NASDAQ$HELE

Helen of Troy Limited · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a consolidated net sales decline of 2.0% and core adjusted diluted EPS growth of 3.0%.

Helen of Troy Limited reported its Q3 Fiscal 2022 results, with consolidated net sales declining by 2.0% but core business net sales increasing by 0.4%. GAAP diluted EPS was $3.10, while core adjusted diluted EPS grew by 3.0% to $3.72. The company raised its fiscal 2022 diluted EPS and net sales outlook.

  • Consolidated net sales decreased by 2.0%, while core business net sales increased by 0.4%.
  • GAAP diluted EPS was $3.10, and core adjusted diluted EPS increased by 3.0% to $3.72.
  • The company raised its fiscal 2022 diluted EPS and net sales outlook.
  • Strong consumer and retailer demand drove sales for Housewares and Beauty.

Headline financials

Total Revenue

$625M

Previous: $638M-2.0%
EPS (adj)

$3.72

Previous: $3.76-1.1%
Free Cash Flow

$75.7M

Previous: $84.2M-10.1%
Net Income

$75.7M

Previous: $84.2M-10.1%
Operating Income

$90M

Previous: $101M-10.6%
Gross Profit

$274M

Previous: $287M-4.7%
Cash & Equivalents

$44.3M

Previous: $157M-71.7%
Total Assets

$2.49B

Previous: $2.31B+7.6%
Stock-Based Comp

$6.55M

Previous: $6.74M-2.8%

Revenue & EPS history

Helen of Troy · Revenue · Quarterly

$625M

Q3 2022-2%vs Q3 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The Company expects consolidated net sales revenue in the range of $2.10 to $2.12 billion, which implies growth of flat to 1.0%. The Company expects Core net sales revenue in the range of $2.06 to $2.08 billion, which implies growth of 2.0% to 3.0%, and includes a 3.0% unfavorable impact related to the EPA matter.

Tailwinds

  • Housewares net sales growth of 15.0% to 16.0%
  • Beauty net sales growth of 13.0% to 14.0%, Beauty Core business net sales growth of 26.0% to 27.0%.
  • The Company expects consolidated GAAP diluted EPS of $8.25 to $8.59 and Core diluted EPS of $8.08 to $8.42.
  • The Company expects consolidated non-GAAP adjusted diluted EPS in the range of $11.73 to $11.93 and Core adjusted diluted EPS in the range of $11.55 to $11.75.

Headwinds

  • Health & Home net sales decline of 20.0% to 19.0%, including 6.7% of decline related to the EPA matter.
  • The assumption that the severity of the cough/cold/flu season will be below pre-COVID historical averages.
  • Due primarily to the strong growth comparison and COVID-related events in the fourth quarter of fiscal 2021 and the accelerated orders by retailers in the third quarter of fiscal 2022 to avoid supply chain disruptions during the holiday season, the Company does not expect Core business net sales growth in the fourth quarter of fiscal 2022.
  • 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 12.8% to 13.8% for the full fiscal year 2022.

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 2022

Historical avgQ3 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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