Fiscal year third quarter sales at Helen of Troy were up 2.4% as strong growth in the company’s housewares division offset declines in its health and home and beauty divisions.
Total sales for the three month period ended November 30, 2018, were $431.1 million compared to sales of $420.9 million in the third quarter of the comparable year. Net income for the quarter was $49.5 million, up from a net loss of $30.4 million in the comparable quarter the prior year.
By division, housewares sales in the quarter were up 11.4%, while sales were down 0.7% in health and home and down 3% in beauty.
“Net sales in our housewares segment grew double digits, propelled by point of sale growth, incremental domestic distribution, higher online sales, and incremental sales from new product introductions,” said Julien Mininberg, Helen of Troy CEO. “Our health and home segment faced a tough comparison to the strong third quarter of last fiscal year, compounded by a slowdown in China e-commerce and foreign exchange headwinds. Our beauty segment continues to focus on appliances, which benefited from new product introductions and online growth.”
Mininberg also noted that the company’s total online sales increased 6%, with online now representing 18% of its total net sales for the quarter.
He noted that the company has also started to feel the impact of tariffs and that retailers are beginning to “digest higher prices” that could affect short-term shipments and consumption.
Looking ahead to the company’s fiscal year 2020, Mininberg said the company is focused on the second phase of Helen of Troy’s transformation. That includes further improvements to its current businesses, the company’s geographic footprint, global shared services, and the overall strength of the organization.
“We will also seek to add to our leadership brand portfolio through acquisition,” he said.