NASDAQ$HELE

Helen of Troy Limited · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Helen of Troy experienced a decline in consolidated net sales, core business net sales, and online channel net sales. GAAP diluted EPS and adjusted diluted EPS also decreased. However, the company raised its fiscal 2022 diluted EPS and net sales outlook.

Helen of Troy reported a decrease in consolidated net sales of 10.5% to $475.2 million, a decrease in GAAP diluted EPS to $2.11, and a decrease in adjusted diluted EPS of 29.7% to $2.65. Despite these declines, the company raised its fiscal 2022 diluted EPS and net sales outlook.

  • Consolidated net sales revenue decreased by 10.5% compared to fiscal 2021.
  • GAAP diluted EPS decreased to $2.11, including EPA compliance costs of $0.12 per share.
  • Non-GAAP adjusted diluted EPS decreased by 29.7% to $2.65.
  • The company raised its full fiscal year outlook based on better-than-expected second-quarter results and positive trends in Beauty and Housewares.

Headline financials

Total Revenue

$475M

Previous: $531M-10.5%
EPS (adj)

$2.65

Previous: $3.77-29.7%
Free Cash Flow

$51.3M

Previous: $87.3M-41.2%
Net Income

$51.3M

Previous: $87.3M-41.2%
Operating Income

$67.3M

Previous: $99.3M-32.2%
Gross Profit

$211M

Previous: $230M-8.6%
Cash & Equivalents

$31.8M

Previous: $148M-78.6%
Total Assets

$2.4B

Previous: $2.17B+10.4%
Stock-Based Comp

$7.78M

Previous: $4.62M+68.3%

Revenue & EPS history

Helen of Troy · Revenue · Quarterly

$475M

Q2 2022-10.5%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The company expects consolidated net sales revenue in the range of $2.02 to $2.07 billion, which implies a decline of 3.5% to 1.5%. The company expects consolidated GAAP diluted EPS of $7.88 to $8.31 and consolidated non-GAAP adjusted diluted EPS in the range of $11.26 to $11.56.

Tailwinds

  • Housewares net sales growth of 9.0% to 11.0%.
  • Beauty net sales growth of 7.5% to 9.5%; Beauty Core business net sales growth of 20.0% to 22.0%.
  • The company's Core adjusted diluted EPS expectation implies an increase of 0.2% to 2.9%, which includes 6.8% to 4.1% of unfavorable impact due to the EPA matter, implying expected year-over-year growth of 7.0% not including the impact of the EPA matter.
  • The updated outlook also includes estimated year-over-year inflationary cost pressures of approximately $60 to $65 million, or approximately $2.45 to $2.65 of adjusted diluted EPS, much of which have been mitigated through improved product mix, price increases, forward buying of inventory to delay cost impacts, utilizing previously negotiated shipping contracts at rates below current market prices, and implementing other cost reduction initiatives.
  • The company expects a reported consolidated GAAP effective tax rate range of 13.0% to 14.0%, and a Core GAAP effective tax rate range of 12.7% to 13.8% for the full fiscal year 2022.

Headwinds

  • The Company expects consolidated net sales revenue in the range of $2.02 to $2.07 billion, which implies a decline of 3.5% to 1.5%.
  • The Company expects Core net sales revenue in the range of $1.99 to $2.03 billion, which implies a decline of 1.5% to growth of 0.5%, and includes 4.9% to 3.7% of unfavorable impact related to the EPA matter.
  • Health & Home net sales decline of 20.0% to 18.0%, including 11.2% to 8.4% of decline related to the EPA matter.
  • The Company expects consolidated GAAP diluted EPS of $7.88 to $8.31 and Core diluted EPS of $7.68 to $8.11.
  • The Company expects a consolidated adjusted effective tax rate range of 10.6% to 11.6% and a Core adjusted effective tax rate range of 10.4% to 11.4%.

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 Q2 2022

Historical avgQ2 2022

-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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