NASDAQ$HELE

Helen of Troy Limited · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Helen of Troy reported Q4 2022 results with net sales growth and core adjusted diluted EPS growth.

Helen of Troy's Q4 2022 results significantly outperformed expectations, with strong growth in each business segment. Consolidated net sales revenue increased by 14.3% to $582.0 million, and core adjusted diluted EPS grew by 76.8% to $2.51. The company also provided a positive outlook for fiscal 2023, expecting continued top and bottom-line growth.

  • Consolidated net sales revenue increased by 14.3% to $582.0 million.
  • Core net sales increased by 17.2% from fiscal 2021.
  • GAAP diluted EPS was $1.64, compared to $0.90 for the same period last year.
  • Non-GAAP Core adjusted diluted EPS increased by 76.8% to $2.51.

Headline financials

Total Revenue

$582M

Previous: $509M+14.3%
EPS (adj)

$2.51

Previous: $1.57+59.9%
Adjusted EBITDA

$78.7M

No prior period
Gross profit margin

42.6%

No prior period
Net Income

$39.8M

Previous: $22.2M+79.5%
Operating Income

$50.4M

Previous: $24.5M+105.4%
Gross Profit

$248M

Previous: $230M+7.7%
Cash & Equivalents

$33.4M

Previous: $45.1M-26.0%
Total Assets

$2.82B

Previous: $2.26B+24.7%
Stock-Based Comp

$6.27M

Previous: $5.76M+8.8%

Revenue & EPS history

Helen of Troy · Revenue · Quarterly

$582M

Q4 2022+14.3%vs Q4 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

The Company expects consolidated net sales revenue in the range of $2.38 billion to $2.42 billion, which implies consolidated growth of 6.8% to 8.8% and Core business growth of 8.5% to 10.5%. The Company expects consolidated GAAP diluted EPS of $9.92 to $10.38 and consolidated non-GAAP adjusted diluted EPS in the range of $12.73 to $13.03, which implies consolidated adjusted diluted EPS growth of 3.0% to 5.4% and Core adjusted diluted EPS growth of 4.5% to 7.0%.

Tailwinds

  • Home & Outdoor net sales growth of 19.0% to 21.0%; including net sales from Osprey of $180 million to $185 million.
  • Beauty Core business net sales growth of 4.5% to 7.5%; including net sales from Curlsmith of $30 million to $35 million
  • Includes adjusted diluted EPS contribution from Osprey of $0.50 to $0.55
  • Includes adjusted diluted EPS contribution from Curlsmith of $0.20 to $0.25
  • The estimated net favorable impact to net sales of approximately $10 million and adjusted diluted EPS of approximately $0.10 related to the EPA matter

Headwinds

  • Health & Wellness net sales decline of 1.0% to growth of 1.0%.
  • April 2022 foreign currency exchange rates will remain constant for the remainder of the fiscal year.
  • An estimated unfavorable impact to net sales of approximately $10 million and adjusted diluted EPS of approximately $0.10 due to not being able to ship certain products on a timely basis related to damage to a third party storage facility caused by a severe weather event in March 2022.
  • Estimated incremental after-tax inflationary cost pressures in the range of $75 million to $80 million, or approximately $3.10 to $3.30 of adjusted diluted EPS
  • Expected interest expense in the range of $35 million to $36 million due to higher average levels of debt due to recent acquisitions and the expectation the Federal Open Market Committee (“FOMC”) will increase interest rates by 225 basis points during calendar 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 Q4 2022

Historical avgQ4 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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