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Helen of Troy Limited (NASDAQ:HELE) rallied more than 16% after reporting earnings that beat estimates.
The consumer company reported non-GAAP fiscal Q1 earnings per share of $1.94 beat by $0.26 and revenue of $474.67M was better by $9.31M. Gross margin of 45.4% was up from 41.6% a year earlier, and compared to the 44.2% estimate.
The company said in an earnings call that home and outdoor led the way with 21% growth in the quarter, with particularly healthy sales for Hydro Flask as consumers return to the post-COVID world.
HELE’s fiscal year outlook includes expected consolidated net sales revenue in the range of $1.965B to $2.015B, implying a decline of 5.2% to 2.8% as a result of slowing demand.
“We believe it is important to note that even with these headwinds included, we expect strong organic sales growth in fiscal ’23 versus the pre-COVID base of fiscal 2020,” Chief Executive Officer Julien Mininberg said in an earnings call. “Our outlook also includes our plans to protect our market shares as consumers feel the pinch of higher inflation.”
Regarding Bed, Bath & Beyond’s recent bankruptcy and subsequent sale, Mininberg noted the company has been focused on finding new distribution channels for its OXO brand, which was historically very prominent at the retailer.
