08.02.16
Edgewell said its sun and skin care net sales decreased $2.0 million, or 1.3% in its fiscal third quarter, ended June 30. Excluding the impact of currency movements, organic net sales decreased $700,000, or 0.5%. Excluding an estimated $2 million negative impact from international go-to-market changes, underlying net sales would have grown 40 basis points, driven primarily by growth in North America across both the Banana Boat and Hawaiian Tropic brands. Sun and skin care segment profit increased $8.5 million, or 33.0%. Excluding the impact of currency movements, organic segment profit improved $9.1 million or 35.3%. The profit increase was driven by favorable product costs and lower A&P spending, as planned.
"The conclusion of the third quarter marked our one year anniversary as a standalone company, and it's the point where we began to put many of the transitional impacts associated with the household products spin-off behind us," said David Hatfield, Edgewell's president, CEO and chairman. "Our top and bottom line results through the first three quarters were generally in line with our expectations coming into the year, and we drove those results while managing through a tremendous amount of change." Mr. Hatfield continued, "We're excited as we move into year two, and the next phase of growth and organizational enhancements, including a new Zero Based Spending program launched in June."
Overall, net sales decreased 4.1% in the quarter and 5.9% year to date. Organic net sales decreased 2.2% in the quarter and 0.9% year to date. Excluding the estimated impact of international go-to-market changes, underlying net sales would have decreased by 0.7% in the quarter and increased by 0.9% year to date, according to Edgewell.
"The conclusion of the third quarter marked our one year anniversary as a standalone company, and it's the point where we began to put many of the transitional impacts associated with the household products spin-off behind us," said David Hatfield, Edgewell's president, CEO and chairman. "Our top and bottom line results through the first three quarters were generally in line with our expectations coming into the year, and we drove those results while managing through a tremendous amount of change." Mr. Hatfield continued, "We're excited as we move into year two, and the next phase of growth and organizational enhancements, including a new Zero Based Spending program launched in June."
Overall, net sales decreased 4.1% in the quarter and 5.9% year to date. Organic net sales decreased 2.2% in the quarter and 0.9% year to date. Excluding the estimated impact of international go-to-market changes, underlying net sales would have decreased by 0.7% in the quarter and increased by 0.9% year to date, according to Edgewell.