NASDAQ$HELE

Helen of Troy Limited · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reports a decrease in consolidated net sales and core adjusted diluted EPS, but exceeded expectations through gross margin and cash flow improvements.

Helen of Troy reported a 10.6% decrease in consolidated net sales and a 26.1% decrease in core adjusted diluted EPS for Q3 2023. However, the company exceeded expectations due to significant improvements in gross margin and cash flow, as well as efforts to reduce inventory levels.

  • Consolidated net sales revenue decreased by 10.6% to $558.6 million.
  • Core business net sales decreased by 10.0%.
  • GAAP diluted EPS was $2.15, compared to $3.10 for the same period last year.
  • Non-GAAP core adjusted diluted EPS was $2.75, a decrease of 26.1% from fiscal 2022.

Headline financials

Total Revenue

$559M

Previous: $625M-10.6%
EPS (adj)

$2.75

Previous: $3.72-26.1%
Adjusted EBITDA

$99.7M

No prior period
Gross profit margin

45.9%

No prior period
Operating margin

13.8%

No prior period
Free Cash Flow

$51.8M

Previous: $75.7M-31.5%
Net Income

$51.8M

Previous: $75.7M-31.5%
Operating Income

$77.2M

Previous: $90M-14.3%
Gross Profit

$257M

Previous: $274M-6.3%
Cash & Equivalents

$45.3M

Previous: $44.3M+2.2%
Total Assets

$3.13B

Previous: $2.49B+25.8%
Stock-Based Comp

$7.94M

Previous: $6.55M+21.3%

Revenue & EPS history

Helen of Troy · Revenue · Quarterly

$559M

Q3 2023-10.6%vs Q3 2022
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

The company updated its fiscal 2023 outlook, expecting consolidated net sales revenue between $2.025 billion and $2.050 billion, and consolidated non-GAAP adjusted diluted EPS between $9.20 and $9.40.

Tailwinds

  • Home & Outdoor net sales growth of 2.5% to 3.5%, including net sales from Osprey of $180 million to $185 million.
  • Severity of the cough/cold/flu season will be higher than pre-COVID historical averages.
  • Estimated net favorable impact to net sales of approximately $10 million and adjusted diluted EPS of approximately $0.10 related to the EPA matter.
  • Adjusted diluted EPS contribution from Osprey of approximately $0.35 to $0.40.
  • Net sales from Curlsmith of $35 million to $40 million, adjusted diluted EPS contribution from Curlsmith of approximately $0.20 to $0.25.

Headwinds

  • Consolidated net sales revenue decline of 8.9% to 7.8%.
  • Core business net sales decline of 7.5% to 6.4%.
  • Health & Wellness net sales decline of 11% to 10%.
  • Beauty Core business net sales decline of 18.5% to 17.5%.
  • Estimated incremental after-tax inflationary cost pressures in the range of $50 million to $55 million, or approximately $2.10 to $2.25 of adjusted diluted EPS.

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 2023

Historical avgQ3 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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