Helen of Troy Limited reported consolidated net revenue of $624.9 million, a 2% percent decrease compared to the same period in 2021 and a 31.6% increases compared to the period in 2020.
The consolidated net sales decline, Helen of Troy reported, was driven in part by a 2.2% decline from organic business attributed mainly to a decrease in sales in the Health & Home segment because of an EPA packaging compliance matter and related stop shipment actions; stronger COVID-19 driven demand for healthcare and healthy living products, primarily in thermometry and air filtration, in the comparative prior year period; and a net sales revenue decline in non-core business primarily because of to the sale of the company’s North America Personal Care business during the second quarter of fiscal 2022.
These factors, Helen of Troy said, were partially offset by higher brick and mortar and online channel sales in the Beauty and Housewares segments because of strong consumer demand; earlier than typical customer orders as retailers accelerated orders into the third quarter to try to avoid supply chain disruptions during the holiday season; the impact of customer price increases related to rising freight and product costs; higher sales in the club and closeout channels; and the favorable comparative impact of COVID-19 reduced store traffic and a soft back-to-school season in the prior-year period.
The company noted online channel net sales declined year over year in the third quarter by 7.4% and gained 23.7% compared to the quarter in 2020
Helen of Troy posted GAAP consolidated operating income of $90.0 million in the quarter compared to $100.7 million in the same period last year.
Helen of Troy Housewares net sales revenue in the third quarter gained 10.7% against the 2021 period to $246.1 million.
Operating income from Housewares was $43.2 million in the third quarter, compared to $37.7 million in the year-earlier period. Income was impacted, according to Helen of Troy, by higher inbound freight expense and related customer price increases, a less favorable channel mix, an increase in marketing expense; and higher acquisition-related expense in connection with the recent Osprey acquisition.
Health & Home net sales revenue for the third quarter decreased 18.5% year over year to $203.9 million. Organic sales declines in the segment were partially offset by an increase in sales of humidification products and new product introductions.
Operating income in Health & Home was $13.6 million compared to $30.5 million a year earlier.
Helen of Troy’s core Beauty business net sales revenue in the third quarter increased 15.3% year over year. Total Beauty segment net sales revenue increased 5.9% to $174.8 million primarily because of core business growth partially offset by the sale of the non-core North America Personal Care business during the second quarter of fiscal 2022.
Operating income from the Beauty segment was $33.2 million in the recent third quarter, compared to $32.6 million, or 19.7% of segment net sales revenue.
Helen of Troy CEO Julien Mininberg said, “We are also very pleased to be able to raise our outlook for the fiscal year, reflecting the strength of our third quarter and the positive trends we see in our business during the fourth quarter. For the full fiscal year, we now expect to grow core net sales 2% to 3% over last year’s 25.1% increase, grow core adjusted diluted EPS 4.7% to 6.5% over last year’s 26.5% increase, and expand margins.”
Mininberg added, “Looking ahead, we plan to use the proven combination of our inflation playbook, investing in our leadership brands, creating efficiencies through our global shared services platform, and harnessing the excellence of our organization and culture to address obstacles such as continued inflationary cost pressures expected next fiscal year.
