Important points
- Helen of Troy missed forecasts for quarterly sales and net income due to lower demand for beauty and wellness products.
- The company reported a 3% year-over-year decline in revenue for the third quarter of fiscal 2025.
- Helen of Troy also cut its full-year profit forecast and reduced its sales forecast.
Helen of Troy Limited (HELE) shares rose Wednesday as the maker of home and beauty products reported lower quarterly sales and lowered its full-year profit outlook due to lower demand for beauty and wellness products. As a result, the stock fell by 4%.
The company reported third-quarter fiscal 2025 revenue of $530.7 million, down 3% year over year, compared to analysts surveyed by Visible Alpha who expected $532.7 million. Net income was $49.6 million, also below expectations, but adjusted earnings per share (EPS) was $2.67, above expectations.
Beauty & Wellness sales were down 9% to $284.6 million, with Troy's Helen reporting “lower winter and sick seasons, lower hair equipment sales due to slower consumer demand, increased competition, net This is due to a year-on-year decrease in distribution volume. -2017, and reduced water filtration capacity due to expiration of previously disclosed license agreements and softening of categories. ”
Home and outdoor unit sales increased 4% to $246.1 million, driven by demand for insulated beverage equipment.
Chief Executive Noel Geoffroy said the company “continues to navigate a challenging consumer spending environment.”
Helen of Troy lowers current year EPS outlook, reduces earnings outlook
Helen of Troy lowered its full-year EPS outlook to $4.60 to $5.02 from $4.69 to $5.45 and revised its sales outlook to $1.888 billion to $1.913 billion from $1.885 billion to $1.935 billion. The range has been reduced.
Helen of Troy's stock has lost more than half its value over the past year.
TradingView
