Personal care appliance maker Helen of Troy reported that second quarter sales declined 7.7 percent to U.S. $130,389,000, versus sales of $141,229,000 in the same period of the prior year. Second quarter net earnings were down 49.9 percent to $9,452,000, or $0.30 per diluted share, from $18,848,000, or $0.57 per diluted share for the same period a year earlier.
Helen of Troy Limited, based in El Paso, Texas, U.S., also reported that sales for the 6-month period ended August 31, 2005, increased 3.8 percent to $257,781,000 versus $248,250,000 for the previous year. Net earnings for the first half of this year were $19,999,000, or 63 cents per diluted share, versus $33,331,000, or $1.02 per diluted share in the same period of last year, for a decline of 40 percent.
Helen of Troy said decreases in sales in its personal care segment, along with increases in selling, general and administrative expenses during the quarter, were the primary reasons for the net earnings decline.
"Second quarter sales and earnings were less than we had expected," said Chairman, CEO and President Gerald J. Rubin. "Challenging and difficult economic conditions in our market place have prevailed over the past few quarters. We believe this environment may continue into the second half of our current fiscal year. These conditions over the past quarter have been negatively impacted by declining consumer confidence, along with continued higher oil and energy costs. We believe these factors have negatively impacted consumer spending, so we are therefore revising our guidance for the current fiscal year.
"Full year sales for fiscal 2006, ending February 28, 2006, are currently expected to be in the range of $575 to $590 million versus last year sales of $582 million, and previous sales guidance of $615 to $640 million," he continued. "Fully diluted earnings per share for fiscal 2006 are currently expected to be in the range of $1.80 to $1.90 per diluted share, versus last year fully diluted earnings per share of $2.35, and our previous guidance of $2.50 to $2.60 per diluted share. Sales for the second half of fiscal 2006 are currently expected to be in the range of $317 to $332 million versus prior year second half sales of $333 million. Net earnings per diluted share for the second half are currently expected to be in the range of $1.17 to $1.27 per diluted share versus the prior year second half earnings per diluted share of $1.33."
Helen of Troy is a designer, producer and global marketer of brand-name personal care and household consumer products.
Personal care products include:
home hair clippers
liquid hair styling products
skin care products
Household products include consumer product tools in the kitchen, cleaning, barbecue, barware, storage, organization, garden, trash, and automotive categories.
Helen of Troy products are sold under licensed trademarks including:
Vidal Sassoon(R), licensed from The Procter & Gamble Company
Revlon(R), licensed from Revlon Consumer Products Corporation
Dr. Scholl's(R), licensed from Schering-Plough HealthCare Products, Inc.
Sunbeam(R), licensed from Sunbeam Products, Inc.
Health at Home(R), licensed from Sunbeam Products, Inc.
Health o meter(R), licensed from Sunbeam Products, Inc.
Sea Breeze(R), licensed from Shiseido Company Ltd.
Vitapointe(R), licensed from Sara Lee Household and Body Care UK Limited
Helen of Troy's owned brands include:
The company markets hair and beauty care products under several owned brands to the professional beauty salon industry, including:
Helen of Troy(R)
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