Helen of Troy Limited (HELE), a consumer products company, reported a decline in profit for the first quarter on Tuesday, primarily due to reduced sales. Both earnings and revenue fell short of analysts' expectations, prompting the company to lower its full-year outlook.
The first-quarter profit amounted to $6.20 million, or $0.26 per share, significantly down from the $22.58 million, or $0.94 per share, reported in the same period last year. The decrease in sales, coupled with increased income tax expenses of $12.12 million this year compared to $4.15 million last year, adversely affected the bottom line.
Excluding one-time items, the company posted earnings of $23.3 million, or $0.99 per share, which did not meet the average analyst estimate of $1.59 per share. Analysts' forecasts generally exclude special items.
Operating income declined to $30.8 million from $40.6 million in the previous year.
Revenue for the quarter saw a 12.2 percent drop, coming in at $416.85 million compared to $474.67 million last year. The consensus estimate was $445.85 million.
For the full year, Helen of Troy now anticipates sales revenue to range between $1.885 billion and $1.935 billion, representing a decline of 6 percent to 3.5 percent. This is a revision from the previous outlook, which projected a drop of 2 percent to potential growth of 1 percent.
The company has lowered its EPS forecast for the year to $4.69-$5.45, down from the prior range of $6.68-$7.45. Adjusted EPS expectations have also been revised to $7.00-$7.50, from $8.70-$9.20 previously forecasted.
Analysts are expecting Helen of Troy to report earnings of $8.93 per share on revenue of $1.99 billion for the year.
