Shares of Helen of Troy Limited ( HELE ) are falling 30% on Tuesday following the company’s disappointing first quarter earnings results. The consumer products company — which includes brands like HydroFlask and Vicks in its portfolio — fell short of analysts’ expectations for both revenue and earnings, prompting a selloff among investors.
Compounding the negative sentiment, Helen of Troy also lowered its full-year outlook, citing headwinds encountered during the fiscal first quarter that are expected to continue into the second quarter.
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This post was written by Angel Smith
Video Transcript
A name that is under a lot of pressure here today.
And then, as Helen of Troy shares are falling this morning after a huge revenue loss plunging just over 30%.
Now, it’s marking the biggest drop yet on record.
Now, the company behind companies such as Hydro Flask, Revlon Dry Bar is missing analysts’ expectations on both the top and bottom lines.
Also saying it expects the problems it faced in the fiscal first quarter to continue sales will prompt the firm to lower its full-year outlook, and that’s sending shares down here today.
When you take a look at what they expect this consumer products company cut its adjusted EPS guidance for the full year.
It also lacked what the road had asked for here.
When you take a look at some of the weaknesses within this report, they also pointed to the weakness in hair care that really led to some of the decline that we saw last year.
This is interesting.
So to cut you off, I was just, I was just taking a look to see how you were talking about how crush names might look in comparison here.
I’m actually not seeing much if I look at Procter and Gamble, Walmart and Target, in fact, Procter and Gamble is the only one that’s down today, not necessarily in sympathy, but it’s interesting given that that’s the name that’s Do to support, you know, your dry bars, as you mentioned, uh um your revlon, for example, a lot of those consumer facing names, Ulta Beauty is down today.
That could be a possible move in sympathy with this name because they mention consumer weakness in particular and that’s just the latest since we were just talking to Chuy, right?
This is another company that cites consumer weakness, executives on the call saying as a result they are cutting or sprinting revenue, rather than lowering their annual outlook, delaying the release of long-term financials as it plans to their strategic here, citing This consumer weakness is really indicative to me of consumers starting to buckle again under the weight of inflation for some of these cheap purchases.
If you’re thinking about a dry bar, for example, that’s actually a really expensive product when I think about their dry shampoo.
I’m getting it at TJ Maxx and Nordstrom Rack so I can get a little discount because it’s expensive.
It is a good product and maybe other consumers are doing the same.
Yes, and those are because beauty and wellness sales, they were up a little over 15 and home and outdoor sales were down 8.6%.
We want to bring up maybe one bright spot within this report, the company said that cost of goods sold actually fell more than revenue by 17.5% there.
But again, some of the pressure across the board of consumer weakness that you were citing is clearly weighing on this name and you expected it to weigh now for the current quarter as well.
Absolutely.
It will be interesting to see how everything shakes out with the consumer names, the earnings cycle.