Market Share and Consumption Momentum
Improved consumption and market share trends: U.S. value share rose ~50 basis points in the quarter; branded share increased ~40 basis points (led by Billie +40 bps). Management reports growing or holding market share in ~80% of markets (up from ~70% in Q1) and 26 weeks of consecutive U.S. volume share growth.
Grooming and Brand Strength
Grooming organic net sales grew ~6%, driven by CREMO which grew ~38%. Hawaiian Tropic delivered strong volume with U.S. Sun Care category consumption up ~17% and company value share in Sun Care up ~180 basis points. Wet Ones organic sales grew ~1% with value share ~65%.
International Resilience
International organic net sales increased ~1%; international Wet Shave grew ~3.6%, driven by volume and distribution/activation gains. Management expects international to deliver mid-single-digit growth in H2 supported by innovation and continued share momentum.
Productivity and Supply-Chain Progress
Delivered ~220 basis points of gross productivity savings in the quarter; progress on Wet Shave manufacturing consolidation (Phase 1 nearly complete). Program expected to begin delivering savings in FY27 and reach ~2 points company-wide gross margin improvement at full run rate in FY28.
Portfolio Simplification and Capital Allocation
Fem Care divestiture completed in February, simplifying portfolio and improving margin profile. Proceeds were directed to pay down revolver debt this quarter; management returned $23 million to shareholders in the quarter ($16M share repurchases, ~$7M dividends).
Reaffirmed Guidance and Back-half Recovery Expectation
Company reaffirmed fiscal '26 guidance: organic net sales range unchanged (-1% to +2% excluding FX); Q3 net sales expected +2% to +3%. Adjusted EPS guidance $1.70–$2.10; adjusted EBITDA guidance $245M–$265M; adjusted free cash flow $80M–$110M. Q3 adjusted gross margin expected 44%–45%, with margin expansion expected in H2 as productivity, pricing and tariff mitigation take hold.
Planned Marketing Investment
Stepped-up A&P investment planned to support five U.S.-focused brands (Schick, Billie, Hawaiian Tropic, Banana Boat, CREMO). Q3 expected to be the highest A&P quarter (15%–16% of net sales) to support new campaigns and relaunches.