Helen of Troy reports Q2 adjusted EPS $1.31, consensus $1.07
Reports Q2 revenue $368.2M, consensus $368.5M. "We drove a 4.2 percentage point improvement in gross margin reflecting accretion from the Hydro Flask acquisition and our efforts to sweeten the mix and reduce our costs. We are very pleased with Hydro Flask's growth and performance, which contributed $29.1M of net sales during the quarter, fueling a 34.4% increase in net sales in our Housewares segment, and was accretive to adjusted operating margin. We saw growth and improved profitability from our Housewares and Health & Home segments, which offset significantly softer sales in our Beauty and Nutritional Supplements segments. Although Housewares experienced a slight decline in its core business in Q2, based on point-of-sale activity, we believe this segment remains on track to meet our expectations for the full year. Our Health & Home segment net sales grew 0.8%, with profitability continuing to improve from our cost savings efforts and focus on higher-margin business. Sales in our Beauty segment performed well below our expectations due to the weak retail environment and slower store traffic patterns. In addition, in an effort to build a platform for greater long-term profitability in Beauty, we made choices to rationalize lower-margin and non-strategic businesses."