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Helen of Troy Limited (HELE+3.39%) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing reports a decrease in consolidated net sales revenue by 3.4% to $530.7 million compared to $549.6 million in the same quarter of the previous year. This decrease is attributed to a decline in the Beauty & Wellness segment due to softer consumer demand and increased competition.
The Home & Outdoor segment reported an increase in net sales revenue by 4.3% to $246.1 million, driven by growth in all three brands and strength in international markets.
Operating income decreased by 29.7% to $75.1 million, with an operating margin of 14.2%, down from 19.5% in the previous year. This decline is primarily due to the absence of a gain from the sale of the El Paso facility recognized in the prior year.
Net income for the quarter was $49.6 million, down from $75.9 million in the previous year. Diluted earnings per share decreased to $2.17 from $3.19, reflecting lower operating income and an increased effective tax rate.
The company reported cash provided by operating activities of $78.2 million, compared to $232.5 million in the same period last year, primarily due to increased payments for inventory and taxes.
Helen of Troy continues to implement Project Pegasus, a global restructuring plan aimed at improving efficiency and reducing costs. The company incurred $3.5 million in pre-tax restructuring costs during the quarter.
The filing also notes the completion of the acquisition of Olive & June, LLC, an omni-channel nail care brand, funded with cash on hand and borrowings from the company's revolving credit facility.
Helen of Troy's management remains focused on executing its Elevate for Growth Strategy, which aims for continued organic sales growth and margin expansion through brand investment and international growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Helen of Troy Limited quarterly 10-Q report dated January 8, 2025. To report an error, please email earnings@qz.com.