HELE - Earnings call 3 2024 | Helen of Troy Limited

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. Welcome to the Helen of Troy Third Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I'll now turn the conference over to Jack Jancin, Senior Vice President of Corporate Business Development. Mr. begin now may you your presentation. Jancin,

Jack Jancin

as company's operator. review trends. of comment Troy's you, The of of for morning forward-looking the Good brief performance Julien with financials Earnings Ms. CEO; Geoffroy, Then Brian morning, detail financial Helen to agenda and is this Mr. call the welcome financial statements. and and the Noel will fiscal I'll Third the remainder outlook discussion on Call. company's CFO, Grass, begin a more in everyone, Conference Thank follows: for Mininberg, the Quarter company's Mr. and the XXXX of COO, current and XXXX. will our quarter the the Fiscal

today. Following this, we will take us questions for you have

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

of that also information. include to may from This may subject call are to anticipated considered non-GAAP conference be the actual and materially could risks a information statements differ results cause results. Forward-looking number financial uncertainties that

non-GAAP financial measures other cautions than an not non-GAAP to and information. to place disclosed alternative not differently forward-looking listeners These be or may parties. on calculated the GAAP statements information are financial company non-GAAP information by The reliance undue

inform all Investor company's been that the the over has Relations www.helenoftroy.com. I parties call like to interested turn at of I to copy Mininberg, website section Before the earnings of Mr. a to posted release today's would

obtained selecting on The to call over tables financial the release Investor contains the Mininberg. homepage non-GAAP turn Mr. I can then the now release Press and company's measures earnings tab the their Releases will corresponding The to reconcile Relations GAAP-based measures. by tab. be that

Julien Mininberg

with the joining expectations. This financial our came recent we full-year Thank on believe achieve Jack. pleased Good results objectives. our above I in reported our slightly for of morning, everyone, you that and thank we am morning, are us. to you, and results track consistency

our For have beginning as enable This of several progress significant 'XX executing comprehensive across has we and outstanding for streams under announced fiscal quarters, 'XX up the made work well growth. past Pegasus. our results organization future the as work at been we initiatives the the set fiscal has help in us helped

Today you with marks as of earnings my call of Helen CEO Troy. last

will become role, roles previously leader. the As in third current XXXX. the an XX XX X, XX retiring Noel in Geoffroy and be will C-level I Noel is March and in announced, after in founding global CEO outstanding years years my on industry, company's since products years the consumer only

been Elevate addition of Investor the Day to last the has her October. organization work very team closely In strategy as in our to working leadership rest global Growth for and she our implement and develop detailed with COO our

I look past decade, we the what As am an proud been achieved. have of has I leading honor. company's transformation back very the on

further trusted, our purchased, business divestiture and are goals, XX% we and in that Helen strengthening earnings by would existing and also to significantly but adjusted solutions When through building consumer-preferred on strategic brand what not portfolio take into challenged I acquisition results, only We by double sales brands and used the ourselves adored. our share. increase of asked exceeded we CEO of XXXX, to Troy far ourselves those became it per

highly established global a also effectiveness. services shared drive We set capable and efficiency that of

work every unified Helen powerful an most of employer our capabilities none been all I of as choice. transformation has to global of continuously together executing day company on of over corners the proud operating make single From associates the the countless do the alone. It helps and delight created. excellence, company. consumers can Troy, and culture what we past decade do creating global with designed our am each focus delivering a innovations relentless Our to improving

would take their around We engagement I ownership like sauce enduring thank our of to company, enormous drive They of consumers inspired the timeless brands retailers mindset. and passion, their of the for its people devotion pleasure in millions and world. and by the I values. serving am Helen to secret its Troy. never-ending are

newness best to come. of to the turn CEO goals. and is is the delivering one leave over the with stretching and its Noel strategy for would continuity, right has you balance that Elevate confident still just thought. remain is organization the the I right more I I call to to yet and like Before next Noel, committed the Growth fully achievable

better. thank our your you, I to With getting you To from have our stronger and close, use know of so and tenure. and to company to myself Noel. I would my on to input analysts. enjoyed learned and throughout worked to significantly that, I investors like I hard make you many

Noel Geoffroy

congratulations distinguished on And Julien. you, your Thank career.

a over and devices leader leadership powerful a Troy consumer with operating appreciation Helen foundation years transformed year global a brand Your bright consumables enduring genuine from a a stakeholders legacy. in Building XX company and a and with portfolio highly an for capable Above holding and lead on Troy last all, culture and organization. all a the outstanding and care into focused Helen has creating XX-plus its you to heritage, of create for company an significant you repositioned of value future. set

you organization in will wish you, all best we entire retirement. the The your very and miss

the Now let's third results the business to and of turn our quarter outlook for remainder year.

sales third than our in provided October. net outlook better we were highlighted, EPS consolidated Julien the As and slightly quarter adjusted

to free full be within our year year adjusted ranges to in for position EPS the fiscal the pleased of a sales, original cash are end We net outlook flow. and

maintained and have our midpoint we the current free what our outlook the beginning is fiscal of for year, provided flow. EPS For we for outlook as sales perspective, essentially the same cash the net adjusted and at of

improvement Brian will position. debt We also during to elaborate and expect his our gross further continued margins expansion of remarks. further our

In 'XX. Pegasus and effectiveness are enabling addition, efficiency initiatives in and on our remain track improved fiscal

to an our we provided X.X%, the decline and the X% Adjusted versus of EPS last outlook X% Third sales expectations. diluted was also same improvement over ahead slightly increase the quarter of period declined X.X% in October. year in or $X.XX net

During over we million expenses quarters generation strong the been quarter, flow initiatives margin of further continues points, with to still the and our in controlled gross our and a consumer of brands. environment our while a past we challenging chosen, free strategic is be on expanded macro XXX further over what have the cash initiatives the X talent basis we of delivering the our solid in investing associates outcome $XX and and built have cash a to testament global dedication flow. This the a by strength is

Macro reduced inflation types remained consistent on household make to we to trends have of continue all broadly and to consumers require tough in October. spending. since spoke savings Persistent you choices

of overall While and and continue consumers consumer confidence has to money experiences. slowed prudent expectations. other portfolio. entertainment inflation improved prioritize this Hydro trend their and has for hair with performed online our brand performed well and Osprey pace recently Flask saw OXO performed remain spending holiday and our with the somewhat, well below on performance tools overall, play We out travel

the changes. has new incremental organizational our points product year the channels in distribution, assortment we these and ways this I'm consumer environment. benefits improve progress expanding pleased we. with We availability to product expanded to environment As relevance are we offerings as have spoke price and so see evolved, our earlier this about of and this efforts from

initiatives As and prepare entire as we is for advance our 'XX part that set goals we announced plan to at fiscal Elevate of Growth working our ambitious Day. our Investor of for organization October the strategic

grew over the by the & strong expanded quarter. sell-through. the with prior segments. Outdoor channel net brand was and our to standout year new club driven X.X% product a Starting now distribution OXO, introductions sales Turning Home sales, in and period,

distribution Excluding the in OXO strongly grew growth several X-month our share in as bankruptcy, of primarily kitchen Bed & Beyond during our sale kitchen the gadget retail utensil driven major by period positive the market OXO core point as club the impact and overall the programs was Brick-and-mortar of of segment. with and of expanded was categories. Bath organization well bath, partners

also benefited attention from also offerings same online, the period well year, double across in growing categories. over sales by to toddler very the driven digits and product OXO success turn and strong entertaining. last online their performed electric consumers Our brick-and-mortar and input as holiday

Turning Flask. Hydro to

tumblers. full to of in shift As bottles category our a quarter tumbler, on-trend new from continued the launch anticipated, travel We from consumer insulated colors. some benefited demand the new including beverageware to of

sales tumblers be the for October pleased Tumbler by As mentioned line to demand consumer as retailers retailer reception. Flask well and our accelerated we Online continue out as travel rolled up, in and load-in. were holiday our both some for with to driven progressively Hydro September and previously,

for Hydro increased through saw also personalization demand My We website. our

Moving now The to benefit and brand that from out meet desires get to consumers' to innovations Osprey. travel. new continues

sales Strong demand packs, travel prior position Osprey compared drove packs. a of lifestyle and to packs period better year travel the wheeled inventory and

fall [ best-in-class lifestyle offering such innovations collection Osprey's travel redesigned for as on sophistication. AO series and packs New provide Sojourn ] well, The Travel XXXX Osprey's packs travelers. doing also of been all-new have adventure-seeking urban for comfort luggage and take

of and to driven Wellness and sales assumptions. the regions of travel product to and robust Net versus a prior acquisition by by now X.X% well sales season in lineup. softer exceed and back, and brand as growth lower perform strength humidification key the cough, appliances our to our a Beauty gears Germany continued impacts & Osprey's very which as year, primarily well sales cold Internationally, continues Switching with and brand expectations products. start thermometry growth France, of declined our segment. Britain, to strong Stepping demand, flu driven hair Great

historical and the the December. seen increase the mid-November, for year below and replenishment. have on the and was illness we our will ago the depend and incidents, season our since averages. incidents recent incidents outlook news impact third timing increased the citing season cough, of severity reports below quarter on for While results retailer an the will COVID illness Despite in assumes Ultimately, season cumulative inventory flu resulting now a cold, be the in

appliances we gained market assortment. brands share Looking while specifically, year expanded hair ago, versus our with our our on our retailers mass and at declined portfolio key beauty

pipelines. desired Prestige cream to favorite looking meet liquids better Curlsmith the thicker Braun consumer strong also of anti-frizz growth consumer by This by driven continue translated best growing delivering addressing sellers thickening the need brew collections portfolio, demand and on Drybar the among unmet helped In benefit saw one strong innovation grow consumers. big performance #X and the care. grew behind became strong higher international Curlsmith's Drybar's In to addition, of our quickly our hair our position wellness by double share markets. key digits, in improved supply textured by to demand. hair our highly market

and Towards leaned the we into our third saw and end pickup in the brand marketing of demand. for Vicks e-commerce support a online double-digit quarter,

U.S., if e-commerce and the are consumers As to and the brick-and-mortar key the share systems customers. leader VapoSteam market illness branded pure Water both incidents Vicks and pitcher market behind serve Filtration, faucet increased well increased positioned in and for In mounts in VapoPads retailers humidifiers, accelerates. demand

at our outperformance largely than we to international Looking from were sales Braun EMEA and in business, better Osprey. due expected,

travel. Osprey supply from benefited growth enjoyed in Braun mentioned, As from strong continued and increased demand

strong the Before as Brian, into motivated want to organization I to and turn is share to year energized the Growth that I era. our for this finish we Elevate advance call fiscal over

strategic our will builds help us successful several in Investor detailed introducing themes I strategies also for elevate level. Growth that the plan Day, to As multiyear am Elevate while on recent next optimistic the new

consumer strategies in we be of is obsessed all do. those One to that

dollars in the As is in and will we ensure sharpening equities foundation we elevated distinctive and choices. into pleased generated us positioning believe combined investment even the will by October, brand engagement by in and deploy I fuel this brand target seeing allow and I'm across are our definitions work. critical our with Pegasus believe focused data-driven more that brands, the consumer I'm more the pipelines. of supported our lead this to We with progress shared to clear, investment are to process our activation brand inspiring. This organization

expand our brands to We and available intend shopping. visible continue to where our are our more more making shoppers distribution, also

come in next-level so is shared do. to for I continue functional into that to believe also to for of era. would and will expertise to Elevate we we the of centralization Troy Growth our We services the leverage all hand Brian. that best With I the that, over Helen call yet like lean

Brian Grass

cash that results puts Year, further the strong and adjusted this our schedule EPS better-than-expected ahead exceeded I'm operations of New third net that report strengthened Happy us to margin, Thank Noel. generated you, pleased everyone. at expectations. quarter gross from in We sales, year. grew point achieved

flat annual year. despite same to marketing adjusted and Our compared was EBITDA leverage expense and higher operating largely margin incentive period lower the compensation last

EPS of of Rite during the charge exceeded a we overcame related adjusted as the Our to $X.XX expectations approximately even quarter. Aid $X.XX bankruptcy

make October. Pegasus we quarter. remain and during we initiatives which to from to and investments Pegasus incremental sales provided net Our the on Consolidated our in use track, decreased X% fuel X% to the outlook in decline growth is favorable X.X%

our include & estimated Bath of Beyond bankruptcy the Bed the from X.X% year-over-year reminder, continues SKU to a rationalization As outlook combined. approximately declines in

mix the in year, basis Year-over-year XXX inbound freight favorable and impact to was for XX.X% wellness These home less with last points XX% rationalization compared beauty into margin wellness XX.X% the and was overall. a the costs, and lower product in expectations improvement within within were to less the of sales partially XX.X% quarter SKU by customer mix factors more to due largely profit last the year. GAAP Gross compared operating outdoor. beauty period same quarter. our and for to in and margin period a favorable same favorable line mix favorable offset improved and

from in and annual of points includes Decrease adjusted quarter On gain margin in into to was bankruptcy Aid distribution as expense reflects $X.X El and facility overall higher a integrated $XX.X the a higher leverage, last XX compared operating primarily Rite operating fine-tune gain from as to lower included compensation same year. recoveries an marketing completed of declined the during operating the a sale margin basis less incentive network 'XX. XX.X%. period sales and new of fully expense, Paso we state-of-the-art basis, charge, GAAP that our facility million favorable our distribution fiscal mix our the insurance million

inbound factors impact in expense points & the and reductions, & adjusted reserve and to to by increase role and salary Outdoor These margin lower were a Home our by customer and within driven depreciation in On and more Home distribution due a primarily and incentive costs, marketing favorable partially lower compensation Outdoor. outbound segment related Pegasus Beauty basis, rationalization freight XX.X%, wage increased costs and offset SKU mix our Wellness basis expense inventory favorable higher higher expense operating to decreased XX new distribution facility, annual expense. of

operating despite reduced distribution wage adjusted period the lower by and and expense, costs, lower The partially at wage inbound year freight Pegasus These Pegasus. freight and outbound rationalization, factors lower were margin offset outbound salary Adjusted XX% salary costs and of decreased by reflects & costs, in favorable lower favorable commodity driven by line Beauty the margin segment's for was and operating more Wellness lower inbound mix. with reserve prior inventory operating SKU driven impact costs and a costs, lower customer leverage. expense

adjusted diluted interest expense, or offset to diluted primarily a the a adjusted adjusted EPS outstanding diluted share by incentive income. marketing Aid income in expense, mix. Rite rate, decrease tax These per less were and grew decrease by share. partially annual Net per in increase operating offset lower product higher a $X.XX due $X.XX X.X% lower to effective and expense, compensation shares in bankruptcy an the charge Non-GAAP $XX.X was favorable million factors

Paso previously the facility As we and million. third closed disclosed, quarter, of our on $XX total of for proceeds sale during the distribution office El

in of pretax quarter, gain Home recognized $XX.X third we $XX the million million of Wellness the was & Beauty and approximately SG&A, sale approximately which million & $XX.X a in Outdoor. in on During recognized

the continue of with compared ended of the year-over-year. last third of million quarter second strong a from improvement flow decrease of quarter. cash decrease which Year-to-date the million, debt the to $XXX compared in million was cash million the period to generate with the $XXX year. We million flow $XX quarter operations $XXX operations end cash and to same We from million total an $XXX sequential is of $XXX

of X.XXx same was year. X.XXx the to and at last ratio net compared second Our quarter the at leverage time X.Xx end the

fiscal Turning for year our full 'XX. to outlook

sales charges We lower restructuring are to with align diluted also EPS We're EPS. for reflect adjusted the the and fine-tuning raising our to GAAP EPS range our and for diluted range adjusted diluted net outlook expected narrowing expectations.

expectations. We free maintaining and are cash operations, ending lower maintaining slightly ratio capital lower net offset outlook for flow leverage slightly by expenditures our reflecting cash from our

income lowering operating originally outlook lower less than growth depreciation mix are adjusted incremental a and we compared impact investments Finally, our our The slightly to income expectations. adjusted of lower back adjusted to favorable reflects lower expected. sales the EBITDA reflect add original as a and operating

Our consumer our lower performance which than outlook averages. year-to-date well and sales and factors continued was season uncertainty in on year, view line incidents of softer-than-expected pressure holiday with historical spending, our pre-COVID as as prior illness in the

Finally, bankruptcy healthy that we to expect match This SKU I the 'XX. year-over-year to $X.XXX retail referred during X.X% net now to sales expect fiscal fiscal more and which $X.XXX Bed of sell-in $X.XXX we of continues and inventory billion the to of levels, range of and sell-through unfavorable continue $X compares so & in 'XX earlier. a will billion is consolidated remainder Bath our whole between impact to as reflect of billion. at Beyond approximately believe combined as closely rationalization previous We billion the

by segment decline of decline Home we X.X% the to X.X% a & terms for Beauty fiscal full Outdoor year, X.X%. of X.X% and of Wellness In sales the net & our outlook expect to now

to to year of $X.XX for previous of EPS expectation compared $X.XX the to We now expect $X.XX GAAP our $X.XX. diluted full

to $X.XX $X.XX EPS outlook our previous expectation adjusted non-GAAP of diluted $X. to for We to $X.XX range compared are our narrowing to

to our the Moving non-GAAP to effective now effective outlook. year tax rate adjusted rate tax are fiscal our range for maintaining expectations tax of the for XX% on full a expect GAAP XX% We million and range compared to $XX of expenditures capital 'XX of our between $XX $XX for million. XX.X% of previous asset to to XX.X%. million $XX We million now fiscal and expect expectation

to million, cash slightly expenditures million flow We the to operations now to to We mentioned. expect X.X% EBITDA growth. capital reflecting to implies expectation be compared just to million lower X.X% growth to slightly $XXX of million, flow $XXX X.X% range from previous and as our of continue lower $XXX X.X% cash of which in free adjusted expect $XXX of

We leverage the the end X.XXx Xx original are full maintaining end-of-year our I'm net closing, pleased results fiscal our net of to by within with sales, ranges our of free In outlook leverage. debt outlook adjusted flow and end year the EPS, ratio year 'XX. to position year-to-date, us which cash of for

midpoint beginning outlook our the the More in gross of is pleased specifically, fully same and our for the with year. net also the the maintained our outlook flow of fiscal year-over-year profit throughout provided as adjusted and and sequential and performance I'm revised leverage. essentially debt at free ending for we have improvement year, sales sales EPS cash

we gross Our teams sheet basis accelerated cash flow, incentive adjusted shareholders. generated free are headwinds and repayment our points, doing in balance return annual largely Year-to-date, $XXX a consumer debt lower of million and capital navigate maintained well the EBITDA pressure environment leverage, interest great expense. structural productivity, despite margin margin structural job headwinds compensation, have at improved improved by and continuing operating depreciation XXX our to as profit a to as higher

at turn growth. QX our objectives normal X% back in our average I'll expect expansion outlined to to achieve look margin and 'XX our XX April. we forward outlook growth we that, on to XX% EBITDA adjusted sales, which X% adjusted allow and Day Investor And continue are when net timing provide basis of operational We providing operator of the for fiscal to EPS least for report that results questions. with it to to us XX points our to rates improvements in the annual We fuel the Pegasus

Operator

[Operator Instructions] Securities. line Bob from Our question CJS first of the today with comes Labick

Bob Labick

pleasure Julia, you retirement the call. be all. I and such happy in just since congratulations year wanted off It new And to you obviously start work your once by morning, been on saying together a to again to it's to earnings last has learned want hands took else. as we to and Good a is company extreme know you, from you on Brian with ton and of I to Troy and the over congratulate CEO the good transformation in everyone and and the Helen Noel led, we've success and you of exciting.

So congratulations.

We have it we always and enjoyed will.

Julien Mininberg

much, company hands. you and comments. appreciate Bob. of very much great I the kind Well, your And thank is very Very in you

Bob Labick

Absolutely.

last few months, the great guidance. in giving you've a with us obviously, already recently a already of So and Day ton given Analyst information

just speaking white back and So kind and I on of fiscal Project is opportunities expectations questions, my marketing an regional to for and for wins about be wanted for I new was space a inflection you organization, milestones hoping 'XX, little to I sales year and growth. to ask and Pegasus the update going next maybe think

how you're And talk we're regard in how so up about in regard. that and up maybe set that set

Noel Geoffroy

Yes, Bob. sure. Thanks,

that this we in the the we've some couple that track. came on year remarks, due as a a on bring. Project couple but one and lot touched you mentioned Pegasus opportunities in reorganization. the remains the those one in stream they from savings today the of the are and So most things of of And And changes, that we that I'm not to also of work quarters about are last were as talked the mentioned, areas those excited our was effectiveness the about of that efficiency, around only

white single customers, opportunities. segments. allowed some what business selling across of And build regard do joint organization calling choices bigger of one them as really the is, And kind in distribution that's with where one, of also folks various just those see but our one relationships company to large the customers versus plans, of across more space Pegasus biggest entire the we identify part portfolio organization strategic with the our of we regional made American that on the the where created North a market that

distribution We're sell in others there. can developed, we've they we of we some have an places or category already and success seen places we're products We've not the of might sell not into with where our kind in. some portfolio levers more and we've so of products. to gotten looking continued our where dollar to got gotten we've certain the is get the for of as opportunity channel talked one of those currently identify are across continue And OXO distribution, those And We've might and more things of kind some developed of -- filtration channels about. to mass that mass be come into key into with 'XX we'll we see that we've water -- growth that's fiscal as going up. our of planograms

that was Pegasus of the year. part this of a saw in that we that are So sort on big efficiency

those the about laid that on we that's that As cost or majority and leveraging fuel classification to goods use the portfolio some back good of Stronghold -- And comes and of we again, that They're of saw. feel optimize. really the that we the new Invest from come to we very track, initiatives can that the business where next go play. into out, Grow, initiatives. a reinvest year, into we the in bulk becomes part the savings bigger And

if opportunities we don't attractive. to that appeal able benefit to I best in are doing right? up? focused most get think is guess, really incremental it know the Brian, we're but there's the anything there, We're way, a double fuel, ROI we invest build a I else want you also and So more

Brian Grass

over fiscal the year. savings an of say No, kind do of would when 'XX, best that we expect I give of idea that of our the we'll give cadence outlook our just course you Pegasus for we the to

Bob Labick

throughout Great. come at And X% in kind then brands way year and then Or little in of that just increasing that beyond? to Day, will on you be already? investment the savings as discussed. bit. just next Obviously, targeting to Has from the started implemented that you X% a in Okay. targeted build and Analyst the mentioned

Noel Geoffroy

where There was It's we as quite we One that personalization are over lean well. travel couple a Flask great we for we question. places consumers in did Tumbler that holiday I say, have offer started can. personalization, recently. the in leaned of already commented, to a complementary would we season, where Hydro

less We also on bit Amazon. opportunity a developed online. is an leaned in into leader saw but Vicks very brand brick-and-mortar, we market Vicks with strong a

online And our leaned with support performance. brick-and-mortar performance some a in so double-digit we increases online without and marketing, saw in there in really seeing dip

So lean those 'XX continue areas of more started identify of as to we'll already our and that we some build we as that, to that the plans and are steer into, do quarters. in fiscal coming them, we've the

Bob Labick

Okay. Super. Congratulations.

Operator

Our from Grom Peter line with of the next question comes UBS.

Peter Grom

you say in Julien, all the wish the thank I but want help I to for and nothing you best retirement.

going I earnings, And has today growth in guess a of we that confidence the know consumer environment So seeing XX% quarter. how to could informed delayed. But degree you're we view be in demand see ordering the we a in of I what or growth. But really you October touched on, to And the the wanted will there April. growth your even be guidance of a return get see continues to fourth to of retail does return to on return kind to to when ask back kind terms could changed. about I actually top the line Obviously, to still growth. seem while

Brian Grass

This little Brian. you. maybe look differently Yes. I it is a bit than I at might mean,

our with sales course of year, slight ends points of a growth fourth expectation drew at fourth quarter. plotted there's you our it -- our performance line growth or I end between the if the over the think of quarter think and high kind the a the I of at steady for very towards progression

expectations. So think our growth consistent and path say, much it's line I I very towards and reliable, very with would actually in a

holiday up our season, as We and the softer versus I and in-line at I and down in on season year. the would this narrowing that. a cold, lower a point, and of of the range level overall end, did slightly fine-tuning we we slightly And on range view the slightly mean, bottom end explained did last for that adjust high period reasons just the for incidence fourth an full the flu we're why same projecting now we illness the had quarter.

we fiscal my are outlook in and in And on nothing still really has from much feel much So we we're I targeting for the growth track QX. mind, that gave very 'XX. changed

can't and wouldn't but that over tell that or what the that time targeted, that provided has outlook do we very we our doing into long-term have you we like that I until much we're achievable looks work growth. feel exactly goes all it's

Peter Grom

cold, super just of quick that's a how I how much us commentary. guess outlook? it is about can start. understand on think the to you much the maybe of No, mean on cough, a having marginal season help I when off changes guidance. slower the like you But to Obviously, maybe gotten flu the follow-up helpful, weaker maybe Brian.

at and from it to I And incidents seems pertains guidance here? the of like as up, where of trying least which they illness kind versus guess, Just we degree me it flu. should of could pick source today a cold to be cough, upside understand around this visibility have, your are

Noel Geoffroy

I is the that. in below we Sure, which quite news remarks, that in look and it bit prior meaningfully year as would about doubt below Yes. But hearing is news about, levels. what of including prepared a COVID, reality bit, lot in Yes, quite literally year all terms November noted cases, like were and comes a the hearing and it say data about in as And no and we're there's the it feel I prior the noted you my illness we're it's a we the at December, Peter. in both levels. what is is the in

quarter, it upside things Now depends it's timing an to depends be that impact make changes severity to and happen the quickly because accelerate, in our and it fairly on to if that got all fourth for meaningful to could order a that our fourth on the but of it quarter.

that made did the outlook. And our that's we why we adjustment in

Operator

James. Next Raymond question with line of Tong the Olivia from is

Olivia Tong Cheang

question first been is Best have with great Julien, really around Great. that and you. of working with sort luck, of visibility. going My forward, all it's planned you

about But and in into through to versus mentioned it place of is think a mentioned year's last of you retail terms view visibility versus sell-through. you of with that and improvement of as a have destocking year, up about You better look Do boiling that. couple maybe down steady of next commentary your think been kind the sell-in this head at are year. in different in the fits you We terms year. you starts There of the finish performance just the on in this towards year, sort sort into obviously respect -- head this done? inventory as Peter

where be this building the some upon put little there, bit embarking on ] about and to As are you of think about next a year. about and that year helpful with you launch, tumbler think the and innovation Can next talk just year, blocks of would respect as for -- the finishing year on some reflect plans a tie we you next that. [

Noel Geoffroy

Yes.

think year Growth. we X -- it's for of as about So Elevate it's 'XX, fiscal really

And we'll in before Day. then that and December, -- pre-budget month we on But February we together are things process in the to of very full the in we as our this plans look similar year. meetings continue next what the had discussed so October my for when kind are mind and provide Investor of now, some that process we're those later pulling

it first in I prepared remarks, The set and clear, foundation. kind to of is, really mentioned sharpened the brand my equities

can investment that best it focus put Project we we through start behind that kick that growth so incremental and will new in. chance investment will resources this the have for and that best ROI then strategy driving that to the classification think the Pegasus against fueled by those really our portfolio And talked opportunities about we really we our

As little year Brian I project the mentioned, AIP, some this talked Pegasus headwinds of a we but et the interest kicked of in it this offset lot a about, of bit expense, the cetera. the that year, efficiency

And be those fiscal I year, couple business. key earlier expect lever then we distribution mentioned closing come I for seen fiscal So to in already wins lever of this that 'XX. that into in white of next another opportunity have is kind have to more really expanded more us a the back distribution. We've that space the Bob a significant to year, invest but of

of things think some be would are those drivers. So I the that be important going to

we every an as each will well. do and products we have pipeline great out also as innovation year, we bring new course, some Of

Do and So build that to the what on Brian bring year of Growth we all Brian? what of those confidence at shared aspects kind in of want for are I have Elevate you on fiscal Day the Investor 'XX. and one

Brian Grass

good. is It Nothing.

Olivia Tong Cheang

know on some had Day, you -- discussion also acquiring. And it. looking you Analyst looking made then Got I mentioned at divesting, at M&A, at

update give selling buying in you your your as at possible? match leverage has Or look also, then is improved sort to as would an on could If that? you those -- debt year. before something? through of something obviously preference Would you the And us much profile the

Brian Grass

going Yes. in Olivia, mentioned. the this I there's areas both activity is Brian. on of I'd say

always agree the something say acquisition like we effort acquisition. coming behind ratio doesn't I need I before point putting Of think we -- doing this would anything divestiture that. we're would imminent divestiture the or mean and course, to there's leverage down. with activity But and potential potential the at don't comments that do I about consider both

I think available to us. is acquisition

a bit processes sometimes, of execute. time these quite And take to

before rates have to we our environment of people think interest so a the view rates of while as because time and than And some completing we view actually an And a honestly, be I with strategically might think maybe acquisition. we transaction. I being I'll a more even lower really, little opportunity end, more on environment, interest rates other And to the to this in delever comment end aware have I is, more barrier to the make of of barrier. bit multiples look kind at of as interest getting a things

I that something the so really low advantage it good take maybe us valuations looking value. find and quality assets gives and to and get at for think of we're try to opportunity

Noel Geoffroy

approach is, would we right? key. acquisition consistent, use, build only to I our remains make better The The that together discipline, is the criteria the

in we place what's have for to said, in Brian as continue debt is to more interested we we gotten and look that can something Osprey with might not may interested the great on that strategic we be we a there's is be even that market but available, did there, things if So we what a where out like to be think fit. also our see

Operator

Linda next of D.A. question Our line the from Bolton-Weiser comes with Davidson.

Linda Bolton-Weiser

Yes, hello.

if appliance could was I wondering comment on the category. So you hair

get whole share, in so And better. at the it is on good. some higher innovation in the like the seems end. needs not growing nice just So the to maybe of what you category? just kind Dyson gaining things probably Can comment doing is think market of bit little it you and mentioned you're category category like Dyson's but And kind order influence a that you

Noel Geoffroy

Good Yes, sure. Thanks. to from hear Linda. you,

performing earnings I total, the this what playing have I tools below hair out, hair performing the lowers when sure price for that. $XXX tools. period, -- better. the Dyson year is I've of kind may and to end, would the part or is we and make It's our a to of that today, below. the higher We in -- of in part What say calls, here's But points is mentioned So of a in couple part, the is the work broaden category look is items our category we at of be what as above in on few especially range. calling that most more and this the not that's category play which you're the full as in well. we're over and we're the assortment seeing across holiday that $XXX $XXX

price straighteners, positive $XXX And in mass sort made improvement gotten not has cetera. that again. entry some the share of of end a where impact higher that So of us we're trade seeing irons, point, that just et that the broadened of for that class also now we've but hairdryers, curling assortment

and in well kind of we we the $XXX remarks, not hair was softer the for came that As the mentioned category in performing holiday in of tools, and particular, anticipated, less on than holiday down really as to us, it period.

It's it's really what right of going terms points it's whether time, fundamentals. sure opportunities and take et take or better innovation great get and consumers' the that result, needs, really the it's their the it's cetera, addresses -- it's to claims save we've making -- In got them pain Volumizer whether as do done a that. And most going to to very to that's past. innovation forward to marketing a into from standpoint. for that they're ringing activity part move to that success us was and reach fiscal We've them has when of certainly in and team we well plans receptive. where an the continue But our the 'XX that

focused do build and how it. know we how to and understand to on that's consumers' doing. So team exactly needs know those what opportunities, We the is

Linda Bolton-Weiser

quite And China, I just everything. post-COVID talked to first season in wanted then a they're flu bit flu and going I ask, through the season. mean, you about certainly, a But

China. your And in seeing you Are online Is very that past, the China. portfolio? of -- severe in right in a So you in it's part is well very I thermometer now? Braun your understand mentioned growth been of that source strength

Noel Geoffroy

you're Linda, are, right. exactly We

is our in are of growing interesting were lot growing that right sold. whatever could. looking And run-up we in they developed were thermometer We get quite the illness outside really is the and there China people point, in to just and U.S. no-touch are that no-touch is both Thermometers as Europe was absolute level out really a of in we're COVID, part well of at based seeing now An business. Braun seeing of performance our a of of nicely that a phenomenon that over portion the you're the the Asia, as in and kind higher very during there which big trends share on calling thermometers, business,

business. it, in to have a strength the realization coming a are really of et of on of than and the the and ended, thermometers the and the lot to there we ear in And and it's for making driven as less that the consumers monitor lot brand accurate that ratings you winning that, on Since combination. kind media, consumers trust that really then backlash we have by bright ear accuracy. social they're coming of reviews, a a That's has monitor top cetera sure come Braun the seeing pandemic thermometer the very for -- spot they're we're the layer

Linda Bolton-Weiser

just my on then last Hydro is And question Flask.

I've in online Just much so finally, want say farewell luck better learned why to -- the been just Julien. what why root best is than And a performing of much, so Julien. and everything. with to I with is It's pleasure then brick-and-mortar? you. well it working of as

Julien Mininberg

Linda. Thank you,

Noel Geoffroy

would cetera, what online here's November. at down that went you I to Flask, brick-and-mortar. Hydro the I whole on better online really brick-and-mortar syndicated over it see the holidays, performed one and I holiday et than than and trend traffic more some were was say. We So is it in think of mean reasons in think overall the in studies, brick-and-mortar looking than more down December I

I as place and tumbler so just online most -- a I this than a this think I skewed more well. leaned categories season that in brick-and-mortar And really cases. we was holiday did was in into. most And that in then travel The mentioned,

bottles shift to continue see tumblers. We to from that

both also increases retail on online, into but side, Hydro the we saw in significant holiday was we on partners that our an really area personalization really over period with so that the DXC own And Flask. leaned

side online I think of perform the that made so And really offerings those extra well. it

Operator

question next Genuity. Anderson of the Canaccord with line from Susan is Our

Unknown Analyst

Susan. for on Legg Alec

gross just you work at Troy's in longer story. to My on your all of of in First, career and and your the see well of margins to term. wanted to quarter also as step very successful we share Helen. execute long just the next we're question Helen congratulations Julien the And excited

gross X SKU much how the forward, we looking quarter, between how margins rationalization? should lower by this expect to And inbound buckets? out versus For the freight play driven then was

Brian Grass

other some But freight Yes. less there or -- now less quarters impact parsed SKU starting out It's the a anniversary we've is -- broken the factors. of get other really impacts reduction. and from we year-over-year the rat to of inbound specific meaningful not as versus publicly

over beginning the then of the year year. less say, and that pronounced of would the becoming I less more and So the at on course

than to degrees less we to but meaningful, fresh had -- it in still SKU probably look Pegasus. and Project very went This as we expect QX. do through continue we kind forward. a was meaningful go rat, QX maybe that of So as it a smaller meaningful impact we been at in

people had don't meaningful now expect I get we that into this that profit so it. we want kind And could revenue of margins. going profit gross that to impact year the from But the because impact did in we seeing you're

going Hopefully, drive we'll like of less, juice of some less felt and will be that worth still the the but squeeze. revenue that impact the forward, we course you we'll have that profit saw So the is amount be that -- able on this year. to get over

some you meaningful gives answer that QX. question say hopefully, fairly So directional your in they're to specifics. without both I would

Unknown Analyst

anything better the top And That's the quarter there was I in top sales guess, for the that top line to it. then led during came sales of -- helpful. in and the the year? changed the what on Got rest guidance. narrowing then also of ahead of line, quarter line that so pretty

Brian Grass

kind call the would specific. leaned our the like where think that. out we marketing overperformance really slight of there marketing that quarter I'd season with strong over higher taking cold, really spend the spots I mentioned activities, -- of and flask elaborate I'd and into things the nothing say spend into And bright online. Hydro I leaned drove sales the Noel probably free we X our We sales the the drove then engraving advantage in those into some on and areas expectations. larger leaned perspective, of driving a No, are really Vicks, we online versus other opportunities. execution, flu say from and is and things good X

Noel Geoffroy

Yes.

the a The quarter. prepared was other OXO in called in out the remarks, I real standout

growing If point in you take really kitchen board, segment. out that core bankruptcy, share the Bed Utensil strong Beyond across of Bath sale the &

So well. Osprey OXO spot. continues bright And to a perform was

had the demand, of all travel ago year We the better and portions a really strong the see different we across of than inventory position growth continue to business.

brand, and lifestyle with I And the international. across. also Obviously, Osprey. bright there's the that travel we tech a of in mentioned then spot, duffel was nice path Braun brand and and both the that extend heritage growth is but International as

Operator

Our from the next question Oppenheimer. is Parikh Rupesh line of with

Rupesh Parikh

retirement. Also with of best Julien your luck

on expectations can if sure about So Brian, just just margins any updated think you last give gross question you margin, how I'm not for QX. the gross in

Brian Grass

you to say could off with maybe would QX. similar slight QX I of expect expansion

Rupesh Parikh

going there's XX% here? Okay. in build that of gross margins, And That's plus you to going opportunity forward? think steady can And of? expansion helpful. Is new Is now for about a range. that forward, like state we that this as fair still off think then the maybe base you're from

Brian Grass

yes, goods a fair assuming off with to freight significant Well, I or think I exogenous fiscal commodity bit not which changes a we think build of savings build sold Pegasus in 'XX, costs we're there's then, of, off expecting focused. that it's cost and base is in largely

Noel Geoffroy

the build the And only is that get also of brand portfolio I would benefit. have on you classification kind

as the Grow over we to time. Invest put also a more sales that's help So into mix,

the investment, classified brands we've we're remember, incremental and -- as that those those in going in margin more grow, higher to portfolio. that are to brands now focus So it Pegasus we've are them the on put invest the we

Brian Grass

or the -- profit to and the opportunity because the able see that expectations a we achieve in margin on like that's would about, was weren't that year point. Noel do would we 'XX. we fiscal Yes, say good for underachieved 'XX, actually fiscal that that gross versus we I to sort of our talking to do degree Noel mix

it for say where like wasn't wanted forward. I where but it going we be So year, needs to we feel quite to be this can our base we would fiscal it get to

Rupesh Parikh

guess, -- question. And follow-up I then my my Great.

So cadence out like at perspective, played look December, as then And versus you as trends POS backdrop the just promotional holiday of the your you data. how the just look of a in if at that look the at from trends, November, terms you expectations? of season, curious some curious

Noel Geoffroy

Yes.

I So trends. what for Rupesh, seeing in in holiday us, broadly spending performance say, was we're with general would consumer line

travel entertainment places. spending are consumers where and those of focus the other So of discretionary Osprey kind more well, OXO dollars matches performed than that and

hair online Hydro we the tools little mentioned, are our softer. those parts We've Flask that well portfolio got performance a most holiday and performed bit As of was exposed. the probably -- are

during we've call touched We've the that illness today. big got on obviously our portfolio of the portion

is relevant, everything if your So holiday question? was of the you last What not part will.

Rupesh Parikh

backdrop. promotional Yes,

Noel Geoffroy

Yes. I What unusual. would say we that say general across is anything started hugely it earlier. in holiday didn't would I see

portfolio, different areas. of kind We things deeper look free We waiting in dramatically different So way lean deals, starting we some not Flask to Black as retailers saw it a meaningfully have of a Hydro the not but that the customization. typical And the of or did better starting that the to category. but season, discounts. our kind of I've I some and their really all had we we mentioned levels not offer activity into would of offered offers bit a Friday, to of is on couple at competitive earlier online.

items, special offer brought but that, some we special an on difference that colors in year-on-year back in did like we had dramatic We a things general, not what promotionally. and

Operator

over this we the to And call end question-and-answer session. Noel remarks. for closing Thank you. the time, turn I'll At of the have reached

Noel Geoffroy

at for us X the in over and to Troy. Great. and speaking has well ICR with everyone joining Wednesday, you, continued at many of forward a of interest days great thank on as look day. as virtually I everyone, you Conference Thank you, next your CJS today hope the for and We Helen

Operator

conference. today's conclude will This

your time. You thank may at participation. disconnect lines your We this for you

Helen of Troy Limited (HELE) 8 Jan 242024 Q3 Earnings call transcript