Helen of Troy: Q2 driven by stronger orders, improved gross profit margin
EL PASO, Texas — Helen of Troy, a developer and marketer of consumer products — including such personal care brands as Vidal Sassoon, Sure, Pert and Brut — reported that second-quarter sales and earnings surpassed its revised guidance fueled by stronger orders late in the quarter and improved gross profit margin in August.
Net sales revenue grew to $319.9 million compared with $319.4 million in the year-ago period.
Net income was $18.8 million, or 65 cents per diluted share, compared with $23.3 million, or 72 cents per diluted share, in the year-ago period.
Gross profit margin was 41.8% compared with 38.6% for the same period last year. This increase reflects two months of operations of the Nutritional Supplements segment, which had a favorable impact of 2.6 percentage points on the consolidated gross profit margin. In addition, gross profit margin for the core business improved by 0.6 percentage points compared to the same period last year because of a better product sales mix.
“Our sales and earnings surpassed our revised guidance driven by stronger orders late in the quarter and better gross profit margin in August. Our acquisition of Healthy Directions contributed positively as planned. During the quarter, we made progress on our strategies that focus on product innovation, increased collaboration across our businesses and brands, and improved efficiency in many aspects of our organization,” said Julien R. Mininberg, CEO. “As an example, we have added new leadership in our global shared services who are spearheading the transformation of our distribution and sourcing operations. Executing our key strategies, combined with our strong balance sheet, allows us to invest in organic growth, improve our business and operations, while evaluating compelling acquisitions and repurchasing our common shares. This is positioning us to achieve our long-term goal of delivering consistent sales growth at increasing rates of profitability.”
As previously reported, in June the company acquired Healthy Directions, a provider of vitamins, minerals and supplements, for $195.9 million.