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HELE Nasdaq· Helen of Troy Ltd.
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HELE Nasdaq· Helen of Troy Ltd.
Earnings report Q4 2023

HELEN OF TROY LIMITED Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, HELEN OF TROY LIMITED reported total sales revenue of $549.6 million. The company's revenue is divided into two segments: Home & Outdoor and Beauty & Wellness. The Home & Outdoor segment generated sales revenue of $235.9 million, while the Beauty & Wellness segment contributed $313.7 million to the total revenue.

Strengths

HELEN OF TROY LIMITED demonstrated strong revenue growth in the latest quarter. The company's total sales revenue increased by 1.6% compared to the same quarter last year. The Beauty & Wellness segment showed significant improvement, with a revenue increase of 5.1% year-over-year. This growth can be attributed to various factors, including a gain on the sale of distribution and office facilities, lower freight costs, decreased restructuring charges, lower commodity costs, and a more favorable customer mix. These factors contributed to a 7.5 percentage point increase in the operating margin of the Home & Outdoor segment.

Challenges

Despite the overall revenue growth, the company faced some challenges in the latest quarter. The Home & Outdoor segment experienced higher distribution expenses, increased marketing expenses, and an increase in inventory obsolescence expense. Additionally, there was an increase in share-based compensation expense and annual incentive compensation expense.

Noteworthy

It is worth noting that HELEN OF TROY LIMITED reported a gain of $16.2 million from the sale of its distribution and office facilities in El Paso, Texas. This gain positively impacted the operating income of the Home & Outdoor segment. Furthermore, the company experienced a decrease in restructuring charges, which contributed to the improvement in operating margin.

Summary

HELEN OF TROY LIMITED delivered a strong performance in the latest quarter, with an increase in total sales revenue. The Beauty & Wellness segment showed significant growth, driven by various factors such as the gain from the sale of facilities, lower costs, and a favorable customer mix. However, the company faced challenges in the Home & Outdoor segment, including higher distribution and marketing expenses. Overall, HELEN OF TROY LIMITED's revenue growth reflects its ability to capitalize on market opportunities and effectively manage its operations.

Source documents

Form 10-Q  filed on Jan 08, 2024
115 pages scanned

Reference data

Company financials Q4 revenue 489M
Analyst estimates Q4 EPS missed by -100.00%
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