While everyone is focused on the challenges within Edgewell's North American business – and there are certainly challenges – a silent revolution is brewing overseas. Edgewell's international performance, often overshadowed by the company's domestic struggles, is not only exceeding expectations but demonstrating a level of sustained growth that could propel the stock to new heights.

This isn't just a temporary blip or a one-time benefit. Edgewell's management is actively reshaping their international strategy, and the results are beginning to speak for themselves. In Q1 of fiscal year 2024, international organic growth exploded, hitting a staggering 16%. This, against a backdrop of a North American business battling declining sales and shifting consumer behaviors, paints a powerful picture of just how potent this international engine could become.

What makes this even more compelling is the fact that this growth isn't solely reliant on pricing power, a tactic many companies have deployed to combat inflation. Edgewell's international success is built on a foundation of both robust volume growth (almost double digits in Q1) and strategic price increases in key markets like Japan. This balanced approach signifies a deeper consumer connection and a willingness to pay for Edgewell's brands.

The company's recent earnings calls are peppered with clues about this strategic shift. A year ago, management centralized international operations, bringing non-North American markets under the direct purview of the CEO and CFO. This move, coupled with significant leadership changes in key markets like China, Japan, and Europe, signals a concerted effort to streamline operations and empower local teams.

But the real key to unlocking even greater international potential lies in tailoring innovation to local needs. As CEO Rod Little pointed out in the Q1 2024 Earnings Call Transcript: "There's a big opportunity from here…to have our innovation be fit for purpose for more local Asian and European markets." This move away from a "global consumer" approach, towards one that recognizes the nuances of diverse markets, could be a game-changer. Imagine the impact of innovations specifically designed to capture the hearts (and wallets) of Chinese consumers or products tailored to the preferences of the European market.

"In the Q2 2024 Earnings Call Transcript, CFO Dan Sullivan further emphasized the strength of international markets: "I think two, the only piece that I would add is there where we struggled in North America Shave and faced some headwinds and channels, as Rod articulated, we were equally accelerating internationally. And again, we don't talk a lot about it but the international represents over 50% of our Shave portfolio and we've now grown that double-digits for the first half of the year, up 6%, 5% in the quarter in 2Q.""

International vs. North America Organic Growth

The numbers support this hypothesis. Looking back at Edgewell's international performance in previous years, a clear pattern emerges:

This trend isn't just about stronger leadership and improved operations. It reflects a fundamental shift in Edgewell's approach to international markets. They're moving from a position of "exporting" American ideas to one of genuine engagement with local consumers and their needs.

Think about it: international markets already represent 50% of Edgewell's business. If this strategic shift continues to bear fruit, driving even greater growth in those regions, the impact on the company's overall performance – and its stock price – could be explosive.

"Fun Fact: Did you know that Edgewell Personal Care Company was founded in 1772? That's older than the United States itself! This legacy of innovation and adaptation suggests a company with the resilience and foresight to navigate the complex landscape of the global market and capitalize on the vast opportunities that lie ahead."

This international growth story is still unfolding, a quiet revolution that could soon make a lot of noise in the market. While the spotlight remains on Edgewell's domestic challenges, savvy investors would be wise to turn their attention to the powerful international engine that could drive this stock to a whole new level.