Core Insights - Helen of Troy Limited (HELE) is strategically focused on its Leadership Brands, investing in innovation and distribution channels while facing economic pressures such as inflation and reduced consumer spending [1][8] Group 1: Leadership Brands and Sales Performance - The company benefits from a solid Leadership Brand portfolio, with fourth-quarter fiscal 2024 sales increasing by 1% to $418.9 million, driven by brands like OXO, Hydro Flask, and Braun [2] - Continuous investments in productive brands are expected to yield robust results for the company [2] Group 2: Strategic Initiatives - In October 2023, the company launched a six-year strategic plan called Elevate for Growth, focusing on innovative portfolio management and exploring new distribution avenues [4] - Management aims to enhance brand equity and grow international business, leveraging a new distribution center in Tennessee for improved scale and service capabilities [5] Group 3: Project Pegasus - Project Pegasus is a global restructuring plan aimed at expanding operating margins through efficiency improvements and cost reductions [6] - The project includes optimizing the brand portfolio, streamlining the organization, and enhancing supply-chain efficiency [6] Group 4: Challenges in Beauty & Wellness Division - The Beauty & Wellness division is experiencing a decline, with fourth-quarter fiscal 2024 net sales down 2.5% to $265.9 million, attributed to weaker consumer demand and a drop in humidification sales [7] - For fiscal 2025, net sales in this segment are projected to decline by 1.5% to 4.5% [7] Group 5: Financial Outlook - The company expects consolidated net sales for fiscal 2025 to range from $1.965 billion to $2.025 billion, indicating a potential decline of 2% to growth of 1% [9] - Adjusted earnings per share (EPS) are forecasted between $8.70 and $9.20, with adjusted EBITDA projected to range from $324 million to $331 million, reflecting a decrease of 3.6% to 1.6% [9] Group 6: Short-term Projections - In the first quarter of fiscal 2025, the company anticipates a sales decline of 5% to 7%, with a projected drop in adjusted EPS of 15% to 20% [10] - The company's shares have declined by 10.5% over the past three months, compared to a 9.6% decline in the industry [10]

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metr ...

Helen of Troy Limited (HELE) posted impressive fourth-quarter fiscal 2024 results, wherein the top and bottom lines beat the Zacks Consensus Estimate and increased year over year. The company remains committed to prioritizing consumers by continuously delivering quality brands and products that are well-messaged and appropriately placed."Elevate for Growth" signifies a transformative strategy for the company, prioritizing innovative portfolio management, incremental investment in brands and capabilities, an ...

Helen of Troy (HELE) reported $489.2 million in revenue for the quarter ended February 2024, representing a year-over-year increase of 1%. EPS of $2.45 for the same period compares to $2.01 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $477.88 million, representing a surprise of +2.37%. The company delivered an EPS surprise of +6.06%, with the consensus EPS estimate being $2.31.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 29, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-14669 HELEN OF TROY LIMITED (Exact name of registrant as specified in its charter) (State or other jurisdiction (I.R.S. Employer of incorporation or organizatio ...

Exhibit 99.1 Helen of Troy Limited Reports Solid Fourth Quarter Fiscal 2024 Results Consolidated Net Sales Growth of 1.0% GAAP Diluted EPS Growth of 19.3% to $1.79; Adjusted Diluted EPS Growth of 21.9% to $2.45 GAAP Operating Margin Expansion of 240 Basis Points Adjusted EBITDA Margin Expansion of 410 Basis Points; Growth of 28.4% to $94.3 million Initiates Fiscal 2025 Outlook: Consolidated Net Sales of $1.965-$2.025 Billion GAAP Diluted EPS of $6.68-$7.45; Adjusted Diluted EPS of $8.70-$9.20 Adjusted EBITD ...

Helen of Troy Limited (HELE) is likely to register a top-line decline when it reports fourth-quarter fiscal 2024 earnings on Apr 24. The Zacks Consensus Estimate for net sales is pegged at $477.9 million, suggesting a drop of 1.4% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2024 net sales is pegged at almost $2 billion, suggesting a drop of 3.8% from the year-ago period’s reported figure.Nevertheless, the company’s bottom line is likely to increase year over year. The consen ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __ to __ Commission File Number: 001-14669 HELEN OF TROY LIMITED (Exact name of registrant as specified in its charter) (State or other j ...

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 5.7% compared to a growth of 9.7% in the same period last year, with a decline of 3.4% on a two-year stack [87] - Net income was $27.4 million, or $1.14 per diluted share, while non-GAAP adjusted diluted EPS decreased by 23.3% to $1.74 per share [40] - Gross profit margin improved by 420 basis points to 46.7% compared to 42.5% in the same period last year [66] - Adjusted operating margin declined by 120 basis points to 12.7% [39] Business Line Data and Key Metrics Changes - Home & Outdoor adjusted operating margin decreased by 180 basis points to 17.7% [88] - Beauty and Wellness segment net sales declined by 10.4%, primarily due to SKU rationalization and softness in humidification, heaters, and fans [33] - Osprey brand achieved strong growth fueled by accelerated travel demand and improved inventory position [32] Market Data and Key Metrics Changes - International sales growth was driven by Braun and Osprey, with strong performance in the UK and Germany [63] - The company expects a decline in net sales of approximately 4% to 2% in the third quarter, with growth concentrated in the fourth quarter [91] Company Strategy and Development Direction - The company is focused on executing the Pegasus restructuring initiatives to improve efficiency and effectiveness [57] - Plans to geographically consolidate the U.S. Beauty business to enhance collaboration and innovation [57] - The upcoming Investor Day on October 17th will outline the next strategic plan and long-term targets [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to net sales and adjusted EPS growth in the fourth quarter despite a challenging macro environment [53] - The company anticipates cautious retail ordering patterns in the third quarter, with a more normalized ordering in the fourth quarter [41] - Management noted that consumer spending is shifting towards experiences rather than discretionary products due to inflation [52] Other Important Information - The company closed on the sale of its El Paso distribution facility for total proceeds of $51 million, with a gain of approximately $34 million expected to be recognized in the third quarter [89] - The company continues to expect capital asset expenditures of between $45 million and $50 million for fiscal 2024 [43] Q&A Session Summary Question: Can you elaborate on the change in Pegasus costs? - Management clarified that the reduction in restructuring charges is due to a revised assessment of a potential exit from one of the businesses, which is no longer expected to incur costs [96] Question: What progress has been made with the new North American RMO? - Management indicated that the new regional marketing organization has started to yield positive results, including increased shelf space and distribution gains [100] Question: How is the company addressing inventory destocking? - Management noted that inventory levels are generally low, and they expect Q4 ordering patterns to align more closely with the first half of the year [108]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, detailing asset, income, and cash flow changes for the quarter and six months ended August 31, 2023 [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Total assets slightly decreased to **$2.90 million**, while net income declined, and operating cash flow significantly improved to **$157.7 million** for the six-month period Condensed Consolidated Balance Sheet Highlights (Unaudited) | (in thousands) | August 31, 2023 | February 28, 2023 | | :--- | :--- | :--- | | **Total current assets** | $888,692 | $892,041 | | **Total assets** | $2,901,660 | $2,913,715 | | **Total current liabilities** | $472,395 | $412,158 | | **Total liabilities** | $1,399,777 | $1,424,904 | | **Total stockholders' equity** | $1,501,883 | $1,488,811 | Condensed Consolidated Statements of Income (Unaudited) | (in thousands, except per share data) | Three Months Ended Aug 31, 2023 | Three Months Ended Aug 31, 2022 | Six Months Ended Aug 31, 2023 | Six Months Ended Aug 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Sales revenue, net** | $491,563 | $521,400 | $966,235 | $1,029,478 | | **Gross profit** | $229,653 | $221,446 | $445,284 | $432,617 | | **Operating income** | $46,845 | $46,946 | $87,486 | $80,885 | | **Net income** | $27,381 | $30,672 | $49,962 | $55,267 | | **Diluted EPS** | $1.14 | $1.28 | $2.07 | $2.29 | Condensed Consolidated Statements of Cash Flows (Unaudited) | (in thousands) | Six Months Ended Aug 31, 2023 | Six Months Ended Aug 31, 2022 | | :--- | :--- | :--- | | **Net cash provided (used) by operating activities** | $157,732 | $(75,452) | | **Net cash used by investing activities** | $(20,311) | $(258,922) | | **Net cash (used) provided by financing activities** | $(142,280) | $340,643 | [Note 1: Basis of Presentation and Corporate Overview](index=9&type=section&id=Note%201%20-%20Basis%20of%20Presentation%20and%20Related%20Information) This note outlines the corporate structure, detailing the consolidation of Health & Wellness and Beauty segments into a new 'Beauty & Wellness' reportable segment - Effective Q4 fiscal 2023, the company consolidated its Health & Wellness and Beauty segments into a single **'Beauty & Wellness'** reportable segment, now operating two segments: **Home & Outdoor** and **Beauty & Wellness**[17](index=17&type=chunk) [Note 8: Restructuring Plan (Project Pegasus)](index=15&type=section&id=Note%208%20-%20Restructuring%20Plan) This note details 'Project Pegasus,' a global restructuring plan targeting **$60-$65 million** in charges and **$75-$85 million** in annual pre-tax operating profit improvements - Project Pegasus now estimates lower total pre-tax restructuring charges of **$60-$65 million** (down from **$85-$95 million**), to be completed during fiscal 2025[54](index=54&type=chunk) - The plan targets annualized pre-tax operating profit improvements of **$75-$85 million**, expected to be substantially achieved by fiscal 2026, with savings realized approximately **60%** through reduced cost of goods sold and **40%** through lower SG&A[55](index=55&type=chunk) Restructuring Charges Incurred (Project Pegasus) | (in thousands) | Three Months Ended Aug 31, 2023 | Six Months Ended Aug 31, 2023 | Total Incurred Since Inception | | :--- | :--- | :--- | :--- | | **Total restructuring charges** | $3,617 | $10,972 | $38,334 | [Note 14: Segment Information](index=26&type=section&id=Note%2014%20-%20Segment%20Information) This note provides a financial breakdown by segment, detailing net sales and operating income for the Home & Outdoor and Beauty & Wellness segments Segment Performance for Three Months Ended August 31, 2023 | (in thousands) | Home & Outdoor | Beauty & Wellness | Total | | :--- | :--- | :--- | :--- | | **Sales revenue, net** | $239,977 | $251,586 | $491,563 | | **Operating income** | $36,099 | $10,746 | $46,845 | Segment Performance for Six Months Ended August 31, 2023 | (in thousands) | Home & Outdoor | Beauty & Wellness | Total | | :--- | :--- | :--- | :--- | | **Sales revenue, net** | $457,121 | $509,114 | $966,235 | | **Operating income** | $58,215 | $29,271 | $87,486 | [Management's Discussion and Analysis (MD&A)](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, noting a **5.7%** decrease in net sales, improved gross margin, and enhanced liquidity from operations [Overview and Significant Trends](index=30&type=section&id=Overview%20and%20Significant%20Trends) This section outlines ongoing transformation, macroeconomic impacts on consumer spending, growth in online sales, and the favorable resolution of patent litigation - The company's online channel sales grew approximately **17%** year-over-year for the quarter, comprising about **27%** of total consolidated net sales revenue[118](index=118&type=chunk) - On September 19, 2023, the ITC issued a Final Determination in the company's favor regarding the Brita patent litigation, terminating the investigation[113](index=113&type=chunk) - High inflation and interest rates negatively impacted consumer disposable income and spending, leading to reduced retail orders and adverse Q2 FY2024 results[114](index=114&type=chunk)[117](index=117&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) This section analyzes financial performance, noting a **5.7%** decrease in consolidated net sales, a **4.2** percentage point gross margin expansion, and a nearly flat operating income Consolidated Results Summary - Q2 FY2024 vs Q2 FY2023 | (in thousands) | Q2 FY2024 | Q2 FY2023 | % Change | | :--- | :--- | :--- | :--- | | **Total sales revenue, net** | $491,563 | $521,400 | (5.7)% | | **Gross profit** | $229,653 | $221,446 | 3.7% | | **Operating income** | $46,845 | $46,946 | (0.2)% | | **Net income** | $27,381 | $30,672 | (10.7)% | - The **5.7%** decline in consolidated net sales was driven by a **6.0%** decrease from Organic business, primarily due to lower sales in Beauty & Wellness and Home & Outdoor categories[134](index=134&type=chunk)[138](index=138&type=chunk) - Consolidated gross profit margin increased by **4.2** percentage points to **46.7%**, primarily due to lower inbound freight costs and the absence of prior-year EPA compliance costs of **$7.1 million**[151](index=151&type=chunk)[153](index=153&type=chunk) - Consolidated SG&A ratio increased by **3.9** percentage points to **36.5%**, driven by higher compensation, marketing, and distribution expenses, and unfavorable sales leverage[154](index=154&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened significantly, with operating cash flow increasing to **$157.7 million** and capital expenditures decreasing to **$20.6 million** - Net cash provided by operating activities was **$157.7 million** for the six months ended August 31, 2023, a significant improvement from **$75.5 million** cash used in the prior year, driven by improved inventory and accounts receivable management[187](index=187&type=chunk)[188](index=188&type=chunk) - Capital and intangible asset expenditures decreased to **$20.6 million** for the first six months of fiscal 2024, compared to **$112.6 million** in the prior year, following the completion of a new distribution facility[189](index=189&type=chunk) - As of August 31, 2023, the company had an outstanding Credit Agreement principal balance of **$846.8 million** and **$629.2 million** available for borrowing[193](index=193&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk disclosures from its most recent Form 10-K, with key risks actively managed - There have been no material changes in the company's quantitative and qualitative disclosures about market risk since the last Form 10-K filing[198](index=198&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of August 31, 2023, with no material changes to internal controls identified - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of August 31, 2023[201](index=201&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[202](index=202&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings and Risk Factors](index=54&type=section&id=Item%201.%20Legal%20Proceedings%20%26%20Item%201A.%20Risk%20Factors) The company reports no material changes to legal proceedings or risk factors since its last Form 10-K, except for a favorably resolved patent litigation - There have been no material changes in legal proceedings or risk factors since the last Form 10-K, other than the favorably resolved patent litigation discussed in Note 9[203](index=203&type=chunk)[204](index=204&type=chunk) [Issuer Purchases of Equity Securities](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details share repurchase activity, with **381,965** shares repurchased for **$50.1 million**, and **$349.1 million** remaining under authorization Share Repurchase Activity (June 1 - August 31, 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | June 2023 | 477 | $97.01 | | July 2023 | 381,221 | $131.18 | | August 2023 | 267 | $125.86 | | **Total** | **381,965** | **$131.14** | - As of August 31, 2023, approximately **$349.1 million** remained available under the current stock repurchase authorization[206](index=206&type=chunk)[207](index=207&type=chunk)