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May 31, 2022
Helen of Troy Q1 2023 Earnings Report
Helen of Troy experienced a decline in consolidated net sales but performed stronger than expected.
Key Takeaways
Helen of Troy reported a 6.1% decrease in consolidated net sales to $508.1 million and a GAAP diluted EPS of $1.02. Core adjusted diluted EPS was $2.41, a 27.2% decrease from the previous year. The company has updated its fiscal 2023 net sales and diluted EPS outlook, expecting consolidated net sales to be $2.150-$2.200 billion and consolidated diluted EPS to be $6.51-$7.11.
Consolidated net sales decreased by 6.1% compared to fiscal 2022, but increased by 35.0% compared to fiscal 2020.
Core business net sales decreased by 2.5% from fiscal 2022, but increased by 43.7% from fiscal 2020.
GAAP diluted EPS was $1.02, compared to $2.31 for the same period last year.
Core adjusted diluted EPS was $2.41, a decrease of 27.2% from fiscal 2022.
Helen of Troy
Helen of Troy
Helen of Troy Revenue by Geographic Location
Revenue by Geographic Location
US Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The Company now expects consolidated net sales revenue in the range of $2.15 billion to $2.20 billion, which implies a decline of 3.3% to 1.0%, and a Core business decline of 1.8% to growth of 0.5%. The Company now expects consolidated GAAP diluted EPS of $6.51 to $7.11 and consolidated non-GAAP adjusted diluted EPS in the range of $9.85 to $10.35, which implies a decrease in consolidated adjusted diluted EPS in the range of 20.3% to 16.3%, and a decrease in Core adjusted diluted EPS in the range of 19.2% to 15.1%.
Positive Outlook
- Low double-digit growth in the second quarter due to the second quarter of fiscal 2022 having the largest adverse impact from the EPA matter.
- Approximately flat sales growth in the third quarter.
- Home & Outdoor net sales growth of 9.0% to 11.0%; including net sales from Osprey of $180 million to $185 million.
- Health & Wellness net sales decline of 10.0% to 8.0%.
- Beauty Core business net sales decline of 7.0% to 5.0%; including net sales from Curlsmith of $30 million to $35 million.
Challenges Ahead
- A low double-digit sales decline in the fourth quarter due to the high base of the fourth quarter of fiscal 2022, which includes approximately two months of sales from the Osprey acquisition.
- A mid-teen decline in the second quarter primarily due to lower adjusted operating margin and higher interest expense.
- A low double-digit decline in the third quarter primarily due to higher interest expense and a higher adjusted effective tax rate.
- A mid-single digit decline in the fourth quarter primarily due to lower net sales, higher interest expense, and a higher adjusted effective tax rate.
- Updated fiscal year net sales outlook reflects expectations by segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income