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Aug 31, 2022
Helen of Troy Q2 2023 Earnings Report
Reported a 9.7% increase in consolidated net sales growth and a 14.3% decrease in core adjusted diluted EPS.
Key Takeaways
Helen of Troy Limited reported second quarter fiscal 2023 results with consolidated net sales growth of 9.7% and core net sales growth of 11.1% from fiscal 2022. GAAP diluted EPS was $1.28, and core adjusted diluted EPS was $2.27, a decline of 14.3% from fiscal 2022. The company announced Project Pegasus, a restructuring plan targeting annualized savings of $75-$85 million and updated fiscal 2023 net sales and diluted EPS outlook.
Consolidated net sales revenue increased 9.7% to $521.4 million compared to $475.2 million.
Core business net sales increase of 11.1% from fiscal 2022.
GAAP diluted EPS of $1.28, compared to $2.11 for the same period last year.
Non-GAAP Core adjusted diluted EPS of $2.27, a decrease of 14.3% from fiscal 2022.
Revenue by Geographic Location
Forward Guidance
The Company now expects consolidated net sales revenue in the range of $2.00 billion to $2.05 billion, which implies a decline of 10.0% to 7.8%, and a Core business decline of 8.6% to 6.4%. The Company now expects consolidated GAAP diluted EPS of $4.26 to $4.93 and consolidated non-GAAP adjusted diluted EPS in the range of $9.00 to $9.40, which implies a decrease in consolidated adjusted diluted EPS in the range of 27.2% to 23.9%, and a decrease in Core adjusted diluted EPS in the range of 26.1% to 22.8%.
Positive Outlook
- Home & Outdoor net sales growth of 3.5% to 5.5%; including net sales from Osprey of $180 million to $185 million.
- The assumption that the severity of the cough/cold/flu season will be in line with pre-COVID historical averages.
- Estimated net favorable impact to net sales of approximately $10 million and adjusted diluted EPS of approximately $0.10 related to the EPA matter.
- A reported consolidated GAAP effective tax rate range of 18.4% to 17.9% for the full fiscal year 2023 and a consolidated adjusted effective tax rate range of 12.5% to 13.5%.
- An estimated weighted average diluted shares outstanding of 24.2 million.
Challenges Ahead
- Health & Wellness net sales decline of 13% to 11%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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