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Feb 28, 2023
Helen of Troy Q4 2023 Earnings Report
Helen of Troy decreased net sales and earnings per share in Q4 2023.
Key Takeaways
Helen of Troy reported a 16.7% decrease in consolidated net sales revenue and a decrease in GAAP diluted EPS from $1.64 to $1.50. The company's performance was better than expected, with adjusted operating margin expansion and strong free cash flow.
Consolidated net sales revenue decreased by 16.7% to $484.6 million.
GAAP diluted EPS decreased to $1.50 from $1.64.
Adjusted EBITDA margin improved to 15.2% compared to 13.5% in the same period last year.
The company accelerated debt pay down due to inventory reduction.
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 $1.965 billion to $2.015 billion and non-GAAP adjusted diluted EPS in the range of $8.50 to $9.00 for fiscal year 2024.
Positive Outlook
- Operational earnings growth
- Strong free cash flow
- Expand gross and adjusted operating margins
- Deliver adjusted EPS growth in the back half of the fiscal year
- Benefits of debt deleveraging and lower inbound freight and product costs more fully in the second half of the year
Challenges Ahead
- Continued slower economy
- Uncertainty in spending patterns
- Consumers seek to prioritize value in the current environment of inflation and higher interest rates
- Decline in net sales of approximately 9%-7% and 7%-5% in the first and second quarters of fiscal 2024, respectively.
- Decline in adjusted diluted EPS of approximately 20% to 30% in the first half of fiscal 2024