Financial Data and Key Metrics Changes - Consolidated net sales decreased by 16.7%, reflecting lower consumer demand and reduced orders from retail customers due to inventory reduction efforts [117] - Core net sales declined by 16.2% and core adjusted diluted EPS decreased by 19.9% in the fourth quarter [72] - GAAP consolidated operating margin for the quarter was 11.1%, compared to 8.7% in the same period last year, with adjusted operating margin expanding by 130 basis points to 13.8% [86] Business Line Data and Key Metrics Changes - Home & Outdoor total sales were up 0.5% in the quarter, driven by a full three months contribution from Osprey [72] - OXO continued to see point of sale (POS) at brick-and-mortar below peak prior year levels due to normalization of demand from COVID highs [73] - Prestige Beauty showed growth in Curlsmith and Drybar appliances and liquids during the quarter [76] Market Data and Key Metrics Changes - Despite overall category declines, Helen of Troy's US market shares remained strong in thermometers, inhalants, and humidifiers, holding the number one position among branded products in these categories [46] - Internationally, net sales growth was driven primarily by OXO and Osprey as replenishment orders progressed towards normalization [78] Company Strategy and Development Direction - The company is focused on leveraging the successes of its transformation and enhancing its diversified portfolio of brands [104] - Project Pegasus is expected to deliver significant savings and operational efficiency, with a focus on growth investments and better leveraging of scale [64][66] - The company plans to continue advancing its ESG priorities and initiatives, with key objectives under the first stage of its ESG roadmap completed [147] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued softness in consumer spending patterns, particularly in discretionary categories, due to inflation and higher interest rates [125][190] - The company expects adjusted diluted EPS growth to be concentrated in the third and fourth quarters of fiscal 2024, benefiting from lower inbound freight and commodity costs [131] - Management expressed confidence in the company's ability to navigate challenges and emerge stronger, with a focus on operational earnings growth and margin expansion [168] Other Important Information - The company has significantly reduced its exposure to interest rate volatility by swapping $425 million of its outstanding variable rate debt to fixed rates [123] - The fiscal 2024 outlook includes expected revenue impacts from SKU rationalization and the removal of Bed Bath & Beyond revenue from projections [158] Q&A Session Summary Question: Can you provide insights on market share and category performance? - Management noted that while there has been softness in categories like volumizers, OXO has seen strong share results during the COVID period, with some normalization expected [178][179] Question: What are the expectations for sales growth in Home & Outdoor and Beauty & Wellness? - The company expects declines in Beauty & Wellness due to SKU rationalization and other factors, while Home & Outdoor may see slight growth [183][184] Question: How is the company addressing gross margin and product mix? - Management highlighted expectations for significant gross margin expansion driven by acquisitions and a focus on higher-margin businesses [188]

Distribution and Logistics - Approximately 56% of the company's consolidated gross sales volume shipped from three distribution facilities in northern Mississippi in fiscal 2023[74] - The company completed the construction of an additional distribution facility in Gallaway, Tennessee, which became operational in the first quarter of fiscal 2024[74] - The company's geographic concentration of U.S. distribution facilities increases the risk of disruptions affecting timely product delivery[74] - The company completed the construction of a new distribution facility in Gallaway, Tennessee, which became operational in the first quarter of fiscal 2024[34] - The company completed construction of a new distribution facility in Gallaway, Tennessee, operational in Q1 fiscal 2024, featuring state-of-the-art automation[176] Customer Concentration - Sales to the company's two largest customers accounted for approximately 27% of consolidated net sales revenue in fiscal 2023[79] - Sales to the top five customers in aggregate accounted for approximately 43% of fiscal 2023 consolidated net sales revenue[79] Manufacturing and Sourcing - Finished goods manufactured in Asia comprised approximately 87% of total finished goods purchased in fiscal 2023[80] - The company relies on third-party manufacturers, primarily located in Asia, exposing it to risks such as global public health crises and changing international political relations[80] - The company is diversifying its supplier base by exploring sourcing alternatives outside of China to mitigate risks associated with supplier closures and economic pressures[81] - The company's top two vendors fulfilled approximately 13%, 16%, and 20% of product requirements for fiscal 2023, 2022, and 2021, respectively[377] Cybersecurity and IT Risks - The company faces risks from cybersecurity breaches, obsolescence, or interruptions in its central global Enterprise Resource Planning (ERP) systems[73] Geopolitical and Trade Risks - The company's operations are subject to risks from trade barriers, exchange controls, and geopolitical tensions, including the conflict between Russia and Ukraine[63] - International operations in Asia, EMEA, and Latin America are exposed to risks such as economic instability, political changes, and global conflicts, including the Russia-Ukraine conflict[86][87] - The company successfully obtained tariff exclusions from the USTR on certain products imported from China, but these exclusions may expire, potentially leading to higher tariffs[188] Innovation and Competition - The company's ability to compete depends on developing a continuous stream of innovative new products to meet changing consumer preferences[75] Supply Chain and Freight Costs - Global supply chain disruptions during fiscal 2021 and 2022 led to higher inbound freight costs and raw material price surges, impacting operating costs, but freight costs have begun to recede in fiscal 2023[82] - The company faces risks of inaccurate demand forecasting, which could lead to difficulties in fulfilling customer orders or liquidating excess inventories[83] - Delivery delays due to vendor production issues, shipping difficulties, and third-party logistics risks could harm the company's reputation and result in lost customers[84][85] - The company's net expense for shipping and handling was $162.0 million, $173.4 million, and $140.1 million during fiscal 2023, 2022, and 2021, respectively[401] Licensing and Trademarks - The company's reliance on licensed trademarks for a significant portion of sales revenue poses risks if license agreements are terminated or trademark value diminishes[90] - The Beauty & Wellness segment relies heavily on licensed trademarks, which require licensor approval for new products and packaging, and some agreements mandate minimum royalty payments[27] - The company sold several trademarks, including Brut, Pert, Sure, and Infusium, as part of the divestiture of its Personal Care businesses[28] Seasonal and Weather Impact - Sales in the Beauty & Wellness segment are influenced by weather conditions and seasonal trends, which can cause fluctuations in operating results[91] - The 2022-2023 cough/cold/flu season was above historical averages, contributing to higher sales in the Beauty & Wellness segment[191] Strategic Initiatives and Restructuring - The company is evaluating strategic opportunities, including acquisitions, divestitures, and global restructuring plans like Project Pegasus, to drive long-term growth and operating efficiencies[93][94] - The company incurred $27.4 million in pre-tax restructuring costs during fiscal 2023 as part of Project Pegasus, aimed at improving efficiency and reducing costs[159] - Organizational restructuring reduced the global workforce by approximately 10%, with most reductions completed by March 1, 2023[167] - The company incurred $27.4 million in pre-tax restructuring costs related to Project Pegasus in fiscal 2023[169] Tax and Compliance - Potential changes in global tax laws, such as the OECD's Inclusive Framework project, could increase the company's effective tax rate and compliance costs[96] - The company is subject to global privacy and data security laws, which could result in increased compliance costs and operational challenges[104] - Changes in U.S. federal income tax laws regarding controlled foreign corporations could impact the company's largest U.S. shareholders and its business operations[106] - Effective income tax rate decreased to 16.4% in fiscal 2023 from 13.9% in fiscal 2022, primarily due to changes in statutory tax rates in Macau, Barbados, and Switzerland, as well as foreign exchange fluctuations[524] - Liability for tax-related interest and penalties associated with unrecognized tax benefits was $3.1 million at the end of fiscal 2023, down from $3.2 million in fiscal 2022[530] Environmental and Regulatory Compliance - The company faced compliance challenges with the EPA regarding packaging claims for certain products, leading to temporary stop shipments and repackaging efforts[103] - EPA compliance costs totaled $23.6 million in fiscal 2023, including $16.9 million in cost of goods sold and $6.6 million in SG&A[186] - The company completed repackaging and relabeling plans for certain humidifier and air filtration products in fiscal 2023, following discussions with the EPA[183] Financial Performance - Consolidated net sales revenue decreased 6.8% to $2,072.7 million in fiscal 2023, compared to $2,223.4 million in fiscal 2022[200] - Consolidated operating income decreased 22.3% to $211.8 million in fiscal 2023, compared to $272.6 million in fiscal 2022[200] - Net income decreased 36.0% to $143.3 million in fiscal 2023, compared to $223.8 million in fiscal 2022[200] - Home & Outdoor segment net sales revenue increased 5.8% to $915.7 million in fiscal 2023, compared to $865.8 million in fiscal 2022[210] - Beauty & Wellness segment net sales revenue decreased 14.8% to $1,156.982 million in fiscal 2023, compared to $1,357.511 million in fiscal 2022[194] - Net sales revenue from Leadership Brands decreased 3.1% to $1,753.7 million in fiscal 2023, compared to $1,810.2 million in fiscal 2022[206] - Consolidated adjusted operating income decreased 15.3% to $300.9 million in fiscal 2023, compared to $355.1 million in fiscal 2022[200] - Adjusted diluted EPS decreased 23.5% to $9.45 in fiscal 2023, compared to $12.36 in fiscal 2022[200] - Net sales revenue for fiscal year 2023 was $2.07 billion, a decrease from $2.22 billion in fiscal year 2022[348] - Gross profit for fiscal year 2023 was $899.4 million, down from $953.2 million in fiscal year 2022[348] - Net income for fiscal year 2023 was $143.3 million, compared to $223.8 million in fiscal year 2022[348] - Diluted earnings per share (EPS) for fiscal year 2023 was $5.95, down from $9.17 in fiscal year 2022[348] Asset and Liability Management - Total assets as of February 28, 2023 were $2.91 billion, compared to $2.82 billion as of February 28, 2022[347] - Total liabilities as of February 28, 2023 were $1.42 billion, down from $1.50 billion as of February 28, 2022[347] - U.S. long-lived assets increased to $357.6 million in fiscal 2023, up from $213.5 million in fiscal 2022[512] - The company repatriated $48.3 million of cash from U.S.-owned foreign subsidiaries without incurring additional U.S. federal income tax[521] - Deferred tax assets decreased to $65.085 million in fiscal 2023 from $65.816 million in fiscal 2022, with a valuation allowance of $10.706 million[527] - Weighted average diluted shares outstanding decreased to 24.090 million in fiscal 2023 from 24.410 million in fiscal 2022[533] - Allowance for credit losses increased to $1.678 million in fiscal 2023 from $843 million in fiscal 2022, with additions of $1.798 million and deductions of $963 million[534] - The company's property and equipment, net, as of February 28, 2023, was $351.793 million, up from $205.378 million in 2022[417] - The company's construction in progress for property and equipment increased significantly from $61.168 million in 2022 to $209.068 million in 2023[417] - The company's total accrued expenses and other current liabilities for fiscal 2023 and 2022 were $200.718 million and $271.675 million respectively[418] Acquisitions and Divestitures - The company completed the sale of its Latin America and Caribbean Personal Care business at the beginning of fiscal 2023, following the sale of its North America Personal Care business in fiscal 2022[25] - The company divested its North America Personal Care business for $44.7 million and its Latin America and Caribbean Personal Care business for $1.8 million[163] - The company completed the acquisition of Osprey Packs, Inc. for $409.3 million in cash on December 29, 2021[361] - The company sold its North America Personal Care business for $44.7 million in cash on June 7, 2021[362] - The company completed the sale of its North America Personal Care business for $44.7 million in cash and recognized a gain of $0.5 million, and the Latin America and Caribbean Personal Care business for $1.8 million in cash with a gain of $1.3 million[415] - The company completed the acquisition of Curlsmith for $147.9 million in cash, net of a final net working capital adjustment of $2.1 million and cash acquired[419] - The company incurred pre-tax acquisition-related expenses of $2.7 million during fiscal 2023, recognized in SG&A[419] Interest Rates and Debt - The Federal Open Market Committee increased the benchmark interest rate by 450 basis points during fiscal 2023, leading to higher average interest rates[172] - A hypothetical 1% increase in interest rates would increase annual interest expense by approximately $5.1 million in fiscal 2023[320] - The company borrowed $250 million as term loans under the Credit Agreement, with quarterly repayments of 0.625% starting in Q3 2023, and a maturity date of March 13, 2025[278] - The company repaid $928.4 million drawn under the Credit Agreement and $1.9 million of long-term debt[278] - The company updated its interest rate swap contracts to replace LIBOR with Term SOFR, with a credit spread of 0.10% for Term SOFR borrowings[278] - The company's maximum leverage ratio is temporarily adjusted to 4.00 to 1.00 through February 28, 2023, 3.75 to 1.00 through May 31, 2023, and 3.50 to 1.00 thereafter[278] Share Repurchases and Equity - The company repurchased and retired 90,462 shares of common stock at an average price of $203.02 per share for a total of $18.4 million in fiscal 2022[274] - The company repurchased and retired 1,030,023 shares of common stock at an average price of $197.37 per share, totaling $203.3 million[278] - Total stockholders' equity increased to $1.49 billion as of February 28, 2023, compared to $1.33 billion as of February 28, 2022[347] Cash Flow and Financing - Operating activities provided net cash of $208.2 million in fiscal 2023, compared to $140.8 million in fiscal 2022, driven by decreased inventory purchases and accounts receivable[265] - Investing activities used $319.3 million, $438.9 million, and $98.7 million in cash for fiscal 2023, 2022, and 2021, respectively[267] - Financing activities provided $106.8 million and $286.4 million in cash for fiscal 2023 and 2022, respectively, while using $194.8 million in fiscal 2021[271] - The company drew $685.8 million in revolving loans and repaid $795.3 million under its Credit Agreement in fiscal 2022[274] Advertising and R&D - The company incurred total advertising costs of $98.5 million, $96.4 million, and $110.7 million during fiscal 2023, 2022, and 2021, respectively[399] - The company incurred total research and development expenses of $47.8 million, $54.0 million, and $53.4 million during fiscal 2023, 2022, and 2021, respectively[400] Leases and Intangible Assets - Operating lease expense for fiscal 2023, 2022, and 2021 was $16.3 million, $13.3 million, and $9.5 million respectively, including short-term lease expense of $6.4 million, $3.7 million, and $2.5 million[410] - Total future lease payments as of February 28, 2023, amount to $63.134 million, with a present value of lease liability at $49.792 million[411] - The company amortizes intangible assets over their economic useful lives, ranging from 5 to 40 years for licenses, 15 to 30 years for trademarks, and 4.5 to 24 years for other definite-lived intangible assets[388] - The company's weighted average discount rate for leases as of February 28, 2023, was 5.62%, up from 5.52% in 2022[411] Insurance and Losses - Inventory damage from a weather-related incident in Q1 fiscal 2023 resulted in a $34.4 million write-off, fully offset by insurance recoveries of $34.4 million[162] Foreign Exchange Impact - Foreign currency exchange rate fluctuations had an unfavorable impact on consolidated net sales revenue of approximately $17.0 million, or 0.8%, in fiscal 2023[190] - The Chinese Renminbi weakened against the U.S. Dollar by approximately 6.0% in fiscal 2023 compared to fiscal 2022[316] Internal Controls and Reporting - No material changes in internal control over financial reporting were identified during fiscal 2023[542] Customer Programs and Variable Consideration - The company recorded $40.2 million, $39.0 million, and $27.1 million in customer-related programs as variable consideration in fiscal 2023, 2022, and 2021, respectively[397] Depreciation and Amortization - The company recorded $26.4 million, $23.1 million, and $20.1 million of depreciation expense for fiscal 2023, 2022, and 2021 respectively[417] Goodwill and Intangible Assets - Goodwill increased to $1.07 billion as of February 28, 2023, up from $948.9 million as of February 28, 2022[347] - Capital and intangible asset expenditures totaled $174.9 million in fiscal year 2023, including $147.0 million for a new 2 million square foot distribution facility[268] - In fiscal 2021, the company invested $98.7 million in capital and intangible assets, including a $72.5 million one-time fee for the Revlon License extension[270] ESG and Regulatory Challenges - Increased focus on ESG matters could lead to higher costs and regulatory compliance challenges, potentially impacting the company's business and reputation[99] Leadership and Workforce - The company faces risks related to the loss of key senior officers, which could disrupt operations and have a material adverse effect on the business[92] Online and Multichannel Sales - Online and multichannel sales comprised 23% of total consolidated net sales revenue in fiscal 2023, a decrease of 8.9% from fiscal 2022[175]

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, 2022 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 ...

Helen of Troy Limited (NASDAQ:HELE) Q3 2023 Earnings Conference Call January 5, 2023 9:00 AM ET Company Participants Jack Jancin - Senior Vice President of Corporate Business Development Julien Mininberg - Chief Executive Officer Noel Geoffroy - Chief Operating Officer Matt Osberg - Chief Financial Officer Conference Call Participants Rupesh Parikh - Oppenheimer Bob Labick - CJS Securities Olivia Tong - Raymond James Linda Bolton Weiser - D.A. Davidson Susan Anderson - Canaccord Anthony Lebiedzinski - Sidot ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Net sales increased due to acquisitions, but operating and net income declined, while total assets and long-term debt rose Financial Performance Summary | Financial Metric | Three Months Ended Aug 31, 2022 | Three Months Ended Aug 31, 2021 | | :--- | :--- | :--- | | **Net Sales Revenue ($M)** | $521.4 | $475.2 | | **Gross Profit ($M)** | $221.4 | $210.6 | | **Operating Income ($M)** | $46.9 | $67.3 | | **Net Income ($M)** | $30.7 | $51.3 | | **Diluted EPS** | $1.28 | $2.11 | Balance Sheet Summary | Balance Sheet Item | August 31, 2022 | February 28, 2022 | | :--- | :--- | :--- | | **Total Current Assets ($M)** | $1,237.8 | $1,082.1 | | **Total Assets ($M)** | $3,225.2 | $2,823.5 | | **Total Current Liabilities ($M)** | $583.1 | $602.7 | | **Long-Term Debt ($M)** | $1,148.9 | $811.3 | | **Total Stockholders' Equity ($M)** | $1,398.3 | $1,327.3 | Cash Flow Summary | Cash Flow Metric (Six Months Ended) | August 31, 2022 | August 31, 2021 | | :--- | :--- | :--- | | **Net Cash Used by Operating Activities ($M)** | ($75.5) | ($58.3) | | **Net Cash (Used) Provided by Investing Activities ($M)** | ($258.9) | $24.0 | | **Net Cash Provided by Financing Activities ($M)** | $340.6 | $21.0 | [Note 4 - Acquisitions](index=11&type=section&id=Note%204%20-%20Acquisitions) Details the acquisition of Curlsmith for $149.7 million and Osprey for $409.3 million - Completed the acquisition of Curlsmith on April 22, 2022, for a total purchase consideration of **$149.7 million in cash**[31](index=31&type=chunk) - Completed the acquisition of Osprey on December 29, 2021, for a total purchase consideration of **$409.3 million in cash**[39](index=39&type=chunk) [Note 8 - Restructuring Plan](index=16&type=section&id=Note%208%20-%20Restructuring%20Plan) Outlines 'Project Pegasus' to improve efficiency and reduce costs, targeting $75-85 million in profit improvements - Initiated a global restructuring plan, "Project Pegasus," intended to improve efficiency and reduce costs[51](index=51&type=chunk) - Project Pegasus targets annualized pre-tax operating profit improvements of approximately **$75 million to $85 million**, expected to be substantially achieved by the end of fiscal 2026[53](index=53&type=chunk) - Total one-time pre-tax restructuring charges are estimated to be between **$85 million and $95 million** over the duration of the plan, with **$4.8 million** incurred in Q2 FY23[52](index=52&type=chunk)[53](index=53&type=chunk) [Note 9 - Commitments and Contingencies](index=17&type=section&id=Note%209%20-%20Commitments%20and%20Contingencies) Discusses patent infringement litigation and EPA compliance issues impacting sales and profits - The company is involved in patent infringement litigation with Brita LP regarding its PUR water filtration systems[56](index=56&type=chunk) - Discussions with the EPA regarding packaging claims on certain Health & Wellness products led to temporary stop shipments and ongoing repackaging efforts, which materially impacted sales and profits[58](index=58&type=chunk) EPA Compliance Costs (in thousands) | EPA Compliance Costs | Three Months Ended Aug 31, 2022 | Six Months Ended Aug 31, 2022 | | :--- | :--- | :--- | | **Cost of goods sold** | $7,103 | $16,558 | | **SG&A** | $1,251 | $3,440 | | **Total** | $8,354 | $19,998 | [Note 14 - Segment Information](index=26&type=section&id=Note%2014%20-%20Segment%20Information) Provides detailed sales revenue and operating income data across Home & Outdoor, Health & Wellness, and Beauty segments Segment Performance (Three Months Ended Aug 31, 2022) | Segment | Sales Revenue, Net ($M) | Operating Income (Loss) ($M) | | :--- | :--- | :--- | | **Home & Outdoor** | $240.6 | $42.1 | | **Health & Wellness** | $180.5 | ($2.6) | | **Beauty** | $100.3 | $7.5 | | **Total** | $521.4 | $46.9 | Segment Performance (Three Months Ended Aug 31, 2021) | Segment | Sales Revenue, Net ($M) | Operating Income ($M) | | :--- | :--- | :--- | | **Home & Outdoor** | $215.2 | $41.9 | | **Health & Wellness** | $141.5 | $4.8 | | **Beauty** | $118.5 | $20.6 | | **Total** | $475.2 | $67.3 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Sales growth was driven by acquisitions, while profitability declined due to macroeconomic pressures, higher costs, and unfavorable product mix [Significant Trends Impacting the Business](index=32&type=section&id=Significant%20Trends%20Impacting%20the%20Business) Analyzes macroeconomic trends, retail inventory rebalancing, supply chain disruptions, and online sales growth - Macroeconomic trends, including high inflation and rising interest rates, are negatively impacting consumer disposable income and spending on discretionary items[113](index=113&type=chunk)[115](index=115&type=chunk) - The company experienced an adverse impact on orders as retail customers aimed to rebalance their inventory levels in response to lower consumer demand and shifts in spending patterns[116](index=116&type=chunk) - Global supply chain disruptions continue to cause higher costs, less capacity, and longer lead times, with inbound freight costs increasing by several multiples compared to calendar year 2020 averages[120](index=120&type=chunk)[122](index=122&type=chunk) - Online sales comprised approximately **22% of total consolidated net sales** for the quarter and grew by about **8% year-over-year**[117](index=117&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Details the drivers of net sales growth, gross profit margin decline, SG&A ratio increase, and rising interest expense Net Sales Revenue Growth (Q2 FY23 vs Q2 FY22) | Net Sales Revenue Growth | Home & Outdoor | Health & Wellness | Beauty | Total | | :--- | :--- | :--- | :--- | :--- | | **Total Growth** | 11.8% | 27.6% | (15.4)% | 9.7% | | **Organic Business** | (9.0)% | 27.9% | (23.1)% | (1.5)% | | **Acquisition Impact** | 22.0% | 0.0% | 8.6% | 12.1% | - Consolidated gross profit margin decreased by **1.8 percentage points to 42.5%**, primarily due to an unfavorable product mix from the Osprey acquisition, higher EPA compliance costs, and the dilutive impact of inflationary costs[165](index=165&type=chunk) - The consolidated SG&A ratio increased by **2.5 percentage points to 32.6%**, driven by higher outbound freight costs, increased marketing expenses, and higher salary and wage costs[168](index=168&type=chunk) - Interest expense increased to **$9.2 million** from **$3.3 million** in the prior-year quarter, due to higher average debt levels from acquisitions and rising interest rates[188](index=188&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) Outlines credit agreement amendments, cash position, available borrowing capacity, and increased capital expenditures - The company amended its Credit Agreement, borrowing an additional **$250 million** as term loans and replacing LIBOR with Term SOFR as the reference interest rate[202](index=202&type=chunk)[210](index=210&type=chunk) - As of August 31, 2022, the company had **$39.7 million in cash and cash equivalents** and **$324.3 million available for borrowing** under its Credit Agreement[201](index=201&type=chunk)[212](index=212&type=chunk) - Capital expenditures increased to **$112.6 million** for the six-month period, up from **$24.0 million** in the prior year, primarily for the construction of a new distribution center for the Home & Outdoor segment[208](index=208&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures, with a 1.0% interest rate increase projected to raise annual interest expense by $10.5 million - A **1.0% increase in market interest rates** would lead to an estimated **$10.5 million increase in annual interest expense**, net of the effect of interest rate swaps[219](index=219&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting identified - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[222](index=222&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[223](index=223&type=chunk) [PART II. OTHER INFORMATION](index=58&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) No material changes in legal proceedings have occurred since the last Form 10-K filing - There have been no material changes in legal proceedings from those disclosed in the company's most recent Form 10-K[224](index=224&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors, but increased emphasis on vulnerability to economic downturns impacting consumer discretionary spending - The company emphasizes its vulnerability to prolonged economic downturns, as consumer purchases of discretionary items tend to decline when disposable income is lower[227](index=227&type=chunk) - Factors affecting consumer spending include inflation, interest rates, credit availability, energy costs, and consumer confidence, all of which are beyond the company's control[226](index=226&type=chunk)[227](index=227&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details share repurchase activity under a $500 million authorization, primarily for tax withholding on employee equity awards - The Board of Directors authorized a repurchase of up to **$500 million of common stock**, effective August 25, 2021, for a three-year period[229](index=229&type=chunk) Share Repurchase Activity (2022) | Period (2022) | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **June** | 281 | $173.28 | | **July** | 163 | $157.69 | | **August** | 57 | $129.97 | | **Total Q2** | 501 | $163.28 | - All shares purchased during the quarter were acquired from associates to satisfy tax withholding on equity awards; there were no open market purchases[230](index=230&type=chunk)

Helen of Troy Limited (NASDAQ:HELE) Q2 2023 Earnings Conference Call October 5, 2022 9:00 AM ET Company Participants Jack Jancin - Senior Vice President, Corporate Business Development Julien Mininberg - Chief Executive Officer Matt Osberg - Chief Financial Officer Noel Geoffroy - Chief Operating Officer Conference Call Participants Bob Labick - CJS Securities Rupesh Parikh - Oppenheimer Olivia Tong - Raymond James Anthony Lebiedzinski - Sidoti & Company Linda Bolton Weiser - D.A. Davidson. Bob Labick - CJS ...

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 May 31, 2022 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) Bermuda 74-2692550 (St ...

Helen of Troy Limited (NASDAQ:HELE) Q1 2023 Earnings Conference Call July 7, 2022 9:00 AM ET Company Participants Jack Jancin - Senior Vice President, Corporate Business Development Julien Mininberg - Chief Executive Officer Matt Osberg - Chief Financial Officer Conference Call Participants Bob Labick - CJS Securities Rupesh Parikh - Oppenheimer Linda Bolton Weiser - D.A. Davidson Anthony Lebiedzinski - Sidoti Steve Marotta - CL King Operator Greetings, and welcome to the Helen of Troy First Quarter Fiscal ...

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 28, 2022 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 ...

Helen of Troy Acquisition of Curlsmith Investor Overview – April 2022 STYLE BALN LEAVE-I CONDITION 8floz /237 mL or ras Forward Looking Statements and Reconciliation of Non-GAAP Financial Measures Forward Looking Statements: Certain written and oral statements made by the Company and subsidiaries of the Company may constitute "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. This includes statements made in this press release, in other filings with the SEC, ...