Strong sales push Helen of Troy to beat 2Q profit expectations

Helen of Troy says particularly strong sales for its personal care segment, backed up by an even stronger performance from its household goods division, helped boost quarterly profits.

Second quarter sales jumped 5.6 percent to $162.20m, compared to sales of $153.54 in the corresponding quarter last year.

The company said that sales for its personal care division increased by 4.9 percent to reach £111.63m, while sales for the housewares division increased by 7.3 percent to £50.57m.

Profits make an impressive leap

Sales for the first six months, ending August 31, increased by 2.5 percent to $306.07m, a result that underlines how the company’s performance has improved considerably since the first quarter.

Net sales of personal care products for the first six months were almost stagnant, registering $212.61m, compared to $212.94m for the same period last year.

Net earnings for the first quarter increased by a 50.1 percent to $15.91m, while earnings for the first six months increased by 88.3 percent to $30.42m.

Growth in the face of a weak economy

Net earnings and sales for the quarter were well ahead of expectations, with analysts predicting net sales of $161.4, according to a poll from Thomson Reuters.

“Although the worldwide retail environment continues to be challenging, our leadership position in our segments allowed us to continue to perform well during the quarter,” said Gerald Rubin, Helen of Troy CEO.

Rubin added that the business would continue with its strategy to reduce costs, while simultaneously expanding sales through retail channel expansion and product innovation.