EL PASO, Texas - Helen of Troy Limited (NASDAQ: HELE), a global designer, developer, and marketer of a broad range of branded consumer products, reported financial results for the fourth quarter ended February 29, 2024. Despite the positive earnings report, the company's stock experienced a modest decline of 0.58%, indicating a tempered market reaction.
The company announced an adjusted EPS of $2.45, surpassing the analyst estimate of $2.30. Revenue for the quarter was $489.2 million, exceeding the consensus estimate of $477.52 million and marking a 1.0% increase from the same quarter last year.
The company experienced a net sales revenue growth of 1.0% YoY, driven primarily by Organic business growth in its consolidated online channel led by travel tumblers in Home & Outdoor and hair appliances in Beauty & Wellness. These gains were partially offset by declines in air purifiers, fans, and heaters, reflecting SKU rationalization and softer consumer demand, as well as a decline in humidification due to a below-average cough/cold/flu season.
Helen of Troy's gross profit margin saw a significant improvement, rising 570 basis points to 49.0% compared to 43.3% in the previous year. This increase was largely attributed to a decrease in inventory obsolescence expense, lower inbound freight and commodity costs, reduced customer discount and program expense, and a more favorable product mix within Beauty & Wellness.
For FY2025, Helen of Troy anticipates adjusted diluted EPS to be in the range of $8.70-$9.20, which is in line with the analyst consensus of $8.75.
Noel M. Geoffroy, Chief Executive Officer, commented on the results, "We ended the year on a positive note, reporting fourth quarter results that exceeded our expectations while making critical progress toward our long-term growth and efficiency goals." Geoffroy also expressed confidence in the company's "Elevate for Growth" strategy, emphasizing a consumer-centric approach and resource allocation to drive future objectives.
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