HELE - Earnings call transcript Q1 2020

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Operator

Good day and welcome to the Helen of Troy Limited First Quarter 2020 Earnings Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Jack Jancin, Senior Vice President of Corporate Business Development.

You may begin.

Jack Jancin

Thank you, operator. welcome conference of call. and fiscal first everyone, earnings XXXX afternoon to Troy's Helen quarter Good The is as for follows. agenda the call this afternoon a forward-looking I'll discussion with begin brief statements. of Mr. financial CEO, our on initiatives. company's Mininberg, specific strategic Julien of quarter and performance comment the the on will progress the Mr. Then Grass, CFO, the will Brian financials and detail more the fiscal the on XXXX. company's comment company's review in outlook for

you Mr. have Mininberg this, and Grass will your Mr. us for questions today. Following take

based contain performance. forward-looking certain words current forward-looking anticipates, This on conference are future financial management's words statements. with that or believes, call Generally, to respect identifying may similar are other expectation statements words expects events and the

from Forward-looking of statements results and number the are uncertainties materially risks actual to cause results. that subject a could defer anticipated to

be calculated may GAAP non-GAAP include non-GAAP than financial undue or not conference information. non-GAAP that measures not to statements be may to financial reliance an disclosed company These other alternative place on This may differently information information. forward-looking and considered companies. non-GAAP The are by cautions the listeners information information also financial call

earnings reconcile I has the the of then and earnings selecting Before homepage company's the by tab. Mr. obtained all today's financial interested posted over www.helenoftroy.com. Mininberg, tab been GAAP-based parties contains measures the release News website that company's turn The be can that measures. to non-GAAP Investor tables Investor of copy Relations release to to The their corresponding the on like to a I'd call section at inform the release Relations

Mininberg. the I to over turn Mr. will now conference call

Julien Mininberg

high start great our we the York. you our base. Phase especially New sales given expectations, during grew plan, for of in start the X.X% XX.X% reported diluted our we core in business fiscal and year. May XX Jack. Investor you, year a both us. joining grew thank quarter, a Thank ahead This detailed and Day adjusted Consolidated ago afternoon EPS our to which of transformation II Also everyone afternoon to great Good

by leadership which driven was brands, growth X.X%. grew Sales our

in Our These sales representing our the growing raise and off and paid opportunities results sales handsomely. further quarter. for fuel year the give ground investment investments now the continued marketing to XX% also focus us spending behind revenue innovation and We of for online operating further outlook gained EPS consolidated with balance XX% our XXXX. and for the attractive of fiscal increase

listened appreciation on the to those Before Day. I'd quarter’s to our sincere my of express discussion continuing attended who my for like Investor or results, you

Helen to Phase culture the you plans, to our presenting II key and leaders level passionate long-term believe financial powers success to some plans our addition Phase introduced a II, of outstanding life. goals come engagement we people of in bring day. a We flavor commitment and In gave Troy, to is for company, you our their as of our driver the and shared every that work our of II of Phase

investing in excellence; service Phase eight deployment. by are people; brands; maximizing down operating selective the elevating strategic builds As leadership on Investor and Phase best strategic accomplishments efficiency II optimizing accelerating outlined I priorities. centric; Day, international; focusing unifying M&A; capital the doubling and shared on on key consumer of and These during

our They our and Hydro operating Flask, XX% Since Vicks, opportunities higher profit. proportion next level deploying these months to Tools Braun, Honeywell, sweeten an approximately comprise as net for Pure our and to implementing capabilities strategies we growth continue of grow mix our and sales, have to leadership Hot them. even bring of pursue internally new OXO, them brands. ago, organization we nine been our

work our new timeless Investor skill consumer and tirelessly organizations. engineers, the creativity consumer of leaders to of section innovation and They match The and differentiated revealed centric and trends launches, to technologies, our new and highlighted showcase product designs. important Day and insights marketing sales

trust Day. obsession. love us, branded they solutions a is us with healthy Investor during consumers Again, delighting everyone thank end For and who you joined to

retailers. to this and retailers, by our brands, to segments sales quarter. review like growth business increased was solid across XX.X%, at POS business from gained of key led traffic growth in Now we and distribution, improved our at brick Sales which core strong saw benefited by with turn Housewares I'd OXO outstanding. net both store segment, mortar key growth as

were popularity New The categories new of marketing as trend with Further product consumers retailers and that household and rising and strong organizational both particularly introductions key the via were in OXO’s focus investment e-commerce on de-cluttering launches. responded well storage OXO’s drivers. food gurus in store, growth, contributed to organization and also organization. in digital to equity kitchen and on

The further brand especially offerings the and Hydro on trends in made expanded States, and Coast the contributor of Flask, key East Flask the retailers selection enthusiasts and market another They growth strong of for vessels. the reinforce as Hydro on role brick and brand’s The and shelf trendsetting in to retailers high quarter. expanded hydration on outdoor For alike. popularity to and terrific broaden continued strides Northeast, consumers to placement position, and grow performance mortar, United outstanding equity expand a its with its one with number items. the where insulated we category share continues

we sale results sell strong visibility. accelerating of We for where and customers through seeing inventory are in replenishment have orders with the those point line

consumers. resonating new Flask’s equity, colors growing brand well and to spring beer the addition across of In a the collection with lines hydration, coffee, bold refreshingly of introduction Hydro food is

beyond the Hydro growing two hydration line Flask number its new high performance it's a and packs. products bottle of soft of announcement of new also including goods, the strategy with advanced

-- increased new stability. center is the hydration pack, first The and lower a XX-liter designed to prove downshift of gravity to provide

insulated to flow and system These The for Their backpacks new pack, panel hip bikers woman's hands the hydration consumer-centric four more innovative second hours is hydration. especially a hydration straps more cold women's new and suited fit allows the belt through on hikers. back cold shoulder tailored than XX-liter are of to comfortably body. free mountain

and way leading Flask More new Outside Hydro promise products U.S. continues market are targeted we much beyond. the bottles has environmental brand. to double and as Flask believe can be We and sustainability on Hydro offers a and in international. key authentic grow more both on down the forward global

to quarter, Health core Turning X% net the business Home to the prior & of in a the segment, year. difficult the sales face declined in comparison

as we our incremental new Vicks However, and down lines Pacific retailers elevated products. previously our distribution and earned inventory in introduced for improvements U.S. Vapo sequential sold levels, made Asia Thermometers

A pink blocking sound nightstands front side a tone, have USB sleep one phones. more provide just and a help earn launches, this and of spot DreamWeaver center keep received. also been as of Recent our a the called includes Honeywell that It product noise that all it to great restorative new the such example into sound soothing Sleep frequency it new promote help DreamWeaver with the benefits a on like brand fans keep essentials uses reach the seasonal category, strategy, can can deeper, The furthers formerly bed product more extends into households. Fan benefits year charger well long. Honeywell sleep to for

business centric momentum in the driver. innovation driving consumer for The to years accelerated two over key past sales in continues appliance quarter, beauty. Similarly, X.X% in be the core beauty, a success growth

viral and drivers this digital for Our support the consumers are Online in success. with were outs appliances. also marketing increasingly key of quarter innovations and international for combined stand

word media of We from as earned earning are base five bloggers key and support have ratings rapidly on large star a spreads. strong four and and websites

Stepping strategies, elevating away from the progress like business would Phase operating to in we II where made good and excellence, segment, maximizing some best namely, the people. shared spotlight quarter, now the unifying other and I accelerating the efficiency of service

services, in in focus building further Phase key shared a area For is our processes. II excellence

supply the with begun XXX reduced have Troy of standardizing what unique across simplifying, efficiencies, and the purchase. over We the to includes at lower we point stocks of of processes inventory, our new call way, which intent and Helen chain out create systematizing

This of a key end across global demand As out categories, we is at very upgrade managing when an May, example, multiple an Oracle requirements. customer complex and the planning our of regions tool. product rolled portfolio

Flask also the partner of center, our operations third-party the during midst and quarter, a Hydro from operations addition, our are retail and in customization distribution our In now we own transitioning direct-to-consumer to successfully distribution transitioned in-house.

changes We that Helen possible be more expect These these them organizations. business speed. are improve that Troy of second and across not actions collaboration all for planned nature quality cost, regional many and services and units, culture will help of is now would like II without Phase shared the

upgraded we In During talent emphasizing bar substantially on are our and the Phase training we II, Phase pool. performance expectations. raising I,

very associate each people new Troy of suite full rolled our has reach that potential. our received, even in-house take During helps and sharpen will programs the Helen we of and out well their the quarter, It been farther. Academy, their training an skills new skills

I to focus thank Before the trust again as Brian, Phase turn call I want we over for on your support, and you II. to

my gains creation. from considerable brands, organic improvements revenue and of with powerful created for deployment our in on from working shared of further power for risk capital. value belief are it have to the days us. It flywheel flywheel. and elements We expansion capital. who from are leadership these Helen Further ahead brightest a tax the and momentum drive focused efficiency margin We with debt starts people structure underscore investment believe our also our comes low Troy potential of innovation accretive growth, that services and They

over now turn will I that, With the Brian. to call

Brian Grass

position our full quarter afternoon, Thank results you, We're good first with and Julien be raise a pleased year to our to and outlook. in everyone.

it the further impact know tariffs, an is many as Before I important you of detail, is discuss of discussing for for topic like more us. quarter the to since this I'd in

As and impact I and X been time have increase we're some for outlined to the take List tariff in XX% we to during position to XX% supply of in actions Day planning those chain the a May, believe good mitigate pricing for our increases. from Investor

public China. been trade were postponed have In recently the comment, List now with potential terms for pending a these X but announced tariffs of introduced deal

cost any not The with reductions, have outlook considered to not been fiscal this taking would we pricing, at List goal As same X of impact consolidation, the that anticipate offset other profit supplier be If taken vast the has our gross and mitigation efforts. point. we XXXX in majority implemented, to the past. the we've changes dollar ultimately approach implemented,

of Property of I'd also the that ORIP I Tax Offshore to discussing like in new foreign fluctuations currency referred and UK as impacts tax during commonly the Receipts be explain call. the to the respective Intangible will

quarter, first UK to The UK, still and receipts tax gross sales the there XX%. of during the effect that could of tax, and ORIP came UK of property remain where legislation is in subject intangible used sales is the and to implementation into middle with property the new facilitate held aspects Beginning are the many offshore, unclear. that be tax

intend as operating treat to a this tax transactional in We expenses. included

believe a fiscal not it the first headwind not results, have our on do outlook. quarter impact was that operating we adverse material our for will While original in and is included the tax the XXXX

foreign currency, unfavorable rates period Turning last exchange negatively generally profit. sales gross average impacted to which net the to were year, and compared same

SG&A, profit. to You me to refer favorable from sales in are of net relates which primarily settlement will on of the and hear impact currency offset gross unfavorable a contracts that intended to impact also foreign forward currency

the the review adjusted of than in results above in sales largely second expected with net half our achieved EPS strong expectations, and stronger due to Housewares to of quarter, Beauty Turning we quarter. the diluted

an sales core appliance sales revenue consolidated business segment. segment, sales in the by X.X% growth year, increase Beauty an in million, online over driven in Consolidated increase increase the X.X%, prior increase a brick mortar reflecting of in Housewares and $XXX.X the was in sales and a

channel lower of by of and partially Health currency Sales X.X%. $X.X the first within year-over-year foreign international in segment, were online quarter. approximately net from the the comprise grew or These in unfavorable Care to sales the sales now impact Personal and our consolidated the & XX% Home factors segment, million approximately in sales approximately XX% decline a offset Beauty

posted meaningfully of demand year. strong which contributing of a for In reflects expanded same comparison online cold decreased XX.X% These flu sales tail which international last season This to net of quarter see business distribution difficult with and existing with early offset business as end incremental in-store Hydro Flask distribution cough in were a partially with the core to for brands by and our a strong segment, introductions certain Health OXO the continues line Home & was strong the and domestic core and a segment seasonal growth. to increase customers factors categories. both period replenishment X%, expectations, new Housewares very product

in and primarily Beauty in mortar growth partially appliance core and were Personal business net especially by in offset These sales increased decrease Care. category, factors decline and brick to a and international. growth online the a X.X%, due

profit higher a freight sales, by to XX.X% impact the percentage gross decrease due higher Consolidated leadership of was growth XX.X%. margin impact unfavorable increases, compared is tariff was currency X.X mix and primarily sales. The to point SG&A expense, and margin XX.X%, XX.X%. favorable of Housewares foreign brands net offset from partially to of the compared from

the The point and long-term and due the expense by advertising higher and forward currency annual our claim leverage impact related operating lower higher taken actions liability partially of impact expense. X.X decrease incentive product offset retail of of is foreign product new higher primarily greater share-based favorable These expense development exchange percentage compensation short the factors and to customers, performance, were impact to contract pricing and with settlements, expense.

or GAAP operating of was compares the period percentage as comparative net sales to million million partially in and SG&A the or or driven charges $XX.X profit million, gross by year. of impact a sales, offset operating margin million compared XX.X% $XX.X last same million sales to increase XX.X% by of favorable of income of a This in margin. Adjusted of was sales. restructuring in XX.X% or sales. reduction net net of XX.X% income net lower of $X.X net $XX.X The $XX.X

factors reflects compared higher the compensation margin new investment to product adjusted a X of to margin incentive Housewares and were channel new Turning primarily favorable and offset development greater point the more segment, was These support percentage expense product expanded impact now increase product and operating adjusted to margin partially higher leverage. mix The higher XX.X%. by operating by advertising brands, expense. launches XX.X% annual and distribution, operating

These development settlements a currency mix. favorable percentage the unfavorable and less reflects liability sales higher impact adjusted was X.X new and XX.X%, offset foreign expense, lower lower factors gross profit, XX.X% leverage and of currency operating operating on impact forward decrease margin point of and claim Health impact home compared were primarily the channel exchange to favorable foreign the contract increases, tariff product the partially in expense. product and and SG&A of product by net

is expense and primarily less compared the higher meet development the lower appliance point operating advertising due and adjusted X.X%. X.X% was strong Beauty margin product to to higher freight new The in a favorable amortization percentage X factors mix expense. product to expense. decrease were demand by channel category, These partially offset and

was compared million increase certain tax rate operations in tax $XX.X to statutory per per diluted compared is The shifts Income in effective effective income share. of X.X%. Our rates. and in the $X.XX company's or mix due continuing $XX.X jurisdictions taxable primarily million increases diluted was to the X.X% various the or from in $X.XX year-over-year share, tax rate tax to

to in per ORIP currency, diluted $XX.X despite EPS an growth This in diluted XX.X% the or compared increase share, represents Non-GAAP adjusted was million year-over-year. or foreign unfavorable per diluted million UK share. adjusted $XX.X the and income new continuing operations from increase $X.XX tax, investments $X.XX

to on We deliver of XX.X% EPS same last top are year. adjusted growth a the increase pleased diluted in period in strong

Turnover the as Now last the to trailing accounts an on over increase our the calculation increased reflects period period. in first revenue same and receivable to days XX moving collections year. the cash XX.X timing to days compared month XX.X position, quarter, period turnover for average growth of and financial primarily

compared quarter end balance of Our accounts $XXX.X million same first the year. million, to time $XXX.X the at at receivable was last the

our was certain avoid these last to largely we period. as strategic any turnover compared are as in times inventory to one improve completed. temporarily million the Flask improved in the we $XXX.X of consolidations. to distribution inventory Trailing X.X year disruption potential increase to same expect supply our continue million Hydro compared to The Inventory X.X integration levels the facilities, we levels prior as And into at of year. XX supplier inventory complete time projects core $XXX.X times month higher reflects

decreased from inventory. short liabilities. was and increase cash used was in million long-term accrued partially cash compared to activities Total operations $XXX.X last decrease This The offset by a and due cash the to same in $XX.X an by period to for expenses decrease million. other Net by $XXX.X operating primarily year. continuing debt was provided compared used current million

Our was X.X leverage ratio periods. times both for

of to environment the omni-channel capitalize on alter can results, we in first landscape the quarterly same dynamic Our as opportunities. the cadence and our were adjusting quarter result how of this continue which order volatility. adapt good environment a Retailers to quickly are example to results evolving can retail

initiatives vary prioritize the to we Despite this and effective and achieve Our quarter-to-quarter and been and annual execution expect long-term consistent annual continue ability pleased variability, and for are to with also advertising have operational businesses. can measurable, digital results but to our performance health year-over-year.

our absorbing Turning reflect from not outlook, increasing which to of increase although first incremental year, and in We're our growth of making the full unfavorable all fiscal of in UK our impacts new quarter. investments adjusted year ORIP is our included original diluted to outlook, and outlook. strength while pleased foreign were our tax, are expectations EPS we the early currency, it to the especially

$X.XX growth of we XXXX, prior X%. expect the of to sales compared X.X%, consolidated fiscal net now $X.XX of to implies For billion expectation revenue billion, which to X.X% consolidated the in X% to range sales

outlook net which year Beauty of our prior X% decline to for X%, maintaining for and a Home sales in sales of maintaining net digits, growth sales business. We're growth growth the expectation low-single Health outlook consecutive appliance includes outlook X% X%, to third Housewares for we're to our in our of an compared reflects our & net X%. net X% Our in expectation to sales increase to

diluted We from operations which any now share-based expect diluted from adjusted excludes consolidated asset $X.XX of of intangible compensation and to range $X.XX asset to continuing restructuring expense. GAAP operations EPS amortization $X.XX $X.XX, continuing the charges, charges, EPS in expense, non-GAAP and impairment

flu XXXX, cough the prior June will remain continuing The to fiscal foreign an rates and adjusted compared increase EPS exchange EPS the to outlook of is in XX%. constant to that year. of of assumes our in sales by expected upcoming in the comparison with XX% net investments cold growth XX% remainder season diluted XXXX, line of from impacted fiscal currency for Our and averages, diluted the year-over-year be operations expectation severity historical of XX% will

Our outlook million. diluted XX.X an based on is diluted outstanding of EPS estimated shares

have The of foreign constant an increase impact of impact original partially outlook rates the these from the June Combining in and diluted by currency increase reflects EPS adjusted in quarter, unfavorable the will fiscal share. approximately diluted per ORIP that compared strong tax, offset the $X.XX our the for new UK performance assumption investments expected remain expected the to XXXX of exchange items rest the in impact expected our XXXX growth outlook. first

growth half X% performance concentrated strong XXXX. of now year, to continue XXXX of to first and We comparison, adjusted the EPS due expect to fiscal of for be in fiscal for the expect adjusted XXXX the half EPS in X% half year-over-year. second the in first We fiscal to diluted growth specific of events

the range We the year range in and for effective XX.X% of to to effective reported tax an tax full fiscal of rate adjusted expect XXXX. X.X% GAAP rate X.X% XX.X%

not impairment earnings divestitures be likelihood estimated, The or charges, future they repurchases currency fluctuations, share included sales reasonably in unknown asset foreign are tariff future fiscal therefore, increases any and cannot acquisitions outlook. further and our potential and are XXXX further of impact

for Now, operator it I'd questions. like turn to the to back

Operator

with [Operator Sidoti. you. go Instructions] to first We’ll Camma Thank Frank

Frank Camma

good guys. Hey, afternoon,

Julien Mininberg

hey, how Yes, doing? you’re Frank,

Frank Camma

know distribution, it I by was weighted, really size about bit here. more color couple like for beat can obviously cadence of new the a backend things, and you A Thanks little called some of I -- Housewares go can and out sounds little the it you given question. segment? taking was more you it this, Good. was the on you into that that start mean, the that can replenishment, you talk a Beauty but gave the bit quarter of

Brian Grass

Sure.

It's there's things both we ongoing sales lot of not that think of programs is mostly I growth of half maybe by based would not there, going unusual on driven the bit pipeline more by right, in call OXO for basis expect call unusual. And concentrated of you're at I XX% -- distribution, say nothing being an retailers. a the products the what really there's on Flask it was And, Hydro a I a on driving don't strong demand lot filled. driven lumpy back demand. but would timing and the in I and while little it’s been segment of But solid quarter… incredibly some the that's would

Frank Camma

either no was how it say. I channel sounded club like And or less should there a

Brian Grass

compared were first there periods, quarter same less in of actually both channel but the the quarter Less, club to year in this year. last

Frank Camma

Okay, I’m ahead. sorry. --. Go

Julien Mininberg

I apologize, Julien here.

in demand. sorry And pent want in demand the as product the very also to up say quarter to product really even I door weeks, went mentioned, And out the lot last segment, of especially either a just we in in, strong just interrupt appliances. of the that late the Brian few of as meet came to Beauty had you.

are that is pure really good viral is just in pipeline, this products. innovations from So inventory suction filling sell And especially for and the that heard back through stuff those in prepared in not or some this market beat, not remarks. surprised is us but And the big quarter. as the the me the half you about result a talk of just drawing

Frank Camma

sense quarter. you to first had success last in me because the the Well, -- makes Beauty

year of of a I it how see suggests of for revenue at that. kind kind you for guidance or pull numbers look the deceleration huge the Housewares matter through would in no But So on balance your growth.

through that your system? like explain how you can So work

Brian Grass

that mean was versus number big just delivered... You the

Frank Camma

the correct? top Is an a you your XX%, end mean, it's growth year of for X%. I I -- yes, get that to growth I Yes, in But that the get a to was said revenue well, of increase thought year.

Brian Grass

still It’s year… the in early Correct.

Frank Camma

of Mathematically, the X% in range grow, the X% a like you for to have balance year. to of

Brian Grass

quarter mind quarter smaller that keep first is absolute Well, a dollars. in the comparatively in

more ability influence following the the to quarters have results. So much

So, the get look able be to I to you dollars, percentages can't got at there. mean, you in math do just to

Julien Mininberg

of of And prior the base in only the not year. quarters, the year-over-year the different size the but

of look you're So of when second year if in so at the substantial. asking about last Housewares, growth QX you the from quarter was the before year,

big to grow to than is year will a So of grow the over we then for rest that further number the and we originally pointed out.

it’s we rolling beat through to of your Some the that just question. had

whole out of early is just even yet. the turn was some the year And play up simply days, not I'm how we from we’ll it do plays Frank. out there seen saying haven't better, might the year out saying I'm

Brian Grass

Historically sales first quarter is quarter. the their smallest

Frank Camma

-- you you your pretty year-over-year. much against biggest get that I and from comp but quarter comp did a No, your

my unless numbers So are wrong.

it So X% decelerated year-over-year then Housewares… I for went fourth think correct you you last about had quarter and to by XX% XX% to that year

Julien Mininberg

to with and Brian do thing Yes, but percentages the careful you’re what It's saying. is one right...

Frank Camma

net beat Yes, I looking can Why of line at up. you no sales more? given this. point okay. I'm wouldn't get to get on then numbers. the expenses. do. explain Can don't I'll margin -- margin I have I the the out why I restructuring want just you But just Beauty of the the get But No, now that the numbers, expanded

Brian Grass

significant order have products. the There's -- fairly against incur the of out. to expense to in of There's some the for to fulfill freight called demand that Right. it strong we made that we decision amount we -- a fairly

order so temporary We're choice, even go out And forward options need margins. it had to we we'll expense that basis. a the the does out where of demand. use of though freight to that expedited on a that meet And to in have to position we strong drag make on chose incur

Frank Camma

Okay.

normalizes... it So

Brian Grass

Yes, correct.

Julien Mininberg

and a for remember, And of the in market. products those there's lot draw centric, consumer we're

it's the to say no and at to a to thing another choice consumer that now of the we we just supply know So winner. the as And is full several customer, order thing it's And supply that the It's allocate. level significantly mentioned, Brian we the in we make product market, made of of lot increased, innovations, one demand. with the a choice. product have a And going don't to satisfy that forward. those with don't see a

normalization. So there's a

Brian Grass

in an a overall You stronger the also have of Care, -- impact mix that has much decline decreasing a Frank, on will the margin margin. which Personal factor had the got

Frank Camma

guys. great. Thanks, Okay,

Julien Mininberg

Thanks, you bet. Yes, Frank.

Operator

And we'll with next to go Olivia Tong America. Bank of

Olivia Tong

thanks. Great,

Julien Mininberg

Hi. hey, Yes, Olivia.

Your first time, see been thrilled. following know for a call to Welcome. with I us. you. We're great you’ve the but long company

Olivia Tong

First you question like, nice It sounds obviously around a the dollars. just investment quarter. incremental is had

sounds growth you is it So like on forth? dollar you're where that going investments. incremental Can talk about

Brian Grass

leadership first question. great pleased result And the Yes, the from across quarter we do the a very gives we’re that, the are increasing brands. to fuel us confidence. There's lot opportunities of

there's going focused on online, And support. those just into fair expansion. concentrated opposed in as seven money brands. marketing side digital of primarily international the to It's some there's So going a amount the e-commerce it's online,

the active consumer see centric. side, we Amazons on campaigns that of items, that the digital you'll the of that the stuff on us of has against and is the new are rest viral this marketing we money been very for at point. going pour that's where some because so e-commerce just So is, into feeding enough or almost world, etail consumer And it money strong couldn't the

are marketing against didn't the cold we wildfires see cold there the it's put any sold like so have those And they and are themselves. example, up, the flu places then we'll if Things to like summer, all heaters, seasons money the as or flu, how stuff upcoming things fans for whether where hot that the turnout. or come season

some And have places the So attractive where we media these found the money the side, social we will ROI now good into them, we and are that some money really investments. more on be pour with increase levers to spent. the will

Olivia Tong

super there want great temporary to nothing sounds helpful. right, time about like All And demand. there's then little the one about Housewares. is I bit [indiscernible] talk or It and a

little bit should a the gains, POS anticipate approximately. So elevated prior this this growth presented? more you is also of we distribution could And in perhaps one just breakdown quarters if you gains or or prior in our layering plus growth

Brian Grass

understood. Yes,

So OXO talked and different about Flask also stories. there's the Hydro brands both we both that’s positive, Housewares, but

country with starting United making It overseas, what well have OXO hand. in OXO, opportunities the see, lots penetrated and like are does of overseas. And fairly on this progress we States. we So in one we is

well making other they decisions shelf. They're its the the enough in of new distribution strong States, of incremental decisions that POS performance, what some the OXO biggest about On United earned rationalizing just hand emerging is of shelf want some in the in at on victor are customers. buyer. plenty we it's doing the on at those and products And

there. incremental some there's So distribution

We're spend. feed very and well. incremental and online, through that selling just very day generally to themselves, is spending sharper the that and doing they OXO how consumers is just are I just and And to online every appealing helping getting referred in we're in to well products for leaning we sharper on and learning they're new

Coffee and I Investor innovation well. the track. POP those kinds You Day food as heard in all the the talk they're tearing specific this cool. storage about stuff Grinders the saw you personal remarks pretty in Containers new are of think two The awards, winning showcase examples and in and X.X organization us as as quarter They're household up prepared

things are into. that these we're leaning So

and also have of lot items more We're couple who of some Flask of in earned case East putting Hydro the ones. new on the very leaned and then in category good shelf the in a Coast the new retailers, big earned on space. the on And distribution, we've brand. especially Hydro leaned specifically some the to In is shelf Flask,

So are anniversarying. those major and now outdoor retailers. sports that They

a as see some you're through, what share, talking can already and about that in share saying the of sell market metal in pure I so consumer that's mentioned we're And of mean, appeal, beverage And expanding a leadership of market the and I here. in ware result, acceleration I'm you position the actually. it result

work. are still that distribution times highlighted And a then growth at Hydro same of the drivers, in couple Flask beyond terms on we've winning of hard

like even just products, specific that consumers. there's call specifically new packs. around and other of are lines to a named items new a new the about packs about few talked attractive soft talking now And the we in I'm there out the hydration couple we that today, and So

good. through sell So looks the

Other new and sizes, which bottle the shapes, a space, the we space for new new is International. of into Hydro then ones colors, Flask us on are products subject have it’s wide introduced international, driver a for of very lot new lastly some that the cool whether customization. And in growth marketplace, being

very concern are we the you sustainability grow to kind So probably where its it that three continues and it which revenues now, when arrogance comes this of no multiples how investors from growing, is from could is I've of about had for and strongly. keep years and any frankly the thing with bought

Olivia Tong

much. Got it, thank very you

Julien Mininberg

Thank questions. you, Olivia. Thank you the for

Operator

We’ll Weiser go Linda next Bolton D.A. to with Davidson.

Linda Bolton Weiser

Hi.

Julien Mininberg

Yes, hi Linda.

Linda Bolton Weiser

Hi.

you distribution what say of gains, keeping terms just in the inning in in? Flask it's terms on would of inning growth that of Housewares, topic So is Hydro what of

Julien Mininberg

it's probably in I would U.S., the innings. the of middle part the say later in

like sixth think inning, something like that. So

Brian Grass

categories where bottles, it But with that new respect began. still core distribution has just its to category,

Julien Mininberg

Yes, about bottles. I'm talking

So if the underdeveloped, is the West was which it just even on expanded Coast, three little started crushing expanding The still Midwest, the Northeast year and West into into up is you Coast brand, into still back the of ago the like a Southwest, just East. a years then primarily underdeveloped. two, Southeast heavy

call that. third, to So this second is from fourth, it the the like the trip inning fifth

there of of were there's I of of were and now kinds in XX and a doing easily just for things colors. a XX sixth It of a the was yet some tons ago, kids there, a the and kids university XX of for newer sports was California all trends, Flask to and on I they teams like myself distribution campus lot Hydro the and I Northern a so more setting major things business Flask. Hydro earned in were week by them probably or kids incremental walking and pot XX be is at XX were It's think

distribution and trend where you're the like lot items penetrate these higher the of far, want innings a is products. seeing buying of So in into coming place all users and this the California and even in kinds in where a its new started,

items about new are existing that So it's into distribution, not it's sell-through. of about distribution innings just driving new

competitive second doing tell about on grow. shorter most well, to be play. is we whole probably see left very International, doubling of the developed and were all. say the the And them there’s thing though are, on the to of in places the nine where then drive chosen. innings the I'd first to opportunities we're they the of maybe countries even the you subject world eight list at And to I’d intention down subject you just of we international distribution inning then for in opportunities when the obviously and all reasons, the many far talk will part are say wouldn't where ways But we've where in specific so to the

Linda Bolton Weiser

on ask can even prior second & gets Home, the And then, the in Okay. your think I I year just Health tougher comparison quarter.

growth XX% the like in really So, like down core be ramp it any there second the issue Is can that a kind be And half. sales new give see I or half a really product launch in in comparison then much us you mean, second even any quarter? to could rate more or second confidence, fiscal? of would so, the big higher has if of the particular actually,

Brian Grass

in & particular. Health For Home

Julien Mininberg

that’s Yeah, she's asking. what

Brian Grass

the quarter. we're not XX%. XX% decline you I in a second mentioned Yes, expecting say would

Health assume range I for think Home. But, it's X% expecting to safe the to somewhere & of decline. X% in a we're

Julien Mininberg

monster that of But to is not year that ago proud a it's be sort weakness, huge result. We're -- that's of that just made because you because base some very your in point clear period. of of the

it to hard Now do. that's we’re over thing a

that's that And that about. so is the doing talking of he what's decline math

Brian Grass

all the answer that Does questions?

Linda Bolton Weiser

Yes, it did. us just effective? the Yes. X, that tariffs, XX%, which guess when is Excellent. on the I is correct, on you List can And then, the remind

Brian Grass

our It's pricing and already is already effective. effective,

Julien Mininberg

the… the moves and on Yes

Brian Grass

List not Sorry, X very been and a that's like X? List There's not X including talking you're into iPhones that, that has a on things play. maybe about large items put group of

been it. was implemented XX% announced on the to to was delayed our List that put it's from It in it was pricing has trade and was place pending go XX%. potential -- X So negotiation. and then announced There implemented deal it have and actions a we been

Linda Bolton Weiser

beat $X.XX way then increase? And guidance difference investment the on your things, raise Okay. and FX just and there UK any your by break $X.XX the to taxing the the between three for is those down

Brian Grass

equal three. all be out roughly of They work amongst to actually kind equal,

that want you So with to if you can. work

Linda Bolton Weiser

very much. I thank you appreciate Okay,

Julien Mininberg

the And and move one want next thanks. hit to we a I the of one in remarks, guidance more have total of the know year. question, you to thing powerful the the Yes, bottle. lot but concept Linda, I I sustainability idea asked in that emphasize response point wanted is question, before for because say to of beat big one Housewares a just not and prepared so a and is we the to about Flask, this Hydro your which beyond the the on very of is,

size don't but already I've that those heard ability many interested new the have friend along in and in bring has ramping their households. too. up my beverage the And something into color, the like many just or bottles but the of it to yes cool seen categories who lines not friends, I it I'm more new we're more house or our strong, your people's you've for of like this in teenagers we're or meaning so you one it's several know thing And one, times just or probably how something -- the new the

college those you tell are multiple even with Hydro can that people you're Flask. going inflated there's true is campuses I to bottles, and on then kids it's winning. And of Flask the very now Hydro seeing some

to versus one one like and of a the and think different take sizes the you caps You’ll and things classes, gym that.

innovative, the call. mountain growth beyond started soft our it's want just emphasize That's for out today distribution. innovating hiking see But on bottom. through. in because there off like hydration and and the in the heritage packs the women's of it the not we'll new for beyond distribution the subject are we we we there, about talked all the of the and us. to on really that And heritage, bottle, I These called how are our like all sells was that and bottles. just small prospects we incremental subject And lines, biking our incremental is them And those also that we’ve version. But any

Linda Bolton Weiser

you. Thank

Julien Mininberg

bet. You

Operator

to management comments. closing additional I'd back this time, it or like At any pass to for

Julien Mininberg

We weeks. know And the you, in with we many talking we'll coming appreciate very being Yes, And the operator. to everyone your thank with today. us call thank you much you be for on of support.

thanks So evening. a great for have And attending.

Operator

participation. conference. That does you include thank today's for We your

Helen of Troy Limited (HELE) 9 Jul 192020 Q1 Earnings call transcript