Helen of Troy Limited Reports Net Income of $22.6 Million in Q2 2023

The financial results revealed that Helen of Troy Limited generated $474.7 million in revenue during the second quarter of 2023. This represents a decline compared to the same period last year.

Overview

Helen of Troy Limited experienced a decline in both net income and revenue during the second quarter of 2023. The company reported a net income of $22.6 million, representing a decrease from the previous year. Additionally, the revenue for the quarter amounted to $474.7 million, reflecting a decline compared to the same period in 2022.

The company's condensed consolidated statements of income for the three months ended May 31, 2023, showed that sales revenue, net stood at $474.7 million, accounting for 100% of total sales revenue. The cost of goods sold was $259.0 million, resulting in a gross profit of $215.6 million, representing 45.4% of the sales revenue.

Helen of Troy Limited incurred selling, general, and administrative expenses (SG&A) amounting to $167.6 million, which accounted for 35.3% of the sales revenue. The company also reported restructuring charges of $7.4 million.

The operating income for the second quarter of 2023 was $40.6 million, reflecting an operating margin of 8.6%. Non-operating income, net amounted to $137, while interest expense reached $14.1 million. The income before income tax was $26.7 million, and the income tax expense was $4.1 million. Consequently, the net income for the quarter amounted to $22.6 million, resulting in a diluted earnings per share (EPS) of $0.94.

The company's financial report also provided information on its consolidated and segment net sales revenue. The Home & Outdoor segment generated sales revenue of $234.3 million, while the Beauty & Wellness segment contributed $273.8 million, resulting in a total net sales revenue of $508.1 million for the three months ended May 31, 2023.

Furthermore, the report outlined the net sales revenue by geographic region, with domestic sales revenue accounting for $359.6 million (75.7% of total sales revenue) and international sales revenue amounting to $115.1 million (24.3% of total sales revenue).

The financial report also included reconciliations of non-GAAP financial measures, such as operating income, net income, and diluted EPS, to adjusted measures. Additionally, it provided information on the company's balance sheet, liquidity, cash flow, and selected financial ratios.

Looking ahead, Helen of Troy Limited provided an outlook for fiscal 2024, projecting a net sales revenue of $1.97 billion to $2.02 billion, representing a decline of 2.8% to 5.2% compared to fiscal 2023.

Helen of Troy Limited reported a net income of $22.6 million for the second quarter of 2023, alongside revenue of $474.7 million. The company faced a decline in both net income and revenue compared to the same period last year, and it provided an outlook for fiscal 2024, anticipating a decline in net sales revenue.