NASDAQ$HELE

Helen of Troy Limited · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Net sales declined, gross profit margin and operating margin improved, and free cash flow increased.

Helen of Troy Limited reported first quarter fiscal 2024 results, with consolidated net sales declining by 6.6%. However, the company saw improvements in gross profit margin and operating margin. Free cash flow also showed a significant increase. The company reiterated its full fiscal year outlook for sales, adjusted EPS, margin expansion, and free cash flow.

  • Consolidated net sales revenue decreased by 6.6% to $474.7 million.
  • Gross profit margin increased by 380 basis points to 45.4%.
  • GAAP diluted EPS was $0.94, compared to $1.02 in the prior year.
  • Free cash flow was $109.2 million, an increase of $223.8 million compared to the same period last year.

Headline financials

Total Revenue

$475M

Previous: $508M-6.6%
EPS (adj)

$1.94

Previous: $2.41-19.5%
Adjusted EBITDA

$72.4M

No prior period
Free Cash Flow

$22.6M

Previous: $24.6M-8.2%
Net Income

$22.6M

Previous: $24.6M-8.2%
Operating Income

$40.6M

Previous: $33.9M+19.7%
Gross Profit

$216M

Previous: $211M+2.1%
Cash & Equivalents

$38.9M

Previous: $49.3M-21.1%
Total Assets

$2.87B

Previous: $3.14B-8.6%
Stock-Based Comp

$9.3M

Previous: $16.6M-44.1%

Revenue & EPS history

Helen of Troy · Revenue · Quarterly

$475M

Q1 2024-6.6%vs Q1 2023
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

The company continues to expect consolidated net sales revenue in the range of $1.965 billion to $2.015 billion and non-GAAP adjusted diluted EPS in the range of $8.50 to $9.00. Free cash flow is expected to be $250 million to $270 million.

Tailwinds

  • Majority of net sales growth to be concentrated in the third quarter of fiscal 2024.
  • Adjusted diluted EPS growth to be concentrated in the third and fourth quarters of fiscal 2024.
  • Benefits of debt deleveraging to be more fully realized in the second half of the year.
  • Lower inbound freight and product costs expected in the second half of the year.
  • Net leverage ratio is expected to end fiscal 2024 at 2.0x to 1.85x.

Headwinds

  • Continued slower economy and uncertainty in spending patterns, especially for some discretionary categories.
  • Year-over-year decline of $35 million from the removal of Bed, Bath & Beyond revenue.
  • Similar sized reduction from the Pegasus SKU rationalization initiative.
  • Decline in net sales of approximately 8% to 6% in the second quarter of fiscal 2024.
  • Decline in adjusted diluted EPS of approximately 20% to 30% in the first half of fiscal 2024.

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 2024

Historical avgQ1 2024

-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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