LONDON, UK / ACCESSWIRE / July 14, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Helen of Troy Ltd (NASDAQ: HELE), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=HELE, following the Company's announcement of its first quarter fiscal 2018 earnings results on July 10, 2017. The personal and household products Company reported a y-o-y gain in revenue and reaffirmed its annual guidance. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the three months ended May 31, 2017, Helen of Troy's consolidated net sales revenue increased 3.4% to $359.6 million compared to $347.9 million in Q1 FY17, reflecting an increase in core business net sales revenue of 2.2% and growth from acquisitions of 1.8%, partially offset by a decline of 0.6% from foreign currency fluctuations. The Company's revenue numbers exceeded analysts' estimates of $354 million.

For Q1 FY18, Helen of Troy's consolidated gross profit margin decreased 0.3% to 43.5% compared to 43.8% in Q1 FY17. The decline in consolidated gross profit margin was primarily due to higher promotional spending with customers and the unfavorable impact of foreign currency fluctuations. The Company's consolidated SG&A improved by 0.7% to 34.4% of net sales compared to 35.1% in the prior year's same quarter.

Helen of Troy's GAAP operating loss was $3.2 million, or (0.9)% of net sales, in Q1 FY18, compared to operating income of $22.9 million, or 6.6% of net sales, in Q1 FY17. The Company noted that the operating income (loss) includes pre-tax non-cash impairment charges of $36.0 million in the reported quarter compared to $7.4 million recorded in the prior year's same quarter. Helen of Troy's adjusted operating income was $42.6 million, or 11.9% of net sales, in Q1 FY18 compared to $44.6 million, or 12.8% of net sales, in Q1 FY17.

Helen of Troy posted net income of $5.9 million, or $0.22 per diluted share, for Q1 FY18 compared to $19.0 million, or $0.68 per diluted share, for Q1 FY17. The Company's net income included non-cash asset impairment charges of $23.1 million for the reported quarter compared to $5.1 million for the prior year's same quarter. Helen of Troy's earnings adjusted for asset impairment costs and amortization costs totaled $37.4 million, or $1.37 per diluted share, compared to $35.9 million, or $1.27 per diluted share, in Q1 FY17.

Segment Operating Results

During Q1 FY18, Helen of Troy's Housewares segment net sales surged 16.3% to $98.43 million, driven by a 9.7% increase in core business net sales revenue, and a 7.3% contribution from acquisitions. The core business increase reflects growth for both Hydro Flask and OXO brands. The segment's GAAP operating margin totaled 18.4% for the reported quarter versus 18.3% in the prior year's comparable quarter.

Helen of Troy's Health & Home core business net sales increased 3.4% to $150.27 million in Q1 FY18, reflecting incremental distribution and shelf space gains with existing customers as well as growth in international sales. The segment's GAAP operating margin was 9.7% compared to 6.6% the prior year's corresponding quarter. Adjusted operating margin increased 1.0% on a y-o-y basis.

For Q1 FY18, Helen of Troy's Beauty core business net sales decreased 1.4% to $79.29 million, primarily reflecting declines in the personal care category due to competitive conditions, partially offset by solid growth in professional appliance sales particularly in the online channel. The segment recorded negative GAAP operating margin of 1.6% compared to a positive operating margin of 3.8% in the year-ago period. The Beauty core business adjusted operating margin declined 4.2 percentage points on y-o-y basis.

Helen of Troy's Nutritional Supplements core business net sales totaled $31.62 million, down 12.0% on a y-o-y basis, reflecting a decline in auto delivery revenues resulting primarily from the transition to new order management and customer relationship management systems. The segment's operating loss was $34.6 million in the reported quarter compared to $5.3 million in the year earlier same quarter. The segment's adjusted operating loss was $0.6 million in Q1 FY18 compared to adjusted operating income of $2.3 million in Q1 FY17.

Helen of Troy stated that it is evaluating strategic alternatives for Nutritional Supplements segment, which could include divestiture, investments in online interface and e-commerce platforms, restructuring or realignment programs, and consolidating operations and functions.

Balance Sheet Highlights

As of May 31, 2017, Helen of Troy's cash and cash equivalents totaled $16.51 million compared to $23.12 million as on May 31, 2016. The Company's total short- and long-term debt was $453.8 million at the end of Q1 FY18 compared to $587.5 million at the end of Q1 FY17, reflecting a net decrease of $133.7 million.

Helen of Troy's accounts receivable turnover was 54.4 days in the reported quarter compared to 54.1 days in the prior year's same quarter. The Company's inventory totaled $312.0 million compared to $319.2 million in Q1 FY17, while inventory turnover was 2.8 times in both periods. Helen of Troy's cash flow from operations was $41.7 million in the reported quarter.

Annual Outlook

For fiscal 2018, Helen of Troy reiterated its guidance of consolidated net sales revenue in the range of $1.56 billion to $1.60 billion. The Company's net sales outlook reflects the following expectations: Housewares net sales growth of 11% to 13%; Health & Home net sales growth in the mid-single digits; Beauty net sales decline in the mid-single digits; and Nutritional Supplements net sales in-line with FY17.

Helen of Troy is estimating consolidated GAAP diluted EPS of $4.54 to $4.87 and adjusted diluted EPS in the range of $6.50 to $6.90 for the fiscal year.

Stock Performance

Helen of Troy's share price finished yesterday's trading session at $91.95, advancing 1.04%. A total volume of 125.67 thousand shares has exchanged hands. The Company's stock advanced 1.16% in the last three months. Additionally, the stock gained 8.88% since the start of the year. Shares of the Company have a PE ratio of 18.19 and currently have a market cap of $2.49 billion.

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