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Nov 30, 2019
Helen of Troy Q3 2020 Earnings Report
Reported strong Q3 2020 results with sales growth and increased profitability.
Key Takeaways
Helen of Troy reported a strong third quarter with a 10.1% increase in consolidated net sales and a 30.0% increase in adjusted diluted EPS. The company is raising its sales and adjusted EPS outlook for the fiscal year.
Consolidated net sales increased by 10.1%, driven by a 10.7% core business growth.
Leadership Brand net sales increased by 10.6%.
Online channel net sales increased by approximately 30%.
GAAP diluted EPS from continuing operations was $2.71, while non-GAAP adjusted diluted EPS increased by 30.0% to $3.12.
Helen of Troy
Helen of Troy
Forward Guidance
The Company has updated its outlook based on the Company's year-to-date performance and now expects consolidated net sales revenue to be in the range of $1.650 to $1.675 billion and consolidated GAAP diluted EPS from continuing operations of $7.29 to $7.45, and non-GAAP adjusted diluted EPS from continuing operations in the range of $8.90 to $9.10.
Positive Outlook
- Housewares net sales growth of 19% to 21%
- Beauty net sales growth of 3% to 5%
- Consolidated sales growth of 5.5% to 7.1%
- Strong performance year to date
- Increase in growth investments
Challenges Ahead
- Health & Home net sales decline of 2% to 4%
- Expected increase in growth investments
- Higher expected incentive compensation expense
- Higher expected freight and distribution costs
- The likelihood and potential impact of any fiscal 2020 acquisitions and divestitures, future asset impairment charges, future foreign currency fluctuations, further tariff increases or decreases, or future share repurchases are unknown and cannot be reasonably estimated