Helen of Troy (NASDAQ:HELE) has reported declines in second-quarter revenue and earnings as it adjusted to inflationary pressures, shifting buying patterns, and reduced consumer demand.
Despite beating analysts’ even gloomier forecasts for the quarter, the company’s shares retreated 8.4% to $104.10 in early morning trading on Wednesday.
The consumer products company, whose brands include Vicks, Braun, Hydro Flask, and Osprey posted sales of $491.6 million for the quarter ended 31 August, 2023, down 5.7% but slightly better than the company’s own forecast and ahead of the $485.5 million consensus expectation of analysts surveyed by Zacks Investment Research.
Adjusted earnings per share (EPS) fell 23% to $1.74, beating the average estimate of $1.60 according to Zacks.
“During the quarter we delivered net sales and adjusted EPS at the high end of our expectations,” CEO Julien Mininberg commented.
“I’m pleased with the consistency of our results as we work toward returning to growth."
The company said initiatives to streamline inventory and improve free cash flow continue to deliver results, with inventory down over $200 million in the first half of this fiscal year versus the same period last year, and free cash flow improvement of $325 million during that same comparison period.
Additionally, it noted that all workstreams of its ‘Project Pegasus’ restructuring initiatives are making good progress, keeping it on track to deliver its financial goals.
The company has maintained its full-year net sales guidance at $1.965 billion to $2.015 billion, with adjusted diluted EPS of $8.50 to $9.00.
Contact the author at stephen.gunnion@proactiveinvestors.com