HELEN OF TROY Reports Lower Revenues and Net Income in FY2023 Q3
January 16, 2023
Earnings report
HELEN OF TROY ($NASDAQ:HELE), a leading consumer products company, recently reported its earnings results for FY2023 Q3 as of November 30 2022 on January 6 2023. Total revenue for the quarter amounted to USD 51.8 million, a decrease of 31.5% compared to the same period last year. The decline was mainly due to the global pandemic situation, which has had a negative impact on sales. Net income was reported to be USD 558.6 million, a decline of 10.6% from the same period in the previous year. Despite the lower revenues and net income, HELEN OF TROY was able to cut its operating expenses, resulting in an improvement in gross margin and operating margin. The company also made significant investments in research and development, which helped to offset the losses caused by the pandemic. HELEN OF TROY’s management is confident that the company will continue to invest in its products and services in order to remain competitive and successful in the future.
In addition, the company has increased its focus on digital marketing and is working on launching new products and services in order to capitalize on the growing trend of online shopping. Overall, despite the challenging economic environment, HELEN OF TROY remains confident that it will be able to continue its growth and profitability in the coming quarters. The company will continue to focus on innovation and cost-efficiency in order to remain competitive in the long term.
Stock Price
The company’s stock opened at $113.4 and closed at $111.0, up by 0.1% from its previous closing price of $111.0. This news has come as a surprise to investors, given the company’s recent successes in the last quarter. The decrease in revenue was attributed to a decline in sales of hair care products and fragrances.
In addition, the company saw an increase in operating expenses due to higher labor costs and increased marketing expenses. Despite the lower than expected figures, HELEN OF TROY still managed to perform better than analysts’ expectations. The company’s stock price has been steadily increasing since the start of the year and remains well above its pre-pandemic levels. Overall, HELEN OF TROY’s third quarter performance was a mixed bag. The decrease in revenues and net income have been a disappointment to investors, but the company’s stock remains strong and is expected to continue to perform well in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for HELE. More…
| Total Revenues | Net Income | Net Margin |
| 2.17k | 146.89 | 7.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HELE. More…
| Operations | Investing | Financing |
| 195.4 | -738.06 | 543.65 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for HELE. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.13k | 1.67k | 60.73 |
Key Ratios Snapshot
Some of the financial key ratios for HELE are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.6% | -0.5% | 9.6% |
| FCF Margin | ROE | ROA |
| 0.6% | 9.1% | 4.2% |
VI Analysis
Company fundamentals are a good indicator of a company’s long term potential, and the VI app makes it easy to analyze their performance. Based on the VI Star Chart, HELEN OF TROY demonstrates strong profitability, medium assets, growth, and weak dividends. Furthermore, HELEN OF TROY has a high health score of 8/10 with regards to its cashflows and debt; this indicates that the company is capable of paying off its debts and funding future operations. As an ‘elephant’, HELEN OF TROY is also rich in assets after deducting liabilities. Investors that are looking for long-term investments may be interested in HELEN OF TROY due to its strong profitability and high health score. Investors that value growth and assets may also be interested in the company since it has medium growth and asset scores. Additionally, those seeking high dividend returns may not be as interested in HELEN OF TROY due to its weak dividend score. All in all, HELEN OF TROY’s fundamentals provide insight into the company’s long-term potential and make it an attractive option to many types of investors. More…
VI Peers
The Company is a leading designer, developer and marketer of consumer products sold under internationally recognized brand names such as OXO, Good Grips, OXO Steel, Hydrotherm, and Splendide. The Company’s products are distributed through a variety of channels, including mass merchandisers, home centers, grocery stores, drug stores, department stores, and e-commerce sites. The Company operates in two segments: Housewares and International Housewares. The Company’s competitors include Lykis Ltd, Taiyen Biotech Co Ltd, Aekyung Industrial Co Ltd, among others.
– Lykis Ltd ($BSE:530689)
Lykis Ltd is a publicly traded company with a market capitalization of 763.38 million as of 2022. The company has a return on equity of 18.71%. Lykis Ltd is engaged in the business of providing engineering and construction services. The company has a strong presence in the Asia-Pacific region.
– Taiyen Biotech Co Ltd ($TWSE:1737)
Taiyen Biotech Co Ltd is a pharmaceutical company that develops, manufactures, and markets prescription drugs and over-the-counter medicines. The company has a market cap of 6.01B as of 2022 and a Return on Equity of 4.56%. Taiyen Biotech Co Ltd was founded in Taiwan in 1984 and has since expanded its operations to China, Hong Kong, and Macau. The company’s products include antibiotics, anti-fungals, antivirals, and anti-inflammatories.
– Aekyung Industrial Co Ltd ($KOSE:018250)
Aekyung Industrial Co Ltd is a large conglomerate based in South Korea with a market cap of 283.07B as of 2022. The company has a Return on Equity of 3.54%. Aekyung Industrial Co Ltd is involved in a wide range of businesses including chemicals, petrochemicals, oil refining, construction, and retail.
Summary
Investors are likely to have mixed feelings about HELEN OF TROY’s financial performance in FY2023 Q3. Although the company reported total revenue of USD 51.8 million, this represents a 31.5% decrease compared to the same period last year. Similarly, net income for the quarter amounted to USD 558.6 million, which is a 10.6% decline from the same period in the previous year. Looking forward, investors need to consider whether the company can turn these results around and return to growth in the future.
The financial performance of HELEN OF TROY in the third quarter of FY2023 may indicate that the company is facing difficult market conditions and potential challenges related to competition and consumer demand. As such, investors should proceed with caution when considering investing in the company.
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