Helen of Troy Reports Lower Q1 Earnings Despite Increased Sales
Jul 13, 2006
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Personal care appliance maker Helen of Troy Limited reported sales increased 2.4 percent to U.S. $130.4 million for the first quarter ended May 31, 2006 versus sales of $127.4 million in the prior-year period.
First quarter net earnings declined 36.2 percent to $6.7 million, or $0.21 per diluted share, compared with $10.5 million, or $.33 per diluted share, in 2005.
Helen of Troy said increases in the cost of goods sold and reduced selling prices combined with increases in selling, and general and administrative expenses were the primary reasons for the decline.
The company reiterated its sales expectation for the year of $600 million to $620 million and earnings of $1.70 to $1.80 per diluted share and said sales for the rest of the year are expected to show year-over-year increases.
"We are also introducing new and innovative professional appliance products in late August. We have seen selective increases in our cost of goods for the past several quarters, and would caution that continuing increases in our product costs, or declines in consumer spending, could negatively impact our full year projections," Gerald J. Rubin, Chairman, CEO and president, said.
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