Even as Housewares revenues declined slightly, Helen of Troy Ltd. posted net income of $18.8 million, or 65 cents per fully diluted share, for the second quarter ended August 31, versus $23.3 million, or 72 cents per fully diluted share, in the year-prior-period. Adjusted income was $28.5 million, or 99 cents per fully diluted share, versus $31.2 million, or 97 cents per fully diluted share, for the period last year, the company stated.
A published average analyst estimate from Thomson Reuters called for earnings per fully diluted share of 65 cents.
Net sales were $319.9 million compared to $319.4 million in the second quarter last year. Housewares sales slipped 0.8% from last year’s second quarter, coming in at $69.6 million, the company acknowledged
Operating income was $24.6 million compared to operating income of $30.4 million in last year’s quarter, while adjusted operating income was $36.4 million versus $39.2 million in the like period an annum earlier, the company maintained.
Julien Mininberg, Helen of Troy CEO said in announcing the financial results, “Our sales and earnings surpassed our revised guidance driven by stronger orders late in the quarter and better gross profit margin in August. Our acquisition of Healthy Directions contributed positively as planned. During the quarter, we made progress on our strategies that focus on product innovation, increased collaboration across our businesses and brands, and improved efficiency in many aspects of our organization. As an example, we have added new leadership in our global shared services who are spearheading the transformation of our distribution and sourcing operations. Executing our key strategies combined with our strong balance sheet allows us to invest in organic growth, improve our business and operations, while evaluating compelling acquisitions and repurchasing our common shares. This is positioning us to achieve our long-term goal of delivering consistent sales growth at increasing rates of profitability.”
On June 11, the company pointed out, Helen of Troy entered into a definitive purchase agreement to acquire Healthy Directions, LLC, a producer of doctor-branded vitamins, minerals and supplements. In other developments, Helen of Troy noted that it had signed a strategic licensing agreement with The Cookware Co. that will enable HOT’s new partner to develop cookware under the OXO Good Grips brand.