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HELE

Helen of Troy NasdaqGS:HELE Stock Report

Last Price

US$99.32

Market Cap

US$2.4b

7D

-9.8%

1Y

-55.8%

Updated

29 Sep, 2022

Data

Company Financials +
HELE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends0/6

HELE Stock Overview

Helen of Troy Limited provides various consumer products in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

Helen of Troy Limited Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Helen of Troy
Historical stock prices
Current Share PriceUS$99.32
52 Week HighUS$256.26
52 Week LowUS$97.92
Beta0.63
1 Month Change-21.06%
3 Month Change-40.11%
1 Year Change-55.79%
3 Year Change-37.58%
5 Year Change2.29%
Change since IPO2,771.90%

Recent News & Updates

Sep 20
Helen of Troy (NASDAQ:HELE) Has More To Do To Multiply In Value Going Forward

Helen of Troy (NASDAQ:HELE) Has More To Do To Multiply In Value Going Forward

What are the early trends we should look for to identify a stock that could multiply in value over the long term? One...

Jul 12

Helen Of Troy: Expect More Volatility With Retail Uncertainties

Helen of Troy reported Q1 earnings highlighted by weak guidance. The company is facing headwinds in a weaker consumer spending environment while retailers deal with a glut of inventory. Expect shares to remain volatile until there is confirmation that trends are improving. Helen of Troy Limited (HELE) controls a portfolio of consumer product brands covering areas like home goods, health & wellness, and beauty appliances. “Honeywell”, "OXO", "Braun", "PUR", and "Osprey" and others are recognized as market share leaders in their categories. From a long history of steady growth through acquisitions, the challenge for the company this year is the shifting macro-environment defined by record inflation pressuring consumer spending along with supply chain disruptions adding to costs. Indeed, shares are down by nearly 40% this year. The company just reported its latest quarterly result, which beat headline expectations but was clouded by a revision lower to full-year guidance, highlighting the ongoing uncertainties and confirming the poor sentiment towards the stock. Retailers cutting back on orders amid signs of an industry-wide inventory glut suggests continued operating difficulties. We expect the volatility in the stock to continue. HELE Key Metrics This was the company's fiscal 2023 Q1 report with EPS of $1.02, which declined from $2.31 in the period last year. Revenue of $508 million was down 6.1% year-over-year, although the figure here includes a boost from the company's December 2021 acquisition of "Osprey" and "Curlsmith" this April which together contributed $54 million in revenue. By this measure, the “organic” sales trends were weaker, declining by 15.5% y/y. The context considers what was an exceptionally strong comparison period in 2021 at the early stages of the pandemic recovery. The company was already expecting some slowdown this year, although inflationary cost pressures adding to expenses have been a new twist. The weaker top-line result-pushed SG&A as a percentage of revenue to 34.9% from 28.8% in the period last year. The trend is evident through a 48% y/y decline in operating income, while the adjusted operating margin at 13.6% was down by 3.9 percentage points. source: company IR It's worth mentioning Helen of Troy's relationship with Revlon Inc. (REV) which has made headlines with the company filing bankruptcy. In this case, Helen of Troy makes it clear that it only licenses the rights to produce Revlon branded hair appliances and is technically unaffiliated with the corporate group. With an understanding that Revlon plans to restructure, there is no impact expected on a day to day availability of the consumer branded products. Management highlighted some of the positives, including data suggesting its “leadership brands” have gained market share over the past year, which is part of the company's long-term strategy. Nevertheless, the takeaway was a recognition of the more difficult economic environment, with retail customers pulling back on spending. From the earnings conference call. Since our April earnings release, it has been well publicized that the macroeconomic environment has changed significantly. Consumers are shifting their buying patterns and adapting to a number of factors, including the impact of higher than expected inflation, and interest rates rising more rapidly than previously signaled by central bankers. In response, many of our major retail customers announced actions to rebalance their inventory, stemming from rapid revisions to their sales forecasts. Our revised fiscal year outlook reflects our current assessment of the impact from these new headwinds on our business. The result was a revision lower to full-year guidance. Helen of Troy now expects full-year non-GAAP EPS between $9.85 and $10.35 which compares to the old midpoint estimate closer to $12.85. In other words, the company now sees adjusted EPS declining in the range of 20.3% to 16.3% y/y, compare to a prior expectation for a small increase. As it relates to sales, the full-year target for total revenue in the range of $2.15 billion to $2.2 billion, implies a consolidated decline of 3.3% to 1.0%, also revised lower. The reversal in guidance explains much of the weakness in the stock, with shares selling off nearly 10% on the report. source: company IR HELE Stock Price Forecast The setup in Helen of Troy paints a mixed picture. Even with a more somber outlook, the company remains profitable, with its long-term outlook secured by a portfolio of high-quality brands that have earned a reputation for quality. Long term, the company is fine. This is good. source: company IR On the other hand, the near-term headwinds have broken the company's progression in its long-running “transformation” since 2014. Fiscal 2023 is set to be the first year over the period with a decline in growth and earnings. Compared to the strategy of looking for margin expansion, the effort now is to look for cost savings and maintain position. The greatest difficulty we see is that the operating trends are largely at the hands of retailers, who have been reporting a glut of inventory. This suggests it will take time for existing merchandise, including from Helen of Troy brands, to clear from shelves. From a high level, even in a scenario where the economy outperforms expectations, we see the segments and categories the company has exposure to as struggling over the next several quarters.

Shareholder Returns

HELEUS Consumer DurablesUS Market
7D-9.8%-2.1%-3.1%
1Y-55.8%-32.6%-21.5%

Return vs Industry: HELE underperformed the US Consumer Durables industry which returned -32.7% over the past year.

Return vs Market: HELE underperformed the US Market which returned -20.3% over the past year.

Price Volatility

Is HELE's price volatile compared to industry and market?
HELE volatility
HELE Average Weekly Movement6.1%
Consumer Durables Industry Average Movement6.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: HELE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HELE's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19682,146Julien Mininberghttps://www.helenoftroy.com

Helen of Troy Limited provides various consumer products in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments: Home & Outdoor, Health & Wellness, and Beauty. The Home & Outdoor segment offers food preparation tools and gadgets, storage containers, and organization products; coffee makers, grinders, manual pour overs, and tea kettles; household cleaning products, shower organization, and bathroom accessories; feeding and drinking products, child seating products, cleaning tools, and nursery accessories; insulated water bottles, hydration packs, drinkware, mugs, food containers, lunch containers, insulated totes, soft coolers, and accessories; and technical and outdoor sports packs, travel packs, luggage, daypacks, and everyday packs.

Helen of Troy Limited Fundamentals Summary

How do Helen of Troy's earnings and revenue compare to its market cap?
HELE fundamental statistics
Market CapUS$2.38b
Earnings (TTM)US$191.39m
Revenue (TTM)US$2.19b

12.4x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HELE income statement (TTM)
RevenueUS$2.19b
Cost of RevenueUS$1.25b
Gross ProfitUS$943.77m
Other ExpensesUS$752.38m
EarningsUS$191.39m

Last Reported Earnings

May 31, 2022

Next Earnings Date

Oct 05, 2022

Earnings per share (EPS)7.98
Gross Margin43.09%
Net Profit Margin8.74%
Debt/Equity Ratio81.5%

How did HELE perform over the long term?

See historical performance and comparison