Net Income Declines 10.8% While Revenue Drops by 5.7%
Helen of Troy Limited,(HELE) a leading global consumer p roducts company, has released its financial results for the second quarter of fiscal year 2024, ended August 31, 2023. The company reported a net income of $27.4 million for the quarter, representing 5.6% of total sales revenue, which amounted to $491.6 million. These results indicate a 10.8% decrease in net income compared to the same period last year when the company reported a net income of $30.7 million on $521.4 million in revenue.
The sales revenue for the second quarter of 2023 dropped by 5.7% compared to the same period in 2022, reflecting challenges faced by Helen of Troy Limited in a competitive market.
Consolidated Financial Performance
Helen of Troy's condensed consolidated statements of income for the three months ended August 31, 2023, reveal the following financial data:
Net Income and Revenue
- Net Income: The net income for the three months ended August 31, 2023, was $27.4 million, accounting for 5.6% of total sales revenue.
- Revenue: The company's sales revenue for the quarter totaled $491.6 million, a 5.7% decrease from the previous year's $521.4 million.
Gross Profit and Operating Income
- Gross Profit: Helen of Troy reported a gross profit of $229.7 million, representing a gross margin of 46.7%.
- Operating Income: The company's operating income for the quarter was $46.8 million, equivalent to 9.5% of total sales revenue.
- Selling, General, and Administrative Expenses (SG&A): SG&A expenses amounted to $179.2 million, representing 36.5% of total sales revenue.
- Restructuring Charges: Helen of Troy incurred restructuring charges of $3.6 million, accounting for 0.7% of sales revenue.
- Interest Expense: The company reported interest expenses of $13.7 million, equivalent to 2.8% of total sales revenue.
Income Tax
- Income Before Income Tax: Helen of Troy's income before income tax was $33.3 million, accounting for 6.8% of total sales revenue.
- Income Tax Expense:The company incurred an income tax expense of $5.96 million, representing 1.2% of total sales revenue.
Diluted Earnings per Share (EPS)
- Diluted EPS: The diluted earnings per share for the quarter stood at $1.14, based on weighted average shares of common stock amounting to 24,041.
Six Months Ended August 31, 2023
For the six months ended August 31, 2023, Helen of Troy Limited reported the following financial results:
Net Income and Revenue
- Net Income: The company reported a net income of $49.96 million for the first half of fiscal 2024, representing 5.2% of total sales revenue.
- Revenue: Total sales revenue for the first six months of 2023 was $966.2 million, reflecting a 6.1% decline compared to $1.03 billion during the same period in 2022.
Gross Profit and Operating Income
- Gross Profit: The gross profit for the first half of 2023 was $445.3 million, with a gross margin of 46.1%.
- Operating Income: Helen of Troy reported an operating income of $87.5 million for the first six months of 2023, accounting for 9.1% of total sales revenue.
- Selling, General, and Administrative Expenses (SG&A): SG&A expenses for the period amounted to $346.8 million, representing 35.9% of total sales revenue.
- Restructuring Charges: The company incurred restructuring charges of $10.97 million, accounting for 1.1% of sales revenue.
- Interest Expense: Helen of Troy reported interest expenses of $27.7 million, equivalent to 2.9% of total sales revenue.
Income Tax
- Income Before Income Tax: The income before income tax for the first six months of 2023 was $60.07 million, representing 6.2% of total sales revenue.
- Income Tax Expense:The company incurred an income tax expense of $10.1 million, representing 1.0% of total sales revenue.
Diluted Earnings per Share (EPS)
- Diluted EPS: The diluted earnings per share for the first half of 2023 stood at $2.07, based on weighted average shares of common stock amounting to 24,088.
Sales Revenue by Segment and Geographic Region
Helen of Troy's sales revenue is segmented by product category and geographic region:
Segment Net Sales Revenue
- Home & Outdoor: Sales revenue for Home & Outdoor products in the second quarter of 2023 was $240.6 million, while Beauty & Wellness products generated $280.8 million, resulting in total net sales revenue of $491.6 million. Organic business performance within these segments faced challenges, with a decline of 0.5% and 10.7%, respectively.
- Domestic vs. International: The domestic market accounted for $388.0 million in sales revenue, representing 78.9% of the total, while international sales revenue reached $103.5 million, accounting for 21.1% of total sales revenue in the second quarter of 2023.
The company experienced a 10.8% decrease in net income and a 5.7% decline in revenue during the second quarter, reflecting the competitive nature of its industry and global economic challenges. Helen of Troy Limited remains committed to navigating these challenges and sustaining its position as a leader in consumer products.
For more detailed financial information and analysis, please refer to the complete financial statements and management's discussion and analysis available on Helen of Troy Limited's official website and in its regulatory filings.