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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.
Helen of Troy
Helen of Troy
Helen of Troy Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com 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%.
- Beauty Core business net sales decline of 21% to 19%; including net sales from Curlsmith of $30 million to $35 million.
- September 2022 foreign currency exchange rates will remain constant for the remainder of the fiscal year.
- Estimated incremental after-tax inflationary cost pressures in the range of $55 million to $60 million, or approximately $2.25 to $2.50 of adjusted diluted EPS.
- Expected interest expense in the range of $45 million to $47 million due to the current assumption that the Federal Open Market Committee will increase interest rates by 450 basis points during calendar year 2022.