NASDAQ$HELE

Helen of Troy Limited · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Helen of Troy experienced a decline in consolidated net sales but performed stronger than expected.

Helen of Troy reported a 6.1% decrease in consolidated net sales to $508.1 million and a GAAP diluted EPS of $1.02. Core adjusted diluted EPS was $2.41, a 27.2% decrease from the previous year. The company has updated its fiscal 2023 net sales and diluted EPS outlook, expecting consolidated net sales to be $2.150-$2.200 billion and consolidated diluted EPS to be $6.51-$7.11.

  • Consolidated net sales decreased by 6.1% compared to fiscal 2022, but increased by 35.0% compared to fiscal 2020.
  • Core business net sales decreased by 2.5% from fiscal 2022, but increased by 43.7% from fiscal 2020.
  • GAAP diluted EPS was $1.02, compared to $2.31 for the same period last year.
  • Core adjusted diluted EPS was $2.41, a decrease of 27.2% from fiscal 2022.

Headline financials

Total Revenue

$508M

Previous: $541M-6.1%
EPS (adj)

$2.41

Previous: $3.48-30.7%
Free Cash Flow

$24.6M

Previous: $57M-56.8%
Net Income

$24.6M

Previous: $57M-56.8%
Operating Income

$33.9M

Previous: $64.8M-47.7%
Gross Profit

$211M

Previous: $221M-4.3%
Cash & Equivalents

$49.3M

Previous: $37.4M+31.8%
Total Assets

$3.14B

Previous: $2.35B+33.9%
Stock-Based Comp

$16.6M

Previous: $14M+18.5%

Revenue & EPS history

Helen of Troy · Revenue · Quarterly

$508M

Q1 2023-6.1%vs Q1 2022
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

The Company now expects consolidated net sales revenue in the range of $2.15 billion to $2.20 billion, which implies a decline of 3.3% to 1.0%, and a Core business decline of 1.8% to growth of 0.5%. The Company now expects consolidated GAAP diluted EPS of $6.51 to $7.11 and consolidated non-GAAP adjusted diluted EPS in the range of $9.85 to $10.35, which implies a decrease in consolidated adjusted diluted EPS in the range of 20.3% to 16.3%, and a decrease in Core adjusted diluted EPS in the range of 19.2% to 15.1%.

Tailwinds

  • Low double-digit growth in the second quarter due to the second quarter of fiscal 2022 having the largest adverse impact from the EPA matter.
  • Approximately flat sales growth in the third quarter.
  • Home & Outdoor net sales growth of 9.0% to 11.0%; including net sales from Osprey of $180 million to $185 million.
  • Health & Wellness net sales decline of 10.0% to 8.0%.
  • Beauty Core business net sales decline of 7.0% to 5.0%; including net sales from Curlsmith of $30 million to $35 million.

Headwinds

  • A low double-digit sales decline in the fourth quarter due to the high base of the fourth quarter of fiscal 2022, which includes approximately two months of sales from the Osprey acquisition.
  • A mid-teen decline in the second quarter primarily due to lower adjusted operating margin and higher interest expense.
  • A low double-digit decline in the third quarter primarily due to higher interest expense and a higher adjusted effective tax rate.
  • A mid-single digit decline in the fourth quarter primarily due to lower net sales, higher interest expense, and a higher adjusted effective tax rate.
  • Updated fiscal year net sales outlook reflects expectations by segment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-1.5%

Avg return

30 days after

37%

24 / 65 earnings

Positive

+25.6%

Q4 2019

Best reaction

-30.6%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+20.5%+18.6%+29.8%
Q3 2026-2.4%-11.4%-11.0%
Q2 2026-24.6%-24.9%-29.7%
Q1 2026-7.6%+1.1%+8.6%
Q4 2025-12.0%-16.7%-23.1%
Q3 2025+4.5%+3.3%-5.0%
Q2 2025+16.0%+9.8%+0.2%
Q1 2025-30.6%-28.0%-38.2%
Q4 2024-9.4%-7.9%+4.5%
Q3 2024+8.0%+4.7%-2.1%
Q2 2024-5.7%-4.9%-9.7%
Q1 2024+15.1%+14.1%+19.6%
Q4 2023+17.8%-1.4%+11.6%
Q3 2023-1.4%-1.0%+6.4%
Q2 2023+1.8%-1.9%-13.7%
Q1 2023-9.6%-19.7%-23.5%
Q4 2022+6.0%-0.7%-11.4%
Q3 2022-3.5%-5.1%-15.3%
Q2 2022+3.8%+1.3%+8.1%
Q1 2022-7.4%-10.0%-2.6%
Q4 2021-5.5%-2.8%-5.9%
Q3 2021-6.3%-5.6%+0.4%
Q2 2021-3.4%-1.6%+1.5%
Q1 2021+3.8%+4.7%+3.2%
Q4 2020+7.5%+11.1%+20.1%
Q3 2020+3.7%+0.7%+5.7%
Q2 2020-5.9%-2.7%-3.8%
Q1 2020+10.4%+11.1%+11.9%
Q4 2019+25.6%+22.2%+16.2%
Q3 2019-15.9%-14.5%-13.4%
Q2 2019-2.7%-3.1%+9.5%
Q1 2019+14.9%+12.8%+10.5%
Q4 2018+5.6%+6.0%+6.9%
Q3 2018+0.0%+1.4%-6.5%
Q2 2018-11.0%-8.4%-11.0%
Q1 2018-5.3%-1.1%+6.4%
Q4 2017-3.0%-3.4%-7.2%
Q3 2017+9.6%+6.6%+6.2%
Q2 2017-6.7%-7.2%-7.6%
Q1 2017-3.8%-2.4%-6.3%
Q4 2016-2.8%
Q3 2016-0.9%
Q2 2016+6.9%
Q1 2016-11.3%
Q4 2015+11.6%
Q3 2015+15.3%
Q2 2015-0.1%
Q1 2015-3.0%
Q4 2014-4.8%
Q3 2014+10.9%
Q2 2014+2.8%
Q1 2014+4.7%
Q4 2013-2.3%
Q3 2013+7.8%
Q2 2013-10.1%
Q1 2012-7.6%
Q1 2013-7.6%
Q4 2010-1.6%
Q1 2011-1.6%
Q4 2012-1.6%
Q3 2011-1.5%
Q3 2012-1.5%
Q2 2012-1.0%
Q2 2011-1.0%
Q4 2011-1.0%

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