Helen of Troy (HELE) delivered Fiscal Q2 results for the period ended August 31, 2021, reflecting a year-over-year decline in net sales and earnings. The company has also raised its Fiscal 2022 diluted earnings per share and net sales outlook. HELE shares rose 5.88% to close at $230.87 on October 7.
Fiscal Q2 consolidated net sales were down 10.5% year-over-year to $475.2 million. The decline was attributed to a 10.9% decline in Organic business due to a decrease in sales in the Health & Home segment. (See Top Smart Score Stocks on TipRanks)
Adjusted diluted earnings declined 29.7% year-over-year to $2.65 per share. The decline was due to a 32.8% decline in adjusted income to $31.5 million.
According to CEO Julien R. Mininberg, Q2 results exceeded expectations as the diversified portfolio delivered on expectations. The Housewares and Beauty segments also topped last year’s performance with strong sales growth.
For the full year, Helen of Troy is projecting consolidated sales of between $2.02 billion and $2.07 billion, implying a 3.5% to 1.5% year-over-year decline. On the other hand, core net sales are expected to range between $1.99 and $2.03 billion.
Consolidated full-year adjusted diluted EPS is expected to range between $11.26 and $11.56, while core adjusted diluted EPS is expected at between $11.05 and $11.35.
During the quarter, Helen of Troy resolved an Environmental Protection Agency issue regarding the compliance of packaging claims with modest changes to product labeling.
In July, Oppenheimer analyst Rupesh Parikh reiterated a Hold rating on the stock. According to the analyst, range-bound trading should be expected in the near term driven by difficult comparisons and uncertainty on the EPA resolution front.
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