Helen of Troy Limited reported a 9.7 consolidated net sales of $521.4 million in its second quarter, an increase of 9.7% from fiscal 2022, a decrease of 1.8% from fiscal 2021 and an increase of 25.9% from fiscal 2020.
The company, which markets housewares, home environment appliances and personal care appliances under such brands as OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools and Revlon, attributed its consolidated net sales gain primarily to the contribution from the acquisitions of Osprey of $47.4 million and Curlsmith of $10.2 million.
That sales growth was partially offset, according to the company, by a 1.5% year-over-year decrease from Organic business reflecting lower sales in the Beauty segment hair appliances category and home-related categories in the Home & Outdoor segment due to lower consumer demand, shifts in consumer spending patterns and reduced orders from retail customers due to higher trade inventory levels. These factors were partially offset, Helen of Troy, reported by an increase in sales in the Health & Wellness segment as a result of the EPA packaging compliance matter and related stop-shipment actions in the prior-year period; international sales growth; higher prestige market personal care category sales in the Beauty segment; and the impact of customer price increases related to rising freight and product costs.
Helen of Troy posted a consolidated operating income of $46.9 million in the second quarter compared to $67.3 million in the year-earlier period. The company cited an increase in outbound freight costs; an increase in EPA compliance costs of $5.4 million; restructuring charges of $4.8 million; increased marketing expense, reduced Beauty segment sales within consolidated; a less favorable product mix amortization expense, within the Home & Outdoor segment due to the acquisition of Osprey; higher inventory obsolescence expense; higher salary and wage costs, the net dilutive impact of inflationary costs and related customer price increases; and higher distribution expense.
Julien Mininberg, Helen of Troy CEO, said, “Although we reported results in-line with our expectations for the quarter, we see consumers increasingly adjusting their spending patterns in response to rising inflation and the impact of higher interest rates, particularly in our premium segments in some categories. Additionally, retailers continue to adjust their inventories to better align with their updated sales forecasts. We expect the current external operating environment to remain highly challenging, causing us to lower our fiscal year 2023 outlook. Our entire organization is hard at work on optimizing results in this environment while executing the most important strategic projects.”