Helen of Troy Ltd., the parent company of industry water bottle maker Hydro Flask and dozens of other consumer product brands, on Monday reported 3.4% revenue growth for its first quarter, ending on May 31.
Julien R. Mininberg, Chief Executive Officer, stated: “We are pleased to report a solid start to our current fiscal year.
“Strong focus on our strategic choices delivered net sales revenue growth of 3.4% and adjusted diluted EPS growth of 7.9%. Core business net sales for our leadership brands increased over 8% in the quarter, driven by incremental growth investments, successful new product introductions, online channel growth of over 30%, incremental distribution, and growth in international sales.
“The quarter was led by our Housewares segment, which increased sales by 16.3%, including growth in both Hydro Flask and OXO.”
Highlights for Hydro Flask called out in the earnings release include:
Segment Operating Results – First Quarter Fiscal 2018 Compared to First Quarter Fiscal 2017
- Housewares net sales increased by 16.3% driven by a 9.7% increase in core business net sales revenue, and a 7.3% contribution from acquisitions.
- The core business increase reflects growth for both Hydro Flask and OXO brands, with strong online channel sales, growth in bath, infant, and kitchen organization categories, and expanded international distribution, partially offset by lower promotional programs in the club channel, and a reduction in the kitchen electrics product line offerings.
- Segment growth from acquisitions represents an incremental half-month of operating results from Hydro Flask compared to the same period last year.
- Segment net sales were negatively impacted by approximately 0.6% from foreign currency fluctuations. GAAP operating margin was 18.4% compared to 18.3%.
- Adjusted operating margin decreased 0.2 percentage points primarily due to higher marketing, advertising and new product development expense, and the unfavorable impact of foreign currency fluctuations.
Other key metrics for parent company Helen of Troy:
- Consolidated net sales revenue increase of 3.4% driven by a core business increase of 2.2% and growth from acquisitions of 1.8%, partially offset by a decline of 0.6% from foreign currency fluctuations
- Consolidated gross profit margin decrease of 0.3 percentage points
- Consolidated SG&A as a percentage of sales improvement of 0.7 percentage points
- Pre-tax non-cash asset impairment charges of $36.0 million, compared to $7.4 million in the same period last year
- GAAP operating loss of $3.2 million, or (0.9)% of net sales, compared to operating income of $22.9 million, or 6.6% of net sales in the same period last year
- Non-GAAP adjusted operating income of $42.6 million, or 11.9% of net sales, compared to $44.6 million, or 12.8% of net sales in the same period last year
- Cash flow from operations of $41.7 million
- GAAP diluted EPS of $0.22 compared to $0.68 in the same period last year
- Non-GAAP adjusted diluted EPS of $1.37 compared to $1.27 in the same period last year
