Edgewell Personal Care Company (NYSE:EPC) Q1 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 10:00 am ET

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Edgewell Personal Care Company (NYSE:EPC) Q1 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Our first question comes from Jason English of Goldman Sachs. Please go ahead.

Analyst
Jason English

Hey. Good morning, folks. Thank you for squeezing me in. David, congratulations on the pending retirement. You'll certainly be missed and Rod congrats on the new role. Onto my questions. I've got two. First, I was just hoping you can walk us through the performance within Wet Shave in North America between Men's, Women's on both branded side and then private label.

And then, secondly, thinking about strategic direction going forward, obviously, new news today on the review of Infant and Sun Care. Can you comment at all on the other side of your potential acquisition agenda, as you focus a little bit more on Skin Care going forward? Thank you.

Executive
Rod R. Little

Sure, Jason. Thank you for the questions. On US Wet Shave performance in the quarter, Men's Systems were down mid-single digits. Women's Systems were down double digits, little over 10%. Disposables down mid-single digits. Shave preps down slightly, nearly flat, for the overall 7% decline in Wet Shave in North America. Very different performance by retailer segment, as you might imagine, mass and then all the other channels.

Relative to the second question on the divestiture piece, we're not committing to a divestiture. We're prepared to assess the alternatives. Strategically, as we said, if we get to a point where that make sense, we thought about the core business that we've defined as Wet Shave, Sun and Skin, that's the core, that's where we're going to invest, whether it be organically and investments we make in the core business and capabilities or inorganically via acquisition. I don't think we want to be more specific than that.

Analyst
Jason English

Thank you. One quick follow up. Thank you for the clarity on what drove US. The Women's Systems down double digit, surprising in context of the innovation you are pushing out there. Can you give us a little bit more color and context on what's happening competitively there and what drove the declines?

Executive
Rod R. Little

Yeah. The biggest driver of that was pipe fill from last year, Jason. It was the timing of when Intuition f.a.b. and some of the other launches came in last year. Our launches this year go more towards later in the year. That's the single biggest driver and then we did have some of the pricing reset just hit a little bit, but the bulk of that is going to hit in Q2.

Analyst
Jason English

Got it. Thank you. Very helpful. I'll pass it on.

Executive
David P. Hatfield

Thank you, Jason. Operator, next question, please.

Operator
Operator

Our next question comes from Nik Modi of RBC Capital Markets. Please go ahead.

Analyst
Nik Modi

Thanks. Good morning, everyone. So, just two quick ones for me. Rod, maybe you can just give us kind of a State of the Union on the CFO search. I know you said it's pending, you initiated search. But just curious where you are on the process? Have you identified any candidates?

And