Keep Your Eyes on this Stock: Helen of Troy Limited (NASDAQ: HELE)

Helen of Troy Limited (NASDAQ: HELE) stock observed trading -10.72% off 52-week high price. On the other end, the stock has been noted 70.47% away from low price over the last 52-weeks. The stock disclosed a move of 10.94% away from 50 day moving average and 9.42% away from 200 day moving average. Moving closer, we can see that shares have been trading 0.11% off 20-day moving average.

Helen of Troy Limited (HELE) recently stated results for the three-month period ended May 31, 2020.

Consolidated Operating Results – First Quarter Fiscal 2021 Contrast to First Quarter Fiscal 2020

Consolidated net sales revenue increased 11.8% to $420.8M contrast to $376.3M, driven by an Organic business net sales increase of $41.7M, or 11.1%, primarily reflecting growth in domestic brick and mortar and international sales in our Health and Home section, and consolidated online sales. Drybar Products net sales of $7.6M, or 2.0% of consolidated net sales revenue, also contributed to sales growth. These factors were partially offset by Organic net sales declines in the Housewares and Beauty sections primarily Because of COVID-19 store closures by key brick and mortar consumers, lower discretionary demand Because of high unemployment and consumer uncertainty, and about $4.8M, or 1.3%, from the unfavorable impact of foreign currency fluctuations.

Consolidated gross profit margin increased 1.8 percentage points to 42.6%, contrast to 40.8%. The increase is primarily Because of a favorable product mix within the Health and Home section and Organic Beauty business, the favorable impact of the Drybar Products acquisition, a favorable channel mix within the Housewares section, and lower air freight. These factors were partially offset by an unfavorable mix of Housewares sales within total consolidated net sales, an unfavorable product mix within the Housewares section, higher direct import sales, and the unfavorable impact of foreign currency on net sales.

Consolidated SG&A as a percentage of net sales increased by 0.9 percentage points to 29.0% of net sales contrast to 28.1%. The increase is primarily Because of the unfavorable impact of foreign currency exchange and forward contract settlements, higher freight and distribution expense, higher bad debt expense, higher product liability expense, and higher long-term performance-based incentive compensation expense. These factors were partially offset by the impact of cost reduction initiatives including temporary personnel, advertising and travel expense reductions Because of the uncertainty of COVID-19.

Consolidated operating income was $57.0M, or 13.5% of net sales, contrast to $47.2M, or 12.5% of net sales. The increase in consolidated operating margin primarily reflects a favorable product mix within the Health and Home and Beauty sections, a favorable channel mix within the Housewares section, the favorable impact that higher overall net sales had on operating leverage, and the impact of cost reduction initiatives including temporary personnel, advertising and travel expense reductions Because of the uncertainty of COVID-19. These factors were partially offset by an unfavorable mix of Housewares sales within total consolidated net sales, an unfavorable product mix in the Housewares section, higher bad debt expense, higher product liability expense, increased long-term performance-based incentive compensation expense, the net unfavorable impact of foreign currency fluctuations, and higher freight and distribution expense.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law. Among other things, the CARES Act included technical corrections to the effective date language in the Tax Cuts and Jobs Act enacted in December 2017 (the “Tax Act”) related to net operating loss carrybacks. The CARES Act effectively reversed the impact the Tax Act had on our net operating loss carryback, resulting in a tax benefit of $9.4M in the first quarter of fiscal 2021. For the three months ended May 31, 2020, income tax benefit as a percentage of income before income tax was 13.0% contrast to income tax expense of 7.6% for the same period last year, primarily Because of this benefit.

Net income was $60.3M, or $2.37 per diluted share on 25.4M weighted average shares outstanding, contrast to $40.7M, or $1.61 per diluted share on 25.2M weighted average diluted shares outstanding.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 20.0% to $76.0M contrast to $63.3M.

On an adjusted basis for the first quarters of fiscal 2021 and 2020, not including acquisition-related expenses, restructuring charges, tax reform, non-cash share-based compensation, and non-cash amortization of intangible assets, as applicable:

Adjusted operating income increased $11.8M, or 19.8%, to $71.1M, or 16.9% of net sales, contrast to $59.3M, or 15.8% of net sales. The 1.1 percentage point increase in adjusted operating margin primarily reflects a favorable product mix within the Health and Home and Beauty sections, a favorable channel mix within the Housewares section, the favorable impact that higher overall net sales had on operating leverage, and the impact of cost reduction initiatives, including temporary personnel, advertising and travel expense reductions Because of the uncertainty of COVID-19.

Adjusted income increased $12.1M, or 23.2%, to $64.2M, or $2.53 per diluted share, contrast to $52.1M, or $2.06 per diluted share. The 22.8% increase in adjusted diluted EPS was primarily Because of higher operating income in the Health and Home section. This was partially offset by lower operating income in the Housewares section, higher interest expense, and higher weighted average diluted shares outstanding.

USA based company Helen of Troy Limited moved with change of 1.60% to $177.31 with the total traded volume of 243552 shares in recent session versus to an average volume of 227.87K. HELE’s shares are at 55.71% for the quarter and driving a 29.67% return over the course of the past year and is now at -1.38% since this point in 2018.

 

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