EL PASO, Texas (BRAIN) — Helen of Troy reported net sales declined 6.1% year-over-year for the first quarter 2023 but its Home & Outdoor group grew 21%.
The Home & Outdoor group includes brands Osprey, which was acquired at the end of last year, and Hydro Flask. Helen of Troy also is the parent company of housewares, and health and beauty product brands.
Net sales for the quarter ending May 31 were $508.1 million, compared with $541,223 in the first quarter of 2022. Home & Outdoor net sales increased to $234,263, compared with $193,644 at the same time last year.
Despite the net sales decline, CEO Julien R. Mininberg said the quarter's results were stronger than expected.
"The sales comparison is our toughest quarterly comparison of the year and represents strong growth over our pre-COVID base of fiscal 2020," Mininberg said. "Osprey and Curlsmith performed well and in line with our expectations. As noted in our April earnings call, we did see consumer buying patterns begin to change in the quarter, resulting in a slowdown in demand in some categories, partially offset by retailer orders intended to replenish prior consumption and/or raise holdings in anticipation of price increases."
With consumers changing buying habits because of inflation and rising interest rates, he said many Helen of Troy retailers are adjusting inventory. "We have lowered our sales and EPS outlooks for fiscal 2023, reflecting our current assessment of the impact of these new headwinds on our business," Mininberg said.
Net income for the quarter fell 57%, from $57 million to $24.6 million year-over-year. Earnings per share was $1.02, compared with $2.31, decreasing 56%.
Helen of Troy's corporate headquarters is in El Paso, Texas, and its stock is traded on the NASDAQ under the HELE symbol. Stock quote at Marketwatch.com.
