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Taxes Hurt Q2 Earnings But Helen Of Troy Operating Income, Sales Advance

Wednesday October 10th, 2012 - 2:37PM

Personal care and healthcare/home environment products supplier Helen of Troy Ltd. today reported 2013 second quarter net income of $23 million, or 72 cents per diluted share, versus $23.6 million, or 74 cents per share, in the year-prior period. Operating income was $30.8 million in the last completed quarter versus $30.3 million in the year-earlier period.

Net sales revenue increased 3.6% to $287.4 million. A year-over-year increase in tax expense unfavorably impacted net income and earnings per diluted share, the company stated.

Second quarter net sales in the company’s Housewares segment increased 1.1% to $64.6 million versus the period last year. Net sales in the Personal Care segment decreased 2.5%, to $112.4 million. As for the Healthcare/Home Environment operation, sales increased 12.4% to $110.5 million. That figure includes $26.3 million of net sales from the company’s recently acquired PUR water filtration business.

Gerald Rubin, Helen of Troy chairman, CEO and president, said in commenting on second quarter results, "During the second quarter, we achieved record net sales revenue and record operating income. Similar to other global consumer products companies, we faced many challenges in light of continuing consumer uncertainty and global economic problems. We are pleased that we were able to achieve growth in net sales revenue, operating income and EBITDA without share-based compensation, in a challenging retail sales environment. As a company, we continue to have a very strong balance sheet and generate a significant amount of cash, which can be used to further innovate our businesses and make future acquisitions. We are firmly committed to executing our strategic vision for Helen of Troy, even as the worldwide economic environment remains challenging.”

He added, “Based on our results for the second quarter of fiscal 2013 and our outlook for a continuingly challenging retail sales environment, we are adjusting our expectations for the full fiscal year. While we still expect net sales revenue for fiscal year 2013 to be in the range of $1.3 billion to $1.325 billion, we now expect earnings per fully diluted share to be in the range of $3.50 to $3.60 for fiscal year 2013, ending February 28, 2013.”