Helen of Troy, helped by gains in select home product categories, beat Wall Street estimates in the second quarter despite lower year-over-year overall sales and earnings.
Helen of Troy develops and markets personal care appliances, home environment appliances, housewares, beverageware and outdoor gear under such brands as Revlon, Honeywell, Pur, Braun, Vicks, Oxo, Hydro Flask and Osprey.
Net income was $17 million, or 74 cents per diluted share, versus $27.4 million, or $1.14 per diluted share, in the year-previous quarter, with the decline resulting from lower operating income and an increase companyin the effective income tax rate, partially offset by lower weighted average diluted shares outstanding and a decrease in interest expense, the company reported. Adjusted for one-time events, net income decreased $27.5 million, or $1.21 per diluted share, versus $41.8 million, or $1.74 per diluted share, in the year-before quarter.
An analyst comparable earnings forecast published by Yahoo Finance had Helen of Troy adjusted diluted earnings per share coming in at $1.05 and revenues coming in at $458.2 million.
Consolidated net sales revenue slipped 3.5% to $474.2 million in the prior-year quarter principally because of a decline in the Beauty and Wellness segment, impacted by lower sales of hair appliances, air purifiers and humidifiers, Helen of Troy maintained. Home and Outdoor growth in the household and insulated beverageware categories, international gains and higher sales of fans and thermometers within Beauty and Wellness partially offset the overall Beauty and Wellness declines.
Consolidated operating income was $34.9 million down from $46.8 million in the year-earlier quarter, while adjusted operating income was $46.4 million down from $62.3 million.
Home and Outdoor net sales advanced to $241.9 million from $240 million year over year in the quarter, while Beauty and Wellness net sales declined to $232.3 million from $251.6 million. Home and Outdoor operating income was $31.2 million down from $36.1 million year over year in the period, while Beauty and Wellness operating income was $3.7 million down from $10.7 million.
Noel Geoffroy, Helen of Troy CEO, said, “We are pleased to report second quarter results that were above expectations, and we are reaffirming our annual outlook for net sales, adjusted EPS, and adjusted EBITDA. During the quarter, we took decisive actions toward our long-term strategic initiatives, including strengthening the core and further shaping our growth portfolio. In addition, despite persistent macro headwinds, we achieved early results on our efforts to ‘Reset and Revitalize’ our business, driven by improved brand fundamentals, optimized marketing and innovation, and expanded distribution.”
