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Nov 30, 2023
Helen of Troy Q3 2024 Earnings Report
Helen of Troy reported a decrease in consolidated net sales but an expansion in GAAP operating margin.
Key Takeaways
Helen of Troy reported a slight decrease in consolidated net sales revenue of 1.6% to $549.6 million. However, the company saw improvements in gross profit margin and operating margin, alongside a GAAP diluted EPS of $3.19 and adjusted diluted EPS of $2.79. The company is narrowing its full year outlook for net sales and GAAP diluted EPS, while lowering adjusted EBITDA and maintaining free cash flow and net leverage ratio reduction.
Consolidated net sales revenue decreased by 1.6% to $549.6 million.
GAAP diluted EPS increased to $3.19, while adjusted diluted EPS rose to $2.79.
Gross profit margin improved by 210 basis points to 48.0%.
The company is on track with Project Pegasus to deliver $20 million in fiscal 2024 savings.
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 expects consolidated net sales revenue in the range of $1.975 billion to $2.0 billion. GAAP diluted EPS is expected to be $6.67 to $7.05, and non-GAAP adjusted diluted EPS in the range of $8.60 to $8.85. Consolidated adjusted EBITDA is expected to be $330 million to $335 million. Free cash flow is expected to be $250 million to $270 million and its net leverage ratio to end fiscal 2024 at 2.0x to 1.85x.
Positive Outlook
- The company anticipates that sell-in will more closely match sell-through during the remainder of fiscal 2024.
- The company expects free cash flow in the range of $250 million to $270 million.
- The company expects its net leverage ratio to end fiscal 2024 at 2.0x to 1.85x.
- Project Pegasus is on track to deliver $20 million fiscal 2024 savings target.
- Retail inventory on hand is at healthy levels.
Challenges Ahead
- The company expects a decline of 4.7% to 3.5% in consolidated net sales revenue.
- The company expects a decline of 9.0% to 6.3% in adjusted EPS.
- The company expects slower consumer demand in some discretionary categories.
- The company expects lower illness incidence than pre-COVID historical averages.
- The company expects softer-than-expected holiday sales.