Helen of Troy Ltd

HELE

Equity

ISIN BMG4388N1065 / Valor 938381

NASDAQ (2024-09-16)

USD 59.17+1.98%

Helen of Troy Ltd
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About company

Helen of Troy Ltd is a multinational consumer products company with a diversified portfolio of well-known brands, generating $2.1 billion in sales in fiscal 2023. The company has a proven track record of growth through both organic means and strategic acquisitions, with a focus on expanding operating margins and improving efficiency. Helen of Troy operates in two main business segments: Beauty & Wellness and Home & Outdoor, with a strong emphasis on new product innovation, quality, and competitive pricing. The company's global presence and commitment to building strong partnerships with suppliers have contributed to its leading market positions and continued success in the industry.

Summarized from source with an LLMView SourceSector: Healthcare

Net Sales Decline

Helen of Troy Ltd reported a consolidated net sales revenue of $416.8 million for the first quarter of fiscal 2025, marking a 12.2% decrease compared to the same period in fiscal 2024. This decline was primarily driven by reduced sales in hair appliances, prestige hair care products, and humidifiers within the Beauty & Wellness segment, as well as lower replenishment orders from retail customers in the Home & Outdoor segment.

Gross Profit Margin Expansion

Despite the decline in net sales, Helen of Troy Ltd achieved a gross profit margin of 48.7% in the first quarter of fiscal 2025, an improvement of 330 basis points from 45.4% in the same quarter of the previous year. This increase was attributed to a favorable segment mix, lower commodity and product costs, and reduced inventory obsolescence expenses.

Operating Income and Margins

Helen of Troy Ltd's operating income for the first quarter of fiscal 2025 was $30.8 million, or 7.4% of net sales revenue, compared to $40.6 million, or 8.6% of net sales revenue, in the same period of fiscal 2024. The decrease in operating margin was primarily due to higher selling, general, and administrative expenses, partially offset by the gross profit margin expansion.

Adjusted Earnings Per Share

For the first quarter of fiscal 2025, Helen of Troy Ltd reported a GAAP diluted EPS of $0.26, down from $0.94 in the same quarter of the previous year. On a non-GAAP adjusted basis, diluted EPS was $0.99, compared to $1.94 in the first quarter of fiscal 2024. The decrease in adjusted EPS was mainly due to lower adjusted operating income and a higher effective income tax rate.

Updated Fiscal 2025 Outlook

Helen of Troy Ltd has updated its fiscal 2025 outlook, lowering its consolidated net sales forecast to a range of $1.885 billion to $1.935 billion. The company also revised its GAAP diluted EPS guidance to $4.69-$5.45 and adjusted diluted EPS to $7.00-$7.50. Additionally, the adjusted EBITDA forecast was lowered to $287-$297 million, and free cash flow is now expected to be between $220 million and $240 million.

Summarized from source with an LLMView Source

Key figures

-49.5%1Y

-74.4%3Y

-60.1%5Y

Performance

48.0%1Y

45.0%3Y

43.8%5Y

Volatility