Helen Of Troy (HELE) Q3 Earnings & Sales Rise Y/Y, Stock Up
Zacks Investment Research | Jan 08, 2020 09:00PM ET
Helen of Troy Limited (NYSE:EL) released third-quarter fiscal 2020 results, wherein the top and the bottom line increased year over year. Sturdy performance in the Housewares and Beauty segments boosted results. Moreover, management raised sales and adjusted earnings guidance for fiscal 2020.
The solid results and outlook were clearly a treat for investors. Markedly, this Zacks Rank #1 (Strong Buy) stock gained 6.2% during the after-market trading session on Jan 8.
Results in Detail
Adjusted earnings from continuing operations improved 30% year over year to $3.12 per share. Higher operating income in the Housewares segment and lower advertising expenses were primary drivers.
Net sales rose 10.1% year over year to $474.7 million. The upside was driven by a 10.7% rise in the core business, nearly 30% increase in online sales and 10.6% growth in Leadership brands.
Notably, core business growth was supported by improved brick and mortar sales in the Housewares unit, solid consolidated online sales and strong appliance sales in the Beauty division. These were offset by softness in Health & Home segment sales and sluggishness in the personal care business in the Beauty segment. Additionally, unfavorable currency movements were a hindrance to the tune of about $2.3 million.
Consolidated gross margin improved 2 percentage points to 44.2%, courtesy of higher mix of Housewares sales as well as favorable product and channel mix in the Housewares segment. This was partly countered by a smaller mix of personal care sales in the Beauty segment.
Adjusted operating income improved 27.8% to $90.3 million and adjusted operating margin rose 2.6 percentage points to 19%.
Helen of Troy Limited Price, Consensus and EPS Surprise
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