Edgewell Personal Care CEO Rod Little instructed CNBC on Tuesday he expects demand for the corporate’s care and grooming merchandise to extend within the coming months, because the depth of the coronavirus pandemic wanes.
“I might guess by the point we get to late spring, summer time in our classes, you are going to see extra folks again within the workplace. That is extra shaving, extra each day grooming routines,” Little mentioned in an interview on “Closing Bell.”
“And you are going to see lots of people getting out, occurring trip with leisure journey, which is able to drive sunscreen,” Little added. “We’re optimistic for the stability of the 12 months.”
Edgewell — the father or mother agency of Banana Boat, Playtex and Schick — additionally ought to have a neater time assembly that demand, Little mentioned. Late final 12 months, the corporate’s manufacturing was restricted as staff known as out sick in the course of the peak of the Covid omicron wave. On the peak in December, Little estimated about 10% of Edgewell’s manufacturing workforce was out with Covid.
“However we’re past that now. The excellent news is, as I have a look at it right now, the omicron outs are again to what I might name a standard fee, so I am fairly optimistic our potential to fulfill the demand going ahead goes to be higher,” Little mentioned.
Little’s feedback on CNBC got here after Edgewell reported combined first-quarter outcomes earlier than Tuesday’s market open. Income of $463 million missed Wall Avenue estimates of $465 million, in response to Refinitiv, whereas per-share earnings of 42 cents topped forecasts by 1 cent.
Shares of Edgewell on Tuesday tumbled 13.2%, a steep decline that Little attributed to the corporate’s commentary on inflation. Administration now expects 500 foundation factors of inflationary headwinds on the price of items offered, up from prior estimates of roughly 400 foundation factors. A foundation level equals 0.01%.
Regardless of an uptick in inflationary pressures, Little mentioned there may be some excellent news for traders as a result of it is primarily associated to elevated supplies prices. It’s unlikely these are structural adjustments, he mentioned.
Little mentioned sure chemical compounds utilized in solar care merchandise have jumped in value. Nonetheless, he mentioned earlier spikes in different areas, comparable to resins, have already peaked.
“Now it is simply, ‘How briskly does it come again down?'” Little mentioned. “So I feel the brand new inflation up that we have seen, personally, is rather more transitory in nature.”