Helen Of Troy Q2 Earnings Smashes Estimates, Raises FY22 Outlook

Helen Of Troy Limited HELE reported a second-quarter FY22 sales decline of 10.5% year-on-year, to $475.23 million, beating the analyst consensus estimate of $428.16 million.
Core business net sales declined 7.9% Y/Y and increased 20.6% compared to Q2 FY20.
Leadership Brand sales fell 8.7% Y/Y and rose 18.9% against Q2 FY20.
Online channel sales decreased 17.5% and increased 8.5% from Q2 FY20.
Housewares sales rose 6.6% Y/Y, Health & Home decreased 33.1%, and Beauty sales climbed 0.8%.
The gross profit margin increased 90 basis points to 44.3%. The operating margin contracted 450 basis points to 14.2%, and operating income for the quarter declined 32% to $67.3 million.
The company held $31.8 million in cash and equivalents as of August 31, 2021. Net cash used by operating activities for the six months was $58.3 million. Inventory was $606.7 million.
Adjusted EPS of $2.65 beat the analyst consensus of $2.17.
Outlook: Helen Of Troy expects FY22 consolidated net sales of $2.024 billion - $2.067 billion (prior view $1.93 billion - $1.98 billion); Core Net Sales to $1.990 billion -$2.032 billion (prior $1.9 billion - $1.95 billion) versus the consensus of $2 billion.
The company expects consolidated non-GAAP adjusted EPS of $11.26 - $11.56 (prior view $10.46 - $10.97) and Core adjusted EPS of $11.05 - $11.35 (prior $10.25 - $10.75), versus the consensus of $10.86.
Price action: HELE shares closed lower by 0.75% at $218.04 on Wednesday.

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