Helen of Troy beats profit and revenue expectations, trims sales outlook
Helen of Troy Corp. reported Tuesday fiscal third-quarter earnings and revenue that beat expectations, but trimmed its full-year sales outlook citing deceleration of growth in China e-commerce. Shares of the consumer products company, which brands include Braun and Vicks, were still inactive in premarket trade. For the quarter to Nov. 30, the company swung to a net profit of $49.5 million, or $1.88 a share, from a loss of $30.4 million, or $1.12 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share from continuing operations fell to $2.40 from $2.50, but beat the FactSet consensus of $2.36. Revenue rose 2.4% to $431.1 million, above the FactSet consensus of $425.8 million, as growth in leadership brands sales offset a decline in personal care and the discontinuation of certain brands in beauty. Looking ahead, the company lowered its fiscal 2019 sales guidance range to $1.535 billion to $1.550 billion from $1.535 billion to $1.560 billion, citing an unfavorable impact from pricing actions that have not been resolved with a key customer and a slowing of China e-commerce sales growth. The company raised its adjusted EPS outlook to $7.70 to $7.95 from $7.60 to $7.90 given a lower share count from share repurchases. The stock has gained 8.4% over the past three months, while the S&P 500 has shed 11.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.