Key Takeaways
- Helen of Troy's first quarter earnings and revenue exceeded analysts' estimates.
- The gains came despite what the firm said was lower consumer demand and shifting buying patterns.
- The results boosted shares to their highest level since last August.
Shares of Helen of Troy Ltd. (HELE) soared over 15% in early trading on Monday after the consumer products firm posted better-than-anticipated fiscal 2024 first quarter results, citing cutting inventory, improved working capital, and upcoming restructuring.
CEO Julien Mininberg said the results exceeded the company’s expectations “despite continued pressure on certain categories from lower consumer demand and shifting buying patterns.”
Mininberg explained that Helen of Troy improved free cash flow by cutting inventory and improving working capital. He added that the company’s restructuring plan announced in the fourth quarter “remains on track.”
The maker of Vicks VapoRub and PUR water filters reported earnings per share (EPS) of $1.94, with revenue down 6.6% to $474.7 million. Both were more than analysts expected. Gross profit margin was up 380 basis points (bps) to 45.4%, and operating margin rose to 8.6% from 6.7%.
Helen of Troy reiterated its outlook for the full fiscal year of EPS of $8.50 to $9. Its shares skyrocketed to their highest level in 11 months following the news.