EL PASO, Texas–Third-quarter net income for Helen of Troy totaled $15.1 million, 34 percent less than the company’s third-quarter result from the prior year.
In a statement issued this morning, the personal-care appliances manufacturer said net earnings suffered from foreign-exchange losses, which reduced the bottom line by $5 million. Gerald Rubin, chairman, president and chief executive officer, said Helen of Troy’s selling, general and administrative expenses also edged up by 0.6 percentage point as a percentage of sales in the quarter.
Sales for the third quarter fell 11.8 percent to $185.6 million, with most of the decline coming from the personal-care segment, whose sales dropped 13.9 percent to $140.3 million. Sales in Helen of Troy’s housewares segment dropped 4.3 percent to $45.3 million. The company attributed the sales decreases to the weakness in the overall economy, which increased uncertainty among consumers, and to the liquidation of Linens ’n Things.
Although the company encountered difficulties in the market during the third quarter, Rubin said Helen of Troy is “well-positioned financially” to continue growing its business. “We expect the retail environment to continue to be challenging as we continue to execute our strategic initiatives with renewed effort and dedication, and implement our plans for the year ahead,” he said.