Upcoming AWS Coverage on Newell Brands

LONDON, UK / ACCESSWIRE / January 10, 2017 / Active Wall St. announces its post-earnings coverage on Helen of Troy Ltd. (NASDAQ: HELE). The Company posted its third quarter fiscal 2017 financial results on January 05, 2017. The personal and household products Company reduced its sales guidance but increased the earnings guidance for FY17. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Helen of Troy's competitors within the Housewares & Accessories space, Newell Brands Inc. (NYSE: NWL), is estimated to report earnings on February 03, 2017. AWS will be initiating a research report on Newell Brands following the Company's next earnings results' announcement.

Today, AWS is promoting its earnings coverage on HELE; touching on NWL. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=HELE

http://www.activewallst.com/registration-3/?symbol=NWL

Earnings Reviewed

For the three months ended November 30, 2016, Helen of Troy reported that net sales revenue decreased 0.2% to $444.4 million compared to $445.5 million in Q3 FY16. The Company's core business net sales revenue decreased $35.4 million, or 8.0%, which includes negative y-o-y impacts from Venezuela and foreign currency fluctuations of 1.6 and 0.8 percentage points, respectively. The Company's revenue numbers missed market forecasts of $447.2 million.

For Q3 FY17, Helen of Troy's gross profit margin increased 2.7% to 43.7% compared to 41.0% for the same period last year. The Company noted that increase in consolidated gross profit margin was primarily due to favorable shifts in its core business sales mix, product rationalization efforts, margin accretion from Hydro Flask, and reductions in product costs. During the reported quarter, Helen of Troy's operating income increased 13.8% to $63.3 million compared to $55.6 million for Q3 FY16.

During Q3 FY17, Helen of Troy's net income was $57.6 million, or $2.07 per diluted share, compared to $46.8 million, or $1.63 per diluted share in the same period last year. The Company's diluted earnings per share increased 27.0% on a y-o-y basis. The Company's earnings, adjusted for amortization costs and stock option expense, were $2.37 per share, beating analysts' projection for earnings of $1.91 per share.

Segment Results

During Q3 FY17, Helen of Troy's Housewares net sales surged 42.0% to $124.72 million from $87.82 million in Q3 FY16, driven by net sales growth of 39.1% from Hydro Flask and a 2.9% increase in core business net sales revenue. The segment's adjusted operating margin improved 4.6% to 24.5%

For Q3 FY17, Helen of Troy's Health & Home division net sales declined 3.5% y-o-y to $179.84 million, reflecting the Company's de-emphasis of lower margin hot/cold therapy business and declines in humidification due to retailers exiting last year's below average cough/cold/flu season with higher inventory levels. Adjusted operating margin improved 0.3% to 13.7% in the reported quarter.

The Company's Beauty division net sales slumped 19.5% to $107.69 million, which includes anticipated declines of 5.3% and 2.0%, respectively, from the Company's Venezuelan and North American personal care businesses, and the negative impact of approximately 1.5% from foreign currency fluctuations. Adjusted operating margin declined 2.1% to 15.3%, reflecting an improvement in gross profit margin that was more than offset by a 1.7% decline from Venezuela re-measurement, unfavorable foreign currency and lower operating leverage from the decline in sales.

Helen of Troy's Nutritional Supplements segment's net sales decreased 14.2% y-o-y to $32.16 million, primarily reflecting lower response rates in the offline channel, lower average order values, an increase in discounts to promote buyer file growth, and a decline in the legacy newsletter subscription business.

Balance Sheet

As of November 30, 2016, Helen of Troy's cash and cash equivalents totaled $16.8 million compared to $21.1 million at November 30, 2015. During Q3 FY17, the Company repurchased 922,731 million shares for a total of $75.0 million. The Company's total short- and long-term debt increased to $564.9 million at November 30, 2016, compared to $470.4 million at November 30, 2015, a net increase of $94.5 million. The increase primarily reflects $210.0 million drawn to fund the Hydro Flask acquisition in March 2016 and $75 million drawn for share repurchases in Q3 FY17. Accounts receivable turnover was 57.8 days at November 30, 2016, compared to 58.8 days at November 30, 2015. Inventory was $301.1 million at November 30, 2016, compared to $339.4 million at November 30, 2015.

Amendment to Credit Agreement

On December 07, 2016, Helen of Troy entered into a First Amendment to the Credit Agreement with Bank of America, N.A., as administrative agent and the other lenders party thereto. The Amendment increases the unsecured revolving commitment of the Credit Agreement from $650 million to $1 billion, subject to the terms and limitations described in the Credit Agreement. The maturity of the commitment under the Credit Agreement was extended from January 16, 2020 to December 07, 2021. The Amendment also increased the leverage ratio for acquisitions. In addition, the amount the Company may request to increase the aggregate revolving loan commitment under the accordion was increased from $150 million to $200 million, subject to lender approval and the satisfaction of certain other conditions.

FY17 Outlook

For FY17, Helen of Troy now expects consolidated net sales revenue in the range of $1.52 billion to $1.55 billion compared to the previous range of $1.55 billionto $1.59 billion. The Company is raising expectations for consolidated GAAP diluted EPS in the range of $4.72 to $4.92. The Company is also raising its adjusted diluted EPS (non-GAAP) outlook in the range of $6.20 to $6.50.

Stock Performance

At the closing bell, on Monday, January 09, 2017, Helen of Troy's stock declined 4.16%, ending the trading session at $92.10. A total volume of 631.27 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 246.16 thousand shares. In the last month and previous three months, shares of the Company have advanced 14.41% and 14.14%, respectively. Moreover, the stock gained 9.06% since the start of the year. Shares of the company have a PE ratio of 25.21.

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SOURCE: Active Wall Street