Helen of Troy has reported overall sales growth of 2.6% in the third quarter ended November 30, 2017, led by its Housewares and Home & Health segments.
For the third quarter, consolidated net sales revenue increased 1.9% to $453 million compared to $444.4 million in the same quarter last year. The online channel was a key driver, gaining 18.6% to now represent 17.4% of total sales for the third quarter, according to Julien Mininberg, CEO, Helen of Troy.
Net loss was $30.4 million compared to net income of $57.6 million in last year’s third quarter. Net loss includes after-tax non-cash asset impairment charges of $88.6 million and after-tax restructuring charges of $1.2 million, with no comparable charges for the same period last year. Adjusted income excluding charges was $68.8 million, compared to $66 million.
Housewares net sales increased by 2.6%, reflecting an increase in online channel sales, incremental distribution with existing customers, international growth and new product introductions for both the Hydro Flask and Oxo brands. This growth was partially offset by the unfavorable impact of lower store traffic and soft consumer spending at traditional brick and mortar retail, and the unfavorable comparative impact of strong sales into the club channel in the same period last year.
Health & Home net sales increased 6.2% reflecting growth in online channel sales, expanded international distribution, and incremental distribution with existing customers. Beauty net sales decreased 2.8% primarily reflecting a decline in the personal care category, which offset solid growth in both retail and professional appliance sales, particularly to online retail customers.
“Our Health & Home and Housewares segments led sales growth in the quarter, and both segments achieved higher adjusted operating margins compared to the prior year period. In our beauty segment, sales and profitability benefitted from new product introductions in the appliance category, which was offset by continued challenges in the personal care category,” said Mininberg. “Subsequent to the end of the third quarter, we completed the sale of the nutritional supplements business. The sale of Healthy Directions demonstrates our willingness to sharpen our portfolio and allows us to focus even more resources on our leadership brands.”