any are for the no Little further would turn comments. to questions. And conference to back

Thank company. We the interest in the Feb. continued holidays, to the All you, everyone. and you in update for give investment then. best an and See appreciate you the you we'll

us. joining for you Thank conference. today's concludes That

disconnect You lines. now your may