Second quarter consolidated revenue at Helen of Troy increased 5.2% as revenue growth in the company’s Housewares division and Beauty division offset a decline in the Health & Home division.
Company-wide, revenue for the three months ended August 31 were $414 million, up from revenue of $393.5 million in the comparable quarter the previous year.
Net income in the quarter was $46.1 million, or $1.83 per diluted share, up from net income of $44 million, or $1.66 per diluted share, in the second quarter of 2018.
“Consolidated sales growth was led by our housewares segment as we expanded distribution and introduced new products that resonated well with both customers and consumers,” said Julien Mininberg, Helen of Troy CEO. “Our beauty segment continued to grow, driven by strong demand in the appliance category. Our health and home segment faced a particularly difficult comparison to the high base that included strong sales of seasonal products, distribution gains and significant international growth in the same period last year.”
Quarterly sales in the Housewares segment were up 22.1%, Beauty segment sales were up 8.8% while sales in Health & Home were down 9.7%.
Mininberg said that based on this performance and the company’s expectations for the remainder of the fiscal year, Helen of Troy is raising its net sales and adjusted diluted EPS outlook for the full fiscal year 2020.
For fiscal 2020, the company now expects consolidated net sales revenue to be in the range of $1.610 billion to $1.640 billion, which would equal to consolidated sales growth of 2.9% to 4.8% compared to the prior expectation of 1.7% to 3.6%.
By segment, the updated outlook includes:
- Housewares net sales growth of 13% to 15%, compared to the prior expectation of 6% to 8%.
- Health & Home net sales decline in the low-single digits, compared to the prior expectation of net sales growth of 2% to 3%
- Beauty net sales growth in the low-single digits, compared to the prior expectation of a net sales decline in the low-single digits.
The company now expects consolidated GAAP diluted EPS from continuing operations of $6.84 to $7.04, and non-GAAP adjusted diluted EPS from continuing operations in the range of $8.50 to $8.75, which excludes any asset impairment charges, restructuring charges, share-based compensation expense and intangible asset amortization expense.