Helen of Troy reaffirms FY24 non-GAAP EPS view $8.50-$9.00, consensus $8.91

FY24 non- GAAP EPS view implies an adjusted diluted EPS decline of 10.1%-4.8%. This continues to reflect additional year-over-year expense from the restoration of annual incentive compensation expense to target levels, as well as higher interest and depreciation expense, totaling approximately $1.77, net of tax. Reaffirms FY24 revenue view $1.965B-$2.015B, consensus $2B. FY24 revenue view which implies a decline of 5.2%-2.8% from last yeasr. This continues to include a year-over-year decline of $35M, or 1.7%, from the removal of Bed, Bath & Beyond revenue from the outlook, and a similar sized reduction from the Pegasus SKU rationalization initiative. The Company’s sales outlook reflects what it believes will be a continued slower economy and further pressure and uncertainty on consumer spending levels and patterns, especially for some discretionary categories. As expected, the Company continues to see retailers align their inventory purchases to match their current expectations of consumer spending. The Company has seen some reduction of trade inventory on a sequential basis as many key retailers have lowered their inventory on hand and continues to expect that sell-in will more closely match sell-through in FY24. The Company expects consolidated adjusted EBITDA of $338M-$348M, which implies growth of 3.2%-6.3%. Sees FY24 free cash flow $250M-$270M. The Company’s net leverage ratio, as defined in its credit agreement, is expected to end FY24 at 2.0x to 1.85x.