Helen of Troy Net Skies in Q4, FY
EL PASO, Texas-Fourth-quarter net income for Helen of Troy ballooned by 268.2 percent to $40.6 million, bringing net income for the fiscal year ending on Feb. 28 to $131.2 million, up 52.1 percent from the prior fiscal year.
The company’s overall results during the year received a boost from its acquisition of Healthy Directions, the manufacturer of vitamins, minerals and supplements, which Helen of Troy closed in June of last year. Healthy Directions contributed $37.3 million in net sales. This helped Helen of Troy to a 20.9 percent increase in fourth-quarter net sales to $377.7 million, bringing total year net sales to $1.4 billion, up 9.7 percent.
Julien Mininberg, Helen of Troy’s CEO, characterized the year as “a successful year of growth.” Mininberg noted that the company’s health-care/home environment unit posted double-digit increases in the fourth quarter, and that the personal-care segment “slowed its decline in the fourth quarter as we make progress toward stabilizing that segment.”
Mininberg also said the company has made “significant progress” toward its goals of improving organic growth, improving the Helen of Troy organization and culture, and optimizing its capital structure. He added that the company’s investments in marketing new products and other “demand creation initiatives” helped drive its organic growth in sales of core products by 2.1 percent during the fiscal year.
In the quarter, gross margin rose 350 basis points to 43.7 percent. Selling, general and administrative expenses increased 6.5 percent in dollars but fell 410 basis points as a percentage of sales, to 30.7 percent.