Helen of Troy, the parent company of Osprey and Hydro Flask, delivered 4.3% net sales growth across its Home & Outdoor brands in its latest quarterly results as it warned that pressure on lower-income consumers will impact sales results in 2025.
“Our third-quarter results were within our top- and bottom-line expectations even as we continued to navigate a difficult consumer spending environment,” said CEO Noel M. Geoffroy in a statement.
For the quarter ended Nov. 30, Helen of Troy’s Home & Outdoor segment increased by $10.2 million to $246.1 million compared to the same quarter the year before. On its Wednesday morning earnings presentation, Geoffroy highlighted new products such as Osprey’s Daylite Travel line and Hydro Flask’s Tumbler Sip Set.
The sales increase was driven by net gains in retailer distribution in the insulated beverageware and home categories, higher international sales in new and expanded retailer distribution in the insulated beverageware category, strong demand for technical packs, and an increase in club channel sales in the insulated beverageware category, according to a news release.
“These factors were partially offset by softer overall consumer demand, lower replenishment orders from retail customers, a decrease in club channel sales in the home category, and continued competition in the insulated beverageware category,” it said.
Spending Habits Vary Between Low- and High-Income Consumers
Geoffroy said holiday spending was up for higher-income consumers, but lower-income consumers are struggling, and thus are prioritizing necessities over discretionary goods.
“We also continue to see the widely reported bifurcation in spending between higher-income and lower-income households, while holiday spending overall is up year over year, driven by higher-income consumers purchasing higher priced items, while lower-income consumers continue to struggle prioritizing necessities over discretionary goods,” she said.
“We are flexing our portfolio and go-to-market execution to meet our consumers where they are with relevant product assortments and brand messaging.”
Fiscal 2025 Outlook
Positive results in Home & Outdoor were offset by softer sales among its Wellness brands, leading to a 3.4% decline to $530.7 million. Net income was $49.6 million, compared to $75.9 million the previous year.
Helen of Troy adjusted its outlook for fiscal 2025, projecting results from a 0.7% decline to 6% growth in its Home & Outdoor group of brands. It anticipates overall net sales to decrease by between 5.8% and 4.6%.
“We believe we are building a stronger, more collaborative, data-driven and disciplined Helen of Troy that is better positioned to maximize the potential of our brands globally,” Geoffroy said.
