Helen of Troy (HELE) beats Q3 earnings but expects decline for FY25

From Zacks Investment Research: 2025-01-09 10:30:28

Helen of Troy Limited (HELE) reported third-quarter fiscal 2025 results, beating both top and bottom line estimates despite a year-over-year decline. The company saw growth in Home & Outdoor and International markets but faced challenges in the Beauty & Wellness segment. Year-to-date improvements were driven by increased distribution, innovation, and marketing efforts. The company also acquired Olive & June, expected to boost financials. Adjusted earnings per share were $2.67, down 4.3% year over year. Net sales declined to $530.7 million, with gross profit margin expanding. HELE expects consolidated net sales to decline in FY25 and adjusted EPS to decrease.

In segmental performance, Home & Outdoor net sales rose, while Beauty & Wellness net sales declined. The company ended the quarter with cash, cash equivalents, and total debt. HELE anticipates challenges in FY25 due to inflation, consumer spending softness, and operational issues. The company expects a decline in net sales for the Beauty & Wellness segment. Adjusted EPS, EBITDA, and free cash flow guidance for FY25 were revised. Shares of HELE have dropped in the past six months.

Other solid staple bets in the Consumer Staples sector include e.l.f. Beauty, United Natural Foods, and Freshpet, with positive outlooks for sales and earnings growth.



Read more at Zacks Investment Research: HELE Tops Q3 Earnings Estimates, Narrows Sales & Profit Guidance – January 9, 2025