Helen Of Troy Q2 Profit Rises - Update

(RTTNews) - Consumer products company Helen of Troy Ltd (HELE), Wednesday said its second-quarter profit improved from a year ago, driven mainly by strong growth at healthcare/home environment segment. Earnings for the quarter were in line with Wall Street expectations.

El Paso, Texas-based Helen of Troy's second-quarter profit rose to $23.32 million from $22.97 million last year. Earnings, on a per share basis, remained flat at $0.72, due to higher number of shares outstanding. On average, three analysts polled by Thomson Reuters expected earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.

Helen of Troy, which makes personal-care and household-products, said revenues for the second quarter grew 11.1 percent to $319.39 million from $287.41 million last year.

Chief Executive Gerald Rubin said, "We are pleased to report solid performance in the second quarter, highlighted by sales growth across all our operating segments and increased consolidated adjusted EBITDA and net income despite product cost and currency headwinds."

Healthcare/home environment revenues grew 20.4 percent to $133.0 million, while personal care revenues grew 3.4 percent to $116.2 million. Housewares segment rose 8.7 percent.

Healthcare/home environment segment growth reflects refined promotion and marketing strategy and favorable weather conditions in Europe.

Gross margin for the quarter dropped to 38.6 percent from 40.7 percent last year, hurt by foreign currency exchange rates, product cost increases across all segments and product mix.

However, on a positive note, selling, general and administrative expenses, as a percent of sales, dropped to 29.1 percent from 30 percent last year.

Looking forward to the fiscal year 2014, the company continues to expect earnings of $3.13 to $3.23 per share, adjusted earnings of $3.50 to $3.60 per share and revenues of $1.29 billion to $1.32 billion. Analysts currently estimate earnings of $3.53 per share for the year.

HELE closed Wednesday's trading at $43.53, down $0.15 or 0.34%, on the Nasdaq. In after hours, the stock gained $0.17 or 0.39%.