Helen Of Troy Q3 Results Weak, Revises FY25 Outlook; Stock Down In Pre-market - Update

Helen of Troy

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(RTTNews) - Shares of Helen of Troy Ltd. (HELE) were losing around 4 percent in the pre-market activity on the Nasdaq after the consumer products company revised its fiscal 2025 outlook after reporting weak results in its third quarter. The third-quarter adjusted earnings, however, beat market estimates, but top line missed the view.

The outlook revision reflects the contribution from the Olive & June acquisition; as well as the unfavorable impact from the company's revised expectations for a weak winter and illness season globally, well below historical averages.

For the year, the company now expects earnings per share of $4.60 to $5.02, lower than previously expected $4.69 to $5.45.

Adjusted earnings would be in the range of $7.15 to $7.40, a decline of 19.8 percent to 16.9 percent from the prior year, compared to the previous range of $7.00 to $7.50.

Analysts on average expect the company to earn $7.19 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Further, Helen of Troy now expects adjusted EBITDA of $292 million to $295 million, compared to the previous range of $287 million to $297 million.

Consolidated net sales revenue is now projected in the range of $1.888 billion to $1.913 billion, which implies a decline of 5.8 percent to 4.6 percent from last year, while the previous range was a decline of 6.0 percent to 3.5 percent.

The Street is looking for net sales of $1.91 billion for the year.

The consolidated net sales outlook now includes an expected incremental net sales contribution of $17 million to $18 million from the Olive & June acquisition.

The company projects the unfavorable impact from the Company's revised expectations for a weak winter and illness season globally to be $25 million to $30 million for the full fiscal year and $15 million to $20 million in the fourth quarter of fiscal year 2025.

The Company now expects free cash flow in the range of $145 million to $155 million, compared to the previous range of $180 million to $200 million.

In its third quarter, Helen of Troy's profit decreased from the same period last year but beat the Street estimates.

The company's bottom line came in at $49.62 million, or $2.17 per share. This compares with $75.90 million, or $3.19 per share, in last year's third quarter.

Adjusted earnings were $2.67 per share for the period, compared to $2.79 last year. Analysts had expected the company to earn $2.58 per share.

The company's revenue for the quarter fell 3.4 percent to $530.71 million from $549.61 million last year. The Street was looking for net sales of $532.91 million for the quarter.

In pre-market activity on the Nasdaq, Helen of Troy shares were trading at $56.91, down 4 percent.

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