Benzinga | Jan 6, 2022 09:48AM EST

Helen Of Troy Q3 Earnings Surpass Street View, Lifts FY22 Outlook

* Helen Of Troy Ltd (NASDAQ:HELE) reported a third-quarter FY22 sales decline of 2.02% year-on-year, to $624.88 million, beating the analyst consensus of $566.35 million.

* Core business net sales increased 0.4% Y/Y and increased 37.7% compared to Q3 FY20.

* Leadership Brand sales fell 0.2% Y/Y and rose 33.6% against Q3 FY20.

* Online channel sales decreased 7.4% and increased 23.7% from Q3 FY20.

* Total net sales revenue for the Housewares segment rose 10.7% Y/Y, Health & Home decreased 18.5%, and Beauty climbed 5.9%.

* Adjusted EPS of $3.72 beat the analyst consensus of $3.11.

* The gross profit margin decreased 130 basis points to 43.8%. The operating margin contracted 140 basis points to 14.4%, and operating income for the quarter declined 10.6% to $90 million.

* The company held $44.3 million in cash and equivalents as of November 30, 2021. Net cash used by operating activities for the nine months was $5.1 million. Inventory was $585.8 million.

* "Despite the impact of inflation and the EPA matter, our Core adjusted diluted EPS grew 3.0%," said CEO Julien Mininberg.

* Outlook: Helen Of Troy currently expects FY22 consolidated net sales of $2.095 billion - $2.115 billion (prior view $2.02 billion- $2.07 billion) and core net sales revenue of $2.06 billion - $2.08 billion (prior view $1.99 billion - $2.03 billion). Analysts predict the company to report sales of $2.08 billion.

* The company expects non-GAAP adjusted EPS of $11.73 - $11.93 (prior view $11.26 - $11.56) and Core adjusted EPS of $11.55 - $11.75 (previous view $11.05 - $11.35) versus the consensus of $11.21.

* Price action: HELE shares are trading higher by 0.37% at $241.37 on the last check Thursday.