NASDAQ$HELE

Helen of Troy Limited · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported strong Q3 2020 results with sales growth and increased profitability.

Helen of Troy reported a strong third quarter with a 10.1% increase in consolidated net sales and a 30.0% increase in adjusted diluted EPS. The company is raising its sales and adjusted EPS outlook for the fiscal year.

  • Consolidated net sales increased by 10.1%, driven by a 10.7% core business growth.
  • Leadership Brand net sales increased by 10.6%.
  • Online channel net sales increased by approximately 30%.
  • GAAP diluted EPS from continuing operations was $2.71, while non-GAAP adjusted diluted EPS increased by 30.0% to $3.12.

Headline financials

Total Revenue

$475M

Previous: $421M+12.8%
EPS

$2.71

Previous: $2.40+12.9%
Free Cash Flow

$68.7M

Previous: $131M-47.7%
Net Income

$68.7M

Previous: $131M-47.7%
Operating Income

$79.3M

Previous: $61.3M+29.3%
Gross Profit

$210M

Previous: $182M+15.5%
Cash & Equivalents

$19.6M

Previous: $19.1M+2.6%
Total Assets

$1.79B

Previous: $1.73B+3.8%
Stock-Based Comp

$4.76M

Previous: $6.02M-20.9%

Revenue & EPS history

Helen of Troy · Revenue · Quarterly

$475M

Q3 2020+12.8%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

The Company has updated its outlook based on the Company's year-to-date performance and now expects consolidated net sales revenue to be in the range of $1.650 to $1.675 billion and consolidated GAAP diluted EPS from continuing operations of $7.29 to $7.45, and non-GAAP adjusted diluted EPS from continuing operations in the range of $8.90 to $9.10.

Tailwinds

  • Housewares net sales growth of 19% to 21%
  • Beauty net sales growth of 3% to 5%
  • Consolidated sales growth of 5.5% to 7.1%
  • Strong performance year to date
  • Increase in growth investments

Headwinds

  • Health & Home net sales decline of 2% to 4%
  • Expected increase in growth investments
  • Higher expected incentive compensation expense
  • Higher expected freight and distribution costs
  • The likelihood and potential impact of any fiscal 2020 acquisitions and divestitures, future asset impairment charges, future foreign currency fluctuations, further tariff increases or decreases, or future share repurchases are unknown and cannot be reasonably estimated

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 Q3 2020

Historical avgQ3 2020

-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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