Company Adjusts Fiscal 2026 Outlook, Expects Adjusted EPS of $1.70 to $2.10
The Company is providing the following outlook assumptions for fiscal 2026. The previous outlook provided on November 13, 2025 was on a consolidated basis, including the Feminine Care business. The change from the prior outlook reflects the removal of the Feminine Care business. The revised full year outlook for continuing operations remains consistent with the prior outlook. Reported net sales are now expected to increase in the range of approximately 0.5% to 3.5%; Includes an estimated 150-basis point positive impact from foreign currency changes. Organic net sales are expected to be in the range of a 1.0% decrease to a 2% increase. GAAP EPS is expected to be in the range of $0.55 to $0.95, previously $1.10 to $1.50 on a consolidated basis, Includes: Restructuring and related costs, Sun Care reformulation, Other costs. Adjusted EPS is expected to be in the range of $1.70 to $2.10, previously $2.15 to $2.55 on a consolidated basis, Reflects a $0.44 per share reduction from classifying the Feminine Care business as discontinued operations. On an annualized basis, this impact would be approximately $0.20 per share, compared to the Company's prior annualized outlook in the range of a $0.40 to $0.50 per share impact. Adjusted gross margin is expected to increase approximately 60-basis points. Adjusted operating margin is expected to decrease approximately 50-basis points, reflecting 70-basis points from higher A&P investment in the current year and 30-basis points from increased SG&A expense reflecting lower incentive compensation in the prior year. Adjusted EBITDA is expected to be in the range of $245 to $265M, previously $290 to $310M on a consolidated basis, Reflects a $44M reduction from classifying the Feminine Care business as discontinued operations. On an annualized basis, this impact would be approximately $36M compared to the Company's prior annualized outlook in the range of a $35M to $45M impact. Other Income/Expense, net is expected to be approximately $20M, previously flat on a consolidated basis, inclusive of interest income of $5M, previously $2M on a consolidated basis, and Transition Services Income in the range of $15 to $19M. Interest expense associated with debt is now expected to be approximately $70M, previously $73M on a consolidated basis, as the proceeds from the Feminine Care transaction are expected to be used to pay down the balance of the Company's U.S. revolving credit facility. Adjusted effective tax rate is expected to be approximately 22% to 23%, previously 21% to 22% on a consolidated basis. Capital expenditures expected to be in the range of approximately 3.0% to 3.5% of net sales. Adjusted free cash flow is expected to be approximately $80 to $110M, previously $115 to $145M on a consolidated basis. As previously discussed, in fiscal 2026, the Company is taking specific actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency through restructuring and repositioning actions, including the further consolidation of Wet Shave operations. As a result of these actions, the Company expects to incur pre-tax charges of approximately $65M for the full fiscal year.
