01.11.18
Helen of Troy Limited reported results for the three-month period ended Nov. 30, 2017. Total net sales rose 8.6% to $444.4 million. However, beauty net sales decreased 2.8% to $107.7 million primarily reflecting a decline in the personal care category, which offset solid growth in both retail and professional appliance sales, particularly to online retail customers.
Julien R. Mininberg, chief executive officer, stated: “We achieved solid results in the third quarter, with consolidated sales growth of 1.9% driven primarily by new product introductions, incremental distribution, and growth in international sales. Our Leadership Brands continue to perform well, gaining 6.4% with each of the seven growing during the quarter.
“Growth in the online channel continued to be a key driver, gaining 18.6% to now represent 17.4% of total sales for the third quarter. We drove gross margin expansion through a better mix of higher-margin sales, and increased consolidated adjusted operating margin as we benefitted from greater efficiencies from our shared services platform, even as we continued to invest in our brand portfolio and digital capabilities.”
Mininberg added, “In our Beauty segment, sales and profitability benefitted from new product introductions in the appliance category, which was offset by continued challenges in the personal care category. Subsequent to the end of the third quarter, we completed the sale of the Nutritional Supplements business. The sale of Healthy Directions demonstrates our willingness to sharpen our portfolio and allows us to focus even more resources on our Leadership Brands.”
On Dec. 20, 2017, the company completed the sale of Healthy Directions LLC and its subsidiaries to Direct Digital, LLC. The purchase price from the sale is comprised of $46 million in cash paid at closing and a supplemental payment with a target value of $25 million, payable on or before Aug. 1, 2019.
Julien R. Mininberg, chief executive officer, stated: “We achieved solid results in the third quarter, with consolidated sales growth of 1.9% driven primarily by new product introductions, incremental distribution, and growth in international sales. Our Leadership Brands continue to perform well, gaining 6.4% with each of the seven growing during the quarter.
“Growth in the online channel continued to be a key driver, gaining 18.6% to now represent 17.4% of total sales for the third quarter. We drove gross margin expansion through a better mix of higher-margin sales, and increased consolidated adjusted operating margin as we benefitted from greater efficiencies from our shared services platform, even as we continued to invest in our brand portfolio and digital capabilities.”
Mininberg added, “In our Beauty segment, sales and profitability benefitted from new product introductions in the appliance category, which was offset by continued challenges in the personal care category. Subsequent to the end of the third quarter, we completed the sale of the Nutritional Supplements business. The sale of Healthy Directions demonstrates our willingness to sharpen our portfolio and allows us to focus even more resources on our Leadership Brands.”
On Dec. 20, 2017, the company completed the sale of Healthy Directions LLC and its subsidiaries to Direct Digital, LLC. The purchase price from the sale is comprised of $46 million in cash paid at closing and a supplemental payment with a target value of $25 million, payable on or before Aug. 1, 2019.
