EL PASO, Texas–Third-quarter net income for Helen of Troy registered an almost 16 percent gain, despite a slight decrease in the company’s sales.
Excluding one-time charges, net income for the housewares manufacturer totaled $25.5 million, up from $22.4 million in the third quarter of 2006. Sales were $210.3 million, down 1.4 percent from the prior year. Operating income picked up 5.4 percent to $59.4 million, reflecting the fact that the company’s selling, general and administrative expenses slipped from 29.2 percent of sales in the 2006 third quarter to 28.2 percent.
Gerald Rubin, Helen of Troy’s chairman, president and chief executive officer, cited the improved SG&A performance in a company statement, saying, “The focus of our efforts to reduce SG&A expenses as a percent of sales are now being reflected in our results for the quarter and the year.” Rubin also commented on the “excellent sales and operating results” in Helen of Troy’s housewares segment, but added that the personal care sector “is facing a challenging sales environment, which we anticipate will continue through at least the first half of this calendar year.”