Helen of Troy's fiscal 2Q profit rises 1.5 percent

Helen of Troy's fiscal 2Q profit meets expectations but forecast disappoints

Associated Press

EL PASO, Texas (AP) -- Helen of Troy Ltd. reported Wednesday that its fiscal second-quarter profit was nearly flat as higher costs offset improved revenue for the personal and household products company.

The El Paso, Texas, company also issued a weak full-year forecast, and its shares slipped in extended trading.

The company said it earned $23.3 million, or 72 cents per share, for the period that ended Aug. 31. That is compared with $23.3 million, or 72 cents per share, in the same quarter last year. Its revenue increased 11 percent to $319.4 million from $287.4 million on gains in all its segments.

The quarter's profit met analyst forecasts for the period, according to a poll by FactSet.

Helen of Troy sells products under house brands such OXO, Febreeze and Braun and personal care brands such as Vidal Sassoon, Dr. Scholl's and Sure.

The company said it expects to earn between $3.50 and $3.60 per share for its 2014 fiscal year on revenue between $1.29 billion and $1.32 billion. Analysts were anticipating earnings of $3.55 per share.

Helen of Troy said its guidance reflects the negative impact of the difficult retail environment, a normal cold and flu season, product cost increases across all segments and an increase in non-cash compensation expense for the company's CEO.

The company also said it expects to spend between $40 million and $45 million during the year on capital expenditures, of which about $33 million is related to its new 1.3 million square foot distribution center in Olive Branch, Miss.

Shares fell 43 cents to $43.10 in after-hours trading. Its shares slid 15 cents to close regular trading at $43.53.

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