NASDAQ$HELE

Helen of Troy Limited · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported strong sales growth and adjusted EPS increase, but experienced GAAP loss due to impairment charges.

Helen of Troy reported a 14.9% increase in consolidated net sales revenue, driven by growth in Leadership Brands and online channels. However, the company experienced a GAAP operating loss due to non-cash asset impairment charges. Adjusted diluted EPS from continuing operations increased by 3.3% to $1.88.

  • Consolidated net sales revenue increased by 14.9%, with Leadership Brand net sales up 15.7%.
  • Online channel net sales increased by approximately 39%.
  • GAAP operating loss was $2.7 million, including non-cash asset impairment charges of $41.0 million.
  • Non-GAAP adjusted diluted EPS from continuing operations increased by 3.3% to $1.88.

Headline financials

Total Revenue

$442M

Previous: $385M+14.9%
EPS (adj)

$1.88

Previous: $1.82+3.3%
Organic business decline

$13.40

No prior period
Adjusted EBITDA

$58.4M

No prior period
Accounts receivable turnover

67

No prior period
Free Cash Flow

$254M

No prior period
Net Income

-$3.16M

Previous: $37.3M-108.5%
Operating Income

-$2.75M

Previous: $44.1M-106.2%
Gross Profit

$193M

Previous: $158M+22.3%
Cash & Equivalents

$24.5M

Previous: $11.9M+106.1%
Total Assets

$1.9B

Previous: $1.65B+15.4%
Stock-Based Comp

$4.19M

Previous: $5.02M-16.7%

Revenue & EPS history

Helen of Troy · Revenue · Quarterly

$442M

Q4 2020+14.9%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

Due to the evolving COVID-19 pandemic and the related business uncertainty, the Company is not providing an Outlook for fiscal 2021 at this time.

Tailwinds

  • A graduated salary reduction for all associates, including named executive officers and the other members of the Company’s executive leadership team
  • A reduction in the cash compensation of the Company's Board of Directors
  • Suspension of merit increases, promotions and new associate hiring until further notice
  • The furlough of associates in specific areas directly tied to sales volume, with assistance to maintain health insurance coverage, as well as a reduction of external temporary labor and reduced work hours
  • Reduction or deferral of marketing expense. The Company will lean into brands with strong current demand and reduce investment in other key brands without sacrificing brand awareness

Headwinds

  • Due to the evolving COVID-19 pandemic and the related business uncertainty, the Company is not providing an Outlook for fiscal 2021 at this time.
  • Temporary closures of, and limited hours of operation and materially lower store traffic at, customer stores.
  • Products that are more discretionary in nature or more dependent on the retail brick and mortar channel are generally experiencing unfavorable demand trends.
  • The Company is also experiencing supply chain disruptions with some third-party manufacturers, which is adversely affecting its ability to meet consumer demand in product categories where it is strong.
  • The Company expects that the net effect of COVID-19 will adversely impact its results for the first quarter of fiscal 2021, as well as the full fiscal 2021, and that impact could be material.

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 Q4 2020

Historical avgQ4 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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