Net Edges Up 0.5 Percent for Helen of Troy in Second Quarter
EL PASO, Texas-Second-quarter net income for Helen of Troy finished at a record $23.6 million, up 0.5 percent from last year's second quarter.
The company also set a new record in net sales for the quarter, which ended on Aug. 31. Net sales rose 59 percent to $277.4 million, thanks largely to Helen of Troy's acquisition of Kaz, which it completed in January. Sales in both its housewares and personal-care segments also posted double-digit gains in the quarter.
The company's gross margin fell 440 basis points to 40.5 percent, due to product cost increases and out-of-season promotional activity, along with the fact that the gross margin in the health-care/home-environment segment (the Kaz product grouping) was lower than in the other two company sectors. Selling, general and administrative expenses, while rising 56 percent in dollar terms, fell 60 basis points as a percentage of sales to 29.5 percent.
Gerald Rubin, Helen of Troy's chairman, president and CEO, said the company managed to break its sales and bottom-line records despite a difficult retail environment. "The integration of Kaz continues to progress well and according to our expectations," Rubin said.