Factors Likely To Impact Helen Of Troy's (HELE) Q1 Earnings
Zacks Investment Research | Jul 03, 2019 08:04AM ET
Helen of Troy Limited (NYSE:EL) is slated to release first-quarter fiscal 2020 results on Jul 9. The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 15.9%. Let’s see how things are placed ahead of the release for this renowned beauty products as well as other personal and home care products player.
Aspects Likely to Impact Q1
Helen of Troy’s Leadership Brands are yielding and likely to remain an upside in the first quarter. In this context, brands like OXO, Honeywell (NYSE:HON), Braun, PUR, Hydro Flask, Vicks and Hot Tools are well positioned to enhance market share. Notably, management is on track with investments toward product launches and marketing efforts for Leadership Brands that are likely to boost prospects. Moreover, the company is steadily gaining from growth in online sales and digital marketing efforts. Also, the company’s efforts to streamline supply chain network and boost capabilities of the Beauty and Nutritional Supplements units are encouraging.
In spite of these positive factors, Helen of Troy’s performance is exposed to certain headwinds. The company is under pressure from escalated costs stemming from higher tariffs, advertising, freight and transportation. Persistent rise in costs is a threat to the company’s bottom line in the quarter to be reported.
Further, management expects adjusted earnings per share to decline in the range of 4-8% in the first half of fiscal 2020. In fact, most of the decline is anticipated to be witnessed in the first quarter, thanks to tough year-over-year comparisons stemming from the cough/cold/flu-related volatility. Additionally, adverse currency fluctuations are likely to weigh on performance in the Beauty and Health & Home categories.
Helen of Troy Limited Price, Consensus and EPS Surprise
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