Helen of Troy Limited (NASDAQ: HELE) posted second-quarter fiscal 2025 results, wherein both the top and bottom lines declined year over year. However, both metrics beat the Zacks Consensus Estimate.
During the quarter, management advanced its long-term strategies by strengthening the core business and reshaping the growth portfolio. Despite ongoing macroeconomic challenges, the company achieved early success with its 'Reset and Revitalize' initiative, driven by stronger brand fundamentals, refined marketing and innovation efforts and expanded distribution.
HELE's Q2 in Detail
Adjusted earnings of $1.21 per share surpassed the Zacks Consensus Estimate of $1.08, delivering a positive surprise of around 12%. However, the bottom line declined 30.5% year over year due to reduced adjusted operating income and higher tax rates. These were somewhat countered by lower interest expenses and shares outstanding.
Helen of Troy Limited Price, Consensus and EPS Surprise
Helen of Troy Limited price-consensus-eps-surprise-chart | Helen of Troy Limited Quote
Consolidated net sales of $474.2 million came ahead of the Zacks Consensus Estimate of $457 million. However, the metric fell 3.5% from the year-ago quarter's tally. This downtick was caused by reduced sales of hair appliances, humidifiers and air purifiers in the Beauty & Wellness unit. This was partly compensated by growth in the home and insulated beverageware categories in the Home & Outdoor segment. The decline in net sales was also partly mitigated by international expansion and increased sales of fans and thermometers within the Beauty & Wellness category.
The consolidated gross profit margin contracted 110 basis points (bps) to 45.6% due to less favorable product and customer mixes within the Home & Outdoor unit, partly made up by reduced commodity and product costs resulting from Project Pegasus initiatives.
The consolidated SG&A ratio increased 140 ...
