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Feb 28, 2022
Helen of Troy Q4 2022 Earnings Report
Helen of Troy reported Q4 2022 results with net sales growth and core adjusted diluted EPS growth.
Key Takeaways
Helen of Troy's Q4 2022 results significantly outperformed expectations, with strong growth in each business segment. Consolidated net sales revenue increased by 14.3% to $582.0 million, and core adjusted diluted EPS grew by 76.8% to $2.51. The company also provided a positive outlook for fiscal 2023, expecting continued top and bottom-line growth.
Consolidated net sales revenue increased by 14.3% to $582.0 million.
Core net sales increased by 17.2% from fiscal 2021.
GAAP diluted EPS was $1.64, compared to $0.90 for the same period last year.
Non-GAAP Core adjusted diluted EPS increased by 76.8% to $2.51.
Helen of Troy
Helen of Troy
Forward Guidance
The Company expects consolidated net sales revenue in the range of $2.38 billion to $2.42 billion, which implies consolidated growth of 6.8% to 8.8% and Core business growth of 8.5% to 10.5%. The Company expects consolidated GAAP diluted EPS of $9.92 to $10.38 and consolidated non-GAAP adjusted diluted EPS in the range of $12.73 to $13.03, which implies consolidated adjusted diluted EPS growth of 3.0% to 5.4% and Core adjusted diluted EPS growth of 4.5% to 7.0%.
Positive Outlook
- Home & Outdoor net sales growth of 19.0% to 21.0%; including net sales from Osprey of $180 million to $185 million.
- Beauty Core business net sales growth of 4.5% to 7.5%; including net sales from Curlsmith of $30 million to $35 million
- Includes adjusted diluted EPS contribution from Osprey of $0.50 to $0.55
- Includes adjusted diluted EPS contribution from Curlsmith of $0.20 to $0.25
- The estimated net favorable impact to net sales of approximately $10 million and adjusted diluted EPS of approximately $0.10 related to the EPA matter
Challenges Ahead
- Health & Wellness net sales decline of 1.0% to growth of 1.0%.
- April 2022 foreign currency exchange rates will remain constant for the remainder of the fiscal year.
- An estimated unfavorable impact to net sales of approximately $10 million and adjusted diluted EPS of approximately $0.10 due to not being able to ship certain products on a timely basis related to damage to a third party storage facility caused by a severe weather event in March 2022.
- Estimated incremental after-tax inflationary cost pressures in the range of $75 million to $80 million, or approximately $3.10 to $3.30 of adjusted diluted EPS
- Expected interest expense in the range of $35 million to $36 million due to higher average levels of debt due to recent acquisitions and the expectation the Federal Open Market Committee (“FOMC”) will increase interest rates by 225 basis points during calendar year 2022