On October 4, 2023, Helen Of Troy Ltd (HELE, Financial) released its earnings report for the second quarter of fiscal 2024. Despite a 5.7% decline in consolidated net sales revenue, the company reported a significant increase in cash flow from operations and maintained its fiscal 2024 outlook.
Financial Performance
The company reported a consolidated net sales revenue of $491.6 million, marking a 5.7% decrease. The GAAP diluted EPS was $1.14, compared to $1.28 in the previous year. The adjusted diluted EPS stood at $1.74, compared to $2.27 in the previous year. The company's gross profit margin improved by 420 basis points to 46.7% compared to 42.5% in the previous year.
Strong Cash Flow
Helen Of Troy Ltd (HELE, Financial) reported a significant increase in cash flow from operations, amounting to $36.7 million, an increase of $73.7 million. The company also reported a free cash flow of $28.0 million, an increase of $101.5 million.
Company Leadership
The company announced an agreement with Brian Grass to continue as CFO. Julien R. Mininberg, Chief Executive Officer, expressed satisfaction with the company's performance and highlighted the progress of their Pegasus restructuring initiatives.
Outlook for Fiscal 2024
The company maintains its outlook for fiscal 2024, with consolidated net sales expected to be between $1.965-$2.015 billion. The GAAP Diluted EPS is expected to increase to $6.36-$7.03, while the Adjusted Diluted EPS is expected to remain at $8.50-$9.00. The company also expects to maintain an adjusted EBITDA growth of 3.2%-6.3% and free cash flow of $250-$270 million.
Conclusion
Despite a decline in net sales, Helen Of Troy Ltd (HELE, Financial) demonstrated strong cash flow performance and maintained a positive outlook for fiscal 2024. The company's agreement with Brian Grass to continue as CFO also adds stability to the company's leadership.
