Banana Boat Maker Gains as Pandemic Summer Lifts Sunscreen Sales

(Bloomberg) -- Edgewell Personal Care Co. jumped after the maker of Banana Boat sunscreen reported strong demand for skin-care products during the warmer months of the pandemic.

With the coronavirus keeping people outdoors and away from crowded places, the company benefited from an “extended sun-care season,” according to Chief Financial Officer Daniel Sullivan. Along with heavy demand for Wet Ones sanitizing wipes, that helped drive sales in the skin-care division up 15% in the fourth quarter, the company said.

The results underscore the dramatic shifts in consumer spending during the pandemic that have driven significant gains for makers of packaged goods. While many discretionary purchases have been put on hold, sales of cleaning supplies, snacks and other packaged goods have soared.

Edgewell shares rose as much as 7.4% Thursday in New York.

Total net sales fell 7.4% during the quarter ending Sept. 30 to $488.8 million amid soft demand for razors, though the figure topped Wall Street’s expectations. Earnings of 59 cents a share also beat estimates.

Edgewell expects the trends around sun-care and Wet Ones to lift revenue into the fiscal year 2021. The company sees organic sales growth of low single digits and net sales gains in the mid-single digits.

“This is the first year where we feel like we will not lose sales space nor quality,” Chief Executive Office Rod Little told investors on a conference call.

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