EL PASO, Texas – Helen of Troy Limited (NASDAQ: HELE), a global designer, developer and marketer of consumer products, reported a disappointing start to fiscal 2025, with first quarter earnings and revenue falling short of Wall expectations Street .
The company’s adjusted earnings per share (EPS) of $0.99 was significantly lower than analyst estimates of $1.59. Revenue also fell short, coming in at $416.8 million, versus the consensus estimate of $445.85 million.
The company’s shares plummeted 26% after the release of these results.
Helena van Troje cited a combination of internal and external challenges that resulted in performance below their original expectations. CEO Noel M. Geoffroy expressed disappointment with the quarter’s results, attributing the shortfall to increased challenges toward the end of the quarter, some of which continue to develop.
Compared to the same quarter last year, consolidated net sales decreased 12.2%, with notable declines in sales of hair equipment, prestige hair care products and humidifiers in the Beauty & Wellness segment. The Home & Outdoor segment also saw a decline, primarily due to lower replenishment orders from residential customers and issues at the company’s Tennessee distribution facility.
Despite the increase in the consolidated gross profit margin, which improved by 330 basis points to 48.7% compared to 45.4%, the operating margin decreased from 8.6% to 7.4%. In addition, non-GAAP adjusted EBITDA margin decreased from 15.2% to 12.6%.
Looking ahead, Helen of Troy has revised its guidance for fiscal 2025, lowering consolidated net sales to $1.885-$1.935 billion, with adjusted diluted earnings per share expected to be in the range of $7.00 to $7.50. This updated guidance falls short of analyst consensus of $8.93 for adjusted earnings per share and $1.98 billion for revenue.
Geoffroy remains confident in the company’s long-term strategies and highlights the ongoing benefits of Project Pegasus, a restructuring plan aimed at delivering savings and improving efficiencies. He also highlighted investments in new talent and improved data analytics capabilities as key factors in revitalizing the company.
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