NASDAQ$HELE

Helen of Troy Limited · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Helen of Troy reported a decrease in consolidated net sales but an expansion in GAAP operating margin.

Helen of Troy reported a slight decrease in consolidated net sales revenue of 1.6% to $549.6 million. However, the company saw improvements in gross profit margin and operating margin, alongside a GAAP diluted EPS of $3.19 and adjusted diluted EPS of $2.79. The company is narrowing its full year outlook for net sales and GAAP diluted EPS, while lowering adjusted EBITDA and maintaining free cash flow and net leverage ratio reduction.

  • Consolidated net sales revenue decreased by 1.6% to $549.6 million.
  • GAAP diluted EPS increased to $3.19, while adjusted diluted EPS rose to $2.79.
  • Gross profit margin improved by 210 basis points to 48.0%.
  • The company is on track with Project Pegasus to deliver $20 million in fiscal 2024 savings.

Headline financials

Total Revenue

$549M

Previous: $559M-1.8%
EPS (adj)

$2.79

Previous: $2.75+1.5%
Capital Expenditures

-$9.12M

No prior period
Free Cash Flow

$75.9M

Previous: $51.8M+46.4%
Net Income

$75.9M

Previous: $51.8M+46.4%
Operating Income

$107M

Previous: $77.2M+38.5%
Gross Profit

$264M

Previous: $257M+2.8%
Cash & Equivalents

$25.2M

Previous: $45.3M-44.3%
Total Assets

$2.95B

Previous: $3.13B-5.7%
Stock-Based Comp

$8.58M

Previous: $7.94M+8.0%

Revenue & EPS history

Helen of Troy · Revenue · Quarterly

$549M

Q3 2024-1.8%vs Q3 2023
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

The company expects consolidated net sales revenue in the range of $1.975 billion to $2.0 billion. GAAP diluted EPS is expected to be $6.67 to $7.05, and non-GAAP adjusted diluted EPS in the range of $8.60 to $8.85. Consolidated adjusted EBITDA is expected to be $330 million to $335 million. Free cash flow is expected to be $250 million to $270 million and its net leverage ratio to end fiscal 2024 at 2.0x to 1.85x.

Tailwinds

  • The company anticipates that sell-in will more closely match sell-through during the remainder of fiscal 2024.
  • The company expects free cash flow in the range of $250 million to $270 million.
  • The company expects its net leverage ratio to end fiscal 2024 at 2.0x to 1.85x.
  • Project Pegasus is on track to deliver $20 million fiscal 2024 savings target.
  • Retail inventory on hand is at healthy levels.

Headwinds

  • The company expects a decline of 4.7% to 3.5% in consolidated net sales revenue.
  • The company expects a decline of 9.0% to 6.3% in adjusted EPS.
  • The company expects slower consumer demand in some discretionary categories.
  • The company expects lower illness incidence than pre-COVID historical averages.
  • The company expects softer-than-expected holiday sales.

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 2024

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro