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Nov 30, 2020
Helen of Troy Q3 2021 Earnings Report
Reported third quarter fiscal 2021 results with consolidated net sales growth and adjusted diluted EPS growth.
Key Takeaways
Helen of Troy reported an exceptional third quarter with a 34.3% increase in consolidated net sales and a 20.5% growth in adjusted EPS. The company's performance was driven by strong momentum across all business segments and channels. They are also initiating fiscal year 2021 guidance projecting that Helen of Troy will cross the $2 billion sales milestone for the first time and grow its adjusted EPS by $2.20 per share.
Consolidated net sales increased by 34.3%, with organic business net sales growing by 30.3%.
GAAP diluted EPS was $3.34, compared to $2.71 for the same period last year.
Adjusted diluted EPS increased by 20.5% to $3.76, compared to $3.12 for the same period last year.
The company is initiating fiscal 2021 GAAP diluted EPS outlook of $10.29 - $10.46 and adjusted diluted EPS outlook of $11.50 - $11.70.
Forward Guidance
For fiscal year 2021, the company expects consolidated net sales revenue in the range of $2.075 to $2.1 billion, which implies consolidated sales growth of 21.5% to 23.0%. The Company expects consolidated GAAP diluted EPS of $10.29 to $10.46 and non-GAAP adjusted diluted EPS in the range of $11.50 to $11.70.
Positive Outlook
- COVID-19 related demand trends seen in the second and third quarters of fiscal 2021 continue through the fourth quarter.
- Housewares net sales growth of 12.0% to 12.5%
- Health & Home net sales growth of 27.5% to 30.0%
- Beauty net sales growth of 27.0% to 28.0%
- An estimated weighted average diluted shares outstanding of 25.3 million.
Challenges Ahead
- The impact of the cough/cold/flu season on the fourth quarter will be below average due to the COVID-19 impact on back to school, work from home, travel, brick and mortar shopping, and group gatherings, compared to an above average impact in the same period last year
- The more difficult comparison to the fourth quarter of fiscal 2020, which included initial COVID-19 demand surges in the Health & Home segment and an initial surge in demand for the One-Step family of products in the Beauty segment.
Historical Earnings Impact
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