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Helen Of Troy Gains Fall Short Of Wall Street View

Thursday July 10th, 2014 - 11:57AM


In the first quarter ended May 31, Helen of Troy Inc. posted net income of $16.4 million, or 55 cents per fully diluted share, versus $14.4 million, or 45 cents per fully diluted share, in the year-prior period. Adjusted income came in at $24.6 million, or 83 cents per fully diluted share, compared to $26.4 million, or 82 cents per fully diluted share, for the year-earlier quarter.

A Thomson Reuters average analyst estimate was for adjusted diluted earnings per share of 93 cents.

Net sales were $311.8 million versus $304.5 million in the first quarter of the prior fiscal year.

Operating income was $23.1 million, including $9 million in non-cash asset impairment charges related to certain trademarks in the company’s Personal Care operation, according to Helen of Troy. In comparison, operating income for last year's first quarter was $20.6 million, the company stated, including $12 million in non‐cash asset impairment charges related to certain trademarks in the personal care segment.

“We are off to a solid start in fiscal year 2015," Julien Mininberg, Helen of Troy CEO said in announcing the financial results. “During the quarter, we increased our net sales revenue by 2.4% and managed expenses well to deliver adjusted EBITDA of $41.9 million and adjusted diluted EPS of 83 cents."

He added that, in the first quarter, "we continued our efforts to transform our organization and reinvigorate our culture. We also advanced our goal of accelerating and sustaining organic growth by investing prudently in our strongest businesses. We saw a double digit increase in our Healthcare/Home Environment segment revenues and a solid increase in our Housewares segment revenues on top of strong gains in the prior year in both of these segments. We further engaged in shareholder friendly capital allocation policies through the repurchase of 4.2 million shares and the completion of the acquisition of Healthy Directions at the end of June, adding a growing business that is accretive to our gross margin, adjusted EBITDA and adjusted diluted EPS. Our Personal Care segment continued to deliver strong cash flow. However as anticipated, sales trailed the prior year quarter. To unlock more of this segment’s cash flow generation capability and achieve organic growth, we are focused on increasing product innovation, adding additional talent and redirecting our existing resources to the strongest opportunities."