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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.

Challenges

Despite the overall revenue growth, the Home & Outdoor segment experienced a slight decline in revenue, with a decrease of 0.4% compared to the same quarter last year. This decline can be attributed to higher distribution expenses, increased marketing expenses, higher inventory obsolescence expenses, higher share-based compensation expenses, and increased annual incentive compensation expenses.

Noteworthy

HELEN OF TROY LIMITED reported a gain on the sale of distribution and office facilities in El Paso, Texas, which contributed to the increase in operating income for the Home & Outdoor segment. Additionally, the company experienced lower inbound and outbound freight costs, lower commodity costs, and a more favorable customer mix, which positively impacted the operating margin.

Summary

HELEN OF TROY LIMITED delivered a strong performance in the latest quarter, with overall revenue growth driven by the Beauty & Wellness segment. The company's strategic initiatives, such as the sale of distribution and office facilities, cost management, and customer mix optimization, contributed to the positive financial results. However, the Home & Outdoor segment faced challenges due to higher expenses. Overall, HELEN OF TROY LIMITED demonstrated resilience and growth potential in its latest financial quarter.

Source documents

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

Reference data

Company financials Q4 revenue 550M
Analyst estimates Q4 EPS beat by 1.35%
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