EL PASO, Texas — Helen of Troy, a marketer of brand-name products, including Vidal Sassoon, Pro Beauty Tools, Bed Head and Brut, posted a boost in first-quarter sales and is off to a “solid start” for fiscal year 2014, the company announced.
Net sales revenue increased 1.4% to $304.5 million compared with $300.2 million in the first quarter of fiscal year 2013.
Net income was $14.4 million, or 45 cents per diluted share, which compares with net income of $23.5 million, or 74 cents per diluted share, in the year-ago period.
“We are off to a solid start in fiscal year 2014. Growth in our housewares and healthcare/home environment segments led to a net sales revenue increase for the company, and we managed expenses well to deliver a 6.5% increase in adjusted EBITDA (EBITDA without non-cash asset impairment charges and non-cash share-based compensation) and a 10.8% increase in adjusted diluted EPS (diluted earnings per share without non-cash asset impairment charges),” stated Gerald Rubin, chairman, CEO and president.
“We continue to focus on innovation and are excited about our upcoming product launches in the baking and food storage categories in our housewares segment and in the water filtration portion of our healthcare/home environment segment. Our balance sheet remains strong and provides us with excellent flexibility to pursue our growth strategies. We remain comfortable with our outlook and in our ability to deliver on the objectives we have set for ourselves this year,” Rubin added.
For fiscal year 2014, the company expects net sales revenue in the range of $1.29 billion to $1.32 billion. The company expects adjusted diluted EPS to be in the range of $3.50 to $3.60, which is consistent with the company’s previous guidance. The earnings guidance reflects the negative impact of the difficult retail environment, a conservative approach to the cold/cough/flu season, product cost increases across all segments and an increase in non-cash compensation expense for the company’s CEO.
In addition, the company expects capital expenditures for fiscal year 2014 to be in the range of $40 million to $45 million, with approximately $33 million related to the completion of its new 1.3 million square foot distribution center in Olive Branch, Miss.