Small appliance maker Helen of Troy Limited reported that net sales revenue in the first quarter of its 2015 fiscal year was up 2.4%. Net sales reached a record $311.8 million, up from $304.5 million in the first quarter of the previous fiscal year (fiscal year 2014). The company's fiscal first quarter ended May 31, 2014.
Gross profit margin was 38.3% in the first quarter of fiscal year 2015, compared to 39.5% in 1Q of FY 2014.
The company said the decrease reflects:
• increased promotional program costs
• a revenue increase in the lower margin Healthcare/Home Environment segment
• a lower margin sales mix in the Housewares and Healthcare/Home Environment segments
• general product cost increases
Operating income in 1Q of FY 2015 was $23.1 million, from 1Q FY 2014's $20.6 million. Net income was $16.4 million, from $14.4 million in the previous year's first quarter.
Adjusted EBITDA (EBITDA excluding non-cash asset impairment charges and non-cash share-based compensation) was $41.9 million, from $44.6 million in the same period last year.
On an adjusted basis for the first quarter of fiscal 2015, excluding non-cash asset impairment charges in both periods:
• Adjusted operating income was $32.1 million compared to $32.7 million in the previous year's quarter.
• Adjusted income was $24.6 million from $26.4 million
CEA Julien R. Mininberg called it a solid start to the fiscal year.
"During the quarter, we continued our efforts to transform our organization and reinvigorate our culture," Mininberg said. "We also advanced our goal of accelerating and sustaining organic growth by investing prudently in our strongest businesses. We saw a double digit increase in our Healthcare/Home Environment segment revenues and a solid increase in our Housewares segment revenues on top of strong gains in the prior year in both of these segments."
Mininberg added: "Our Personal Care segment continued to deliver strong cash flow; however as anticipated, sales trailed the prior year quarter. To unlock more of this segment’s cash flow generation capability and achieve organic growth, we are focused on increasing product innovation, adding additional talent and redirecting our existing resources to the strongest opportunities.”
Helen of Troy continues to expect net sales revenue in FY 2015 in the range of $1.325 to $1.375 billion.
Helen of Troy is a multiple-brand company. Small appliance brands include:
● Helen of Troy
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