Helen of Troy Posts Stronger-than-Anticipated Profits
08 January 2016 - 9:20AM
Dow Jones News
Helen of Troy Corp. posted a better-than-expected profit in its
latest quarter, as the consumer products company saw growth in its
housewares and health divisions.
The maker of Hot Tools hair stylers and Dr. Scholl's backed its
outlook for the year ending in February, despite a slow start to
the cold-and-flu season and foreign exchange pressures.
In all for its fiscal third quarter, Helen of Troy reported a
profit of $46.8 million, or $1.63 a share, down from $55.4 million,
or $1.92 a share, a year earlier.
Excluding certain items, profit was $2.07 a share. Analysts
surveyed by Thomson Reuters had expected $1.93 a share in adjusted
earnings.
Revenue grew 2.3% to $445.5 million, while analysts had forecast
$441 million in revenue.
On a core basis, sales were up 1.6%.
Sales in the company's housewares segment, which includes brands
like OXO and Good Grips, rose 2.1%. Helen of Troy cited the
introduction of kitchen electronics and metal bakeware products for
the growth.
Health and home sales, which include brands like Vicks and
Febreze, rose 5.3%. Nutritional segments, formed from its
acquisition of Healthy Directions, said sales dipped 2.5% as the
company continues to shift from direct mail to online.
Beauty sales ticked down 0.3%, but the company noted it is
seeing a good response to its new products and branding of
appliances.
Founded in 1968 as a wig shop in downtown El Paso, Texas, Helen
of Troy has grown into a personal-care products behemoth, whose
brands also include Revlon and Braun.
One of the original "inverters"—companies that relocate their
headquarters abroad to lower taxes—Helen of Troy reorganized into a
Bermuda-based company in 1993. In response, the U.S. Treasury
adopted in 1996 what became known as the Helen of Troy rule,
requiring shareholders to pay gains on shares converted into stock
in the new company.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
January 07, 2016 17:05 ET (22:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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