Helen of Troy beat its own outlook for adjusted EPS while sales were in line, and the stock rose 3.8% after earnings. Growth across Home & Outdoor brands, Wellness and Olive & June, alongside lower leverage, were positives; the company also cautioned that its recovery will not be linear and that some Beauty brands still face softer demand.
- Q2 sales were in line with the company’s outlook; adjusted diluted EPS came in ahead.
- Sales grew year over year across all three Home & Outdoor brands. Osprey led growth, while OXO and Hydro Flask benefited from targeted inventory actions and new products.
- Wellness growth was driven primarily by Vicks and Braun; Olive & June also had another solid quarter, supported by consumer demand and expanded distribution.
- International sales grew 3.7%. First-half free cash flow was $38 million, and net leverage fell to 3.0x from 3.5x at the end of Q1.
- Retail inventory coverage improved year over year, but pockets of elevated inventory remain; some Beauty brands continue to see softer demand, and management said recovery will not be linear.
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