Loading...
•
Nov 30, 2024
Helen of Troy Q3 2025 Earnings Report
Helen of Troy's performance was within expectations amidst a challenging consumer environment, marked by growth in Home & Outdoor and International segments but impacted by a weak illness season in Beauty & Wellness. The acquisition of Olive & June enhanced the portfolio, and Project Pegasus remained on track.
Key Takeaways
Helen of Troy reported a 3.4% decrease in consolidated net sales revenue to $530.7 million. GAAP diluted EPS was $2.17, while adjusted diluted EPS was $2.67. The company saw gross profit margin expansion of 90 basis points and adjusted operating margin expansion of 30 basis points. The acquisition of Olive & June was completed subsequent to the quarter's end.
Consolidated net sales decreased by 3.4% to $530.7 million.
Gross profit margin improved by 90 basis points to 48.9%.
GAAP diluted EPS was $2.17, compared to $3.19 in the prior year.
Adjusted diluted EPS decreased to $2.67 from $2.79 year-over-year.
Revenue by Geographic Location
Forward Guidance
The company expects consolidated net sales revenue in the range of $1.888 billion to $1.913 billion, GAAP diluted EPS of $4.60 to $5.02, and non-GAAP adjusted diluted EPS in the range of $7.15 to $7.40. Adjusted EBITDA is expected to be $292 million to $295 million, and free cash flow is projected to be $145 million to $155 million.
Positive Outlook
- Includes an expected incremental net sales contribution of $17 million to $18 million from the Olive & June acquisition.
- Adjusted EPS accretion from the Olive & June acquisition in the range of $0.05 to $0.07 in the fourth quarter of fiscal year 2025.
- Adjusted EBITDA in the range of $3 million to $4 million from the Olive & June acquisition.
- Automation system began to operate as designed during the third quarter of fiscal 2025 and the Company expects to achieve targeted efficiency levels by the end of fiscal 2025.
- Benefits from Project Pegasus are reinvested for growth.
Challenges Ahead
- Consolidated net sales revenue decline of 5.8% to 4.6%.
- Revised expectations for a weak winter and illness season globally, estimated to be $25 million to $30 million for the full fiscal year and $15 million to $20 million in the fourth quarter of fiscal year 2025.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...