HELE - Earnings call transcript Q3 2025

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Operator

Greetings. Welcome to Helen of Troy Limited Third Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Sabrina McKee, Senior Vice President of Business Development and Investor Relations. Thank you.

begin. may You

Sabrina McKee

Good to operator. Earnings Happy Year, New Call. Thank of morning, Troy's welcome Helen XXXX Third and you, everyone. Quarter Conference Fiscal

financials The business statements. trends. Grass, Ms. as more Geoffroy, discuss the on morning in with call current will Then brief then Noel agenda the comment provide our CEO, will will perspective on a forward-looking Brian I review and and company's begin is of discussion company's for the performance Mr. the follows: detail CFO, outlook. this some

open Following this, the we Q&A. will up call for

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

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

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

section or GAAP-based financial by of non-GAAP contains can scrolling site their that Ms. to company's release website the release at inform copy page. I the Relations of been to the Before and to corresponding the has the tables posted be found the call today's related parties www.helenoftroy.com. measures that home bottom earnings I The navigating Investor turn to to over by would to earnings interested like Geoffroy, all measures. of a investment deck And reconcile

Geoffroy. the over to will now conference call I turn Ms.

Noel Geoffroy

New Year, for and you, joining us Sabrina. you today. Thank thank Happy everyone,

within range season cold on consumer the a We with provided are purchases October despite results cautious discretionary globally. cough, and our third we flu spending continued in outlook are and that pleased quarter weak

is facility the Tennessee heaviest pleased are of our also well. our running quarter volume handling as We distribution that designed,

efficiency to by anticipate continue labor our year-end. forecasted fiscal We we will achieve

also to reinvestment our further Home with and on brands in quarter positive during our business. portfolio. margin our commodity We and costs, revitalize year-over-year particularly for improved and 'XX and fuel in our with product results, track impact on remains our Pegasus lower efforts Project progress brands the & gross having providing made fiscal on a critical Outdoor reset profit

see continued on our initiatives. also We long-term progress strategic

of to ], American to organization those formation As through where gains. was our strategic shoppers addition North shop brands market the you more of RMO which regional in is international one the RMO available incremental NA distribution [ may recall, our intended the priorities or make

distribution gains continued we distribution fiscal During year-to-date, by year-over-year. the expanded from XX% the half grown benefit have quarter, to in won and the we Fiscal further net in the of 'XX U.S. quarter. third our first meaningful distribution weighted

also have of a gained a and We meaningful through internationally distributor partnerships. new combination new channels distribution

and our we initiative progress have is of analytics data strategic facets across use of Another business. on all made

investment prioritize marketing continue to marketing we select brand best our For mix to across the data and opportunities the potential. to also example, see we ROI use where our modeling portfolio tactics

share share channels and with share markets contributed measured our internationally. POS U.S. across year categories categories market These must-win our in this in X or growing multiple multiple November of to key efforts through maintaining improved growth and fiscal

quarter, our to the of of we maximizing strategic the shape long-term important on third Olive closing to Subsequent initiative a and portfolio refine the Another our announced focus acquisition growth. of & is profitable end June. with

of and consumables excellent broadens associates is products of portfolio existing to the leadership continuing excited a highly and beauty strategically Olive an Toy and hair us our June of M&A, brand of relevant welcome the care Better category, leading impressive We The Olive passionate add Together Helen high-margin everyone, & and democratizing June family. goal high-growth team our inspiring. & adding financially. is unique innovative-driven & our are very visionary to nail for portfolio model vision and both brands to fit to immediately the that of and Troy. consumer accretive award-winning performance, Olive business engagement beyond June's and complements to Helen with are

quarter introduced they XXXX outperforming expectations. were Inc.'s mass, new they in awarded in the Beauty and polish a Most Breakthrough third brands Beauty that platform gel recently, is

the of the of brand's previously, with & mentioned June continue to management see potential. we to business, of and and the drive will the leadership Olive Helen We Troy's associates strategy team operations As on support significant availability working the realize with both increased and in distribution. build growth potential to help innovation obsession commercial in in as to of strength to leveraging the continues the consumer June Troy fully Helen expand team breakthrough addition and brand's capabilities Olive product &

and both to to disciplined through our success remain it We long-term approach and growth. the evaluate for consistently portfolio brand potential acquisitions will in shaping company continue and to divestiture position our

have for potential will acquisitions, Together brands to With continue are strong our financially criteria. growth we Better accretive global that look and meet

[ to performance across more remain flu leaders our did improve respective Beauty to growth Bron their and and the categories, those beauty, categories third quarter weak portfolio. with its well know turn the fundamentals as Home all brands. in performed X to very season. progress let's in Vic have work brands. focused we but further cold In & Now Outdoor make even there is actions business and been done, Wellness, of cough impacted be with by ] we In

in International growth Home & & was ] in Outdoor. quarter X.X% strength by the Outdoor. Starting primarily of [ driven a Home with with sales highlight again

line and storage was in food continued with continued shelf OXO stores. and higher by expansion LATAM. distribution at as and productivity In OXO, gains sales, growth kitchen over the EMEA Walmart our driven Walmart well in For growth at as organization, by of across driven Walmart X,XXX international October, introduction pop notably

specialty consumers' in kitchen spending. post-COVID category channel. dry share additional OXO at expanded Walmart. the U.S., OXO grow in In and store mass gained same Walmart distribution. food retailer the sales well-regarded brand a continued momentum ago, market tot where a the OXO OXO momentum and we are year-to-date driven sales November, storage with In early period the shifts the growth distribution year but significant leading days, including holidays our the where positive by strong approximately opportunity fiscal expansion this grocery also cautious have excited seeing into continued at began has by hindered and It's continues categories key to categories, its an versus are been post top momentum XXX the tests for and from line. to normalized utensil

line strong As offering mentioned tasting Brew strength a the performing concentrate in well great coffee was Brewer in Shopping maker, coffee week. options for rapid with Rapid new last minutes. cold building POS less portable Thanksgiving and quarter, Amazon we recently recently launched is the very our coffee or brew our coffee important than on relief machines of hot on Okta #X X The and brewer during the

favorable ] influencer winning of just consumer ways media a channel, Brewer the Barista Opto YouTube and ahead on coated Thanksgiving. the We brink OXO introduction serve Era review received trend social Board exciting with [ coffee continues massive of Morgan as and strong also to in ceramic in a metal their of engagement. November, Rapid the informative bakeware video and highly respected ERM posted coverage a

Flask. Hydro to Turning

Opto's we Hydro distributor partnerships. on driven and create Osprey replenishment stronger-than-forecasted a International by within We and momentum Hydro quarter, gains opportunities focus through distribution also are distribution the achieving leverage to pleased in POS water Day quarter tumbler new than lifted our drive best bottle and LATAM initial and fuel set off post reflecting class were e-commerce as brand's on stronger during Prime and at expansion sales by with the seller the with EMEA, strong bottles the Day both performance brand stronger Costco. #X target at Growth continue Flask in APAC attribution hydration forecasted and ranking to positive event. the driven Labor the innovation, offering that strength revitalizing and marketing. during was essential overdelivered

additional and to extending [indiscernible] placement with engagement and the Charli both of as housewares section also early continues brand the at popular more target in seasonal space gifts Flask is Hydro media offerings social sporting such tour. colorway, through in the its goods quarter relevant fourth shelf win permanent the Sweat its and for festive the drive holidays, sponsorship content, options XCX to highlighting at continues and personalization the

the with been lead and commitment proof and online We consumers to included of has the double-digit company's momentum for launch Osprey The lives. extended for also The remind Travel been bottles Flex sustainability to content of for very sizes cap XXXX brand's and of connecting brand's long-standing products well honored communities. drive rigorous that products loan. expandable and with them Hydro a seller the daylight pack. support all recycled list top were Chubb also with help pack Split, growth daylight fit is regions. the the matter them fit in of across travel top-quality everyday textile of receiving outdoors and all sales tumblers. with its provide The XXXX body of launch reviews. by, brands through supported example, has Flask's internationally across brand various continues successful strong collection The in daylight testing X took of since did increase Flex use that Amazon Strapp our for our We that the fast people its main its our its the the fabric all commitments of opportunity to a the Osprey XX% local

its elevating planning discipline. shipping am went integrated the This Europe. that pleased with our and successfully During system our have from with in distribution our BXB and this of I the execution with operational integration we successfully these a the important Osprey ERP quarter, example pleased business facilities. direct-to-consumer share network live on to we and team's focus strong is am our issue also of into and integration. and been minimal our Osprey an I U.S.

Beauty Wellness. Now & turning to

the softness key many with Beauty, the portfolio. POS spoke continued third last quarter our we For across of quarter trends about in

and top strong online, momentum point for reframing Walmart mass overall In at see both our is Looking category at above points Revlon launched category. XXX appliances, from X volumizer the at booster the plants for the reflecting clients hair within price in demand we hair The early drove value and October Revlon brand's of brush, #X appliances shop $XXX. stronger units Amazon holiday Revlon each dry and growth pallet liquids year-on-year categories, growth. softness remains the kits in and and [indiscernible] end in to sales gained Volumizer [indiscernible] continues high moderating. holiday the selling tool through to item bifurcation clarity holiday. December as activations the cost interchangeable Despite for a significant new with climb hair FAUs. The of which price are and root and new in blow at below continue one Sephora the triple appliances, and of

forward, benefiting brand. Curlsmith of pro the & bring this extending have and day quarter, ideal growth the Looking on appliance we for across beginning At mist we we promising some Shan, wash innovation our innovation momentum some and side news Shake both the refreshing to is to a that help back revolutionary investments believe is your look. from incremental marketing. launched

of quickly top-selling has It products. become one Crosse's

the in ran marketing insight was lift instructional consumer driven the tells Friday we and had content. up is new that year. intended campaigns strength consumers retention significantly, by we ahead awareness efficacy Curlsmith driven seen DTC the that Black saw their product a last impact. to and days we have biggest in the Our brand of us

focus fruit see awareness. brand to to our increased excited increase are bearing on funnel top marketing We of

wellness our to business. Turning

prior Offsetting discussed similarly XXXX. Braun POS we Subsequent new are to end, the lowest expanded the As ], APAC. past excluding rates Walmart, a well and to the last X last rates for quarter, illness below time at are and distribution through this in saw historic level averages. season. to are flu and remain been anomaly contributing or start quarter U.S. years Data cough through all the Europe trends and rates shows to low COVID December year of cold we weak year the indicates that the slow Illness and brand. data XXXX CVS, below has [ year on November, same below at XX Costco illness in gained which Thermometers positive down

and gaining thermometry thermometry brand market and value is message by to brand overall the bottled that While market leading is Petro brand on and over continues the and water. pipes local shares. have maintained to highlight leverage this #X and humidification quickly remains Braun decades. focus as Pure replace save Braun contributing the softness PUR humidification #X strong POS identify category. we're share relevant in Filtration, in categories, municipalities respectively, over in far to share The Vicks by the the activation continues versus Rx brands, Vicks with In can and the in per their remain in the grow Vicks #X coming highlighted also government's systems renewed put the the water, for sinter directive and month to to lead $XX framing drinking Water team

access relevant initiative great examples available the As focused on educational leveraging initiatives reducing water. to on website PUR support water quality the timely them to lead while the luncheon activation. commercial The selling strategic educate help challenging consumers resources brand, continue access executing $XX,XXX #X we Foundation Research our with In education our schools and to and and kits to summary, are donation environment. cleaned products to included to testing of filter PUR water campaign and leading we These nationwide. consumer remain evolving and need navigate for a

retailers for including filed which bankruptcy, Since have reported customer is for X OXO. Store, meaningful earnings, Container a we launched large the

also income to between the see in reported higher continue widely lower bifurcation households. income We spending and

While driven continue items, purchasing while consumers discretionary is of is spending by income overall year-over-year, goods. higher higher-priced lower it consumers to necessities income prioritizing struggle, our holiday up

product are are and meet and messaging. to our go-to-market with portfolio execution We relevant consumers our where brand flexing they assortment

us factors are to our bearing Despite revitalize brands. discussed, reset to macro continue in just quarter the make we our a data and initiatives and fruit. on third some tells headwinds the journey mentioned, our we on I are progress we from investments As the

We the Troy stronger, maximize disciplined of that and to believe we is brands building our are more of PhotoLid. better a positioned Helen collaborative, potential data-driven

have which organization in the in Brian, Lastly, recognitions, most I give by important America, significant recognition none why before jump to America's the part a including for that to everyone workplaces population. to Newsweek want earned XXX at being I of recognizes XX of turn XXXX of third we well-being as for for it Helen associate over year thanks Troy ranking in X the companies Healthiest a people-first their of row, And responsible XXXX. prioritize in

Now over I will Brian. it turn to

Brian Grass

EPS results winter in sales net morning, good the that I'm and illness within everyone. range we to outlook and provided Noel, weaker-than-expected October season. pleased you, were report for Thank and despite adjusted

also in our as We gross margins profit operating for increased and even health. business our adjusted we continue invest long-term to

investment increased for During product innovation growth marketing basis the and quarter, XXX both approximately support year-over-year. points

EBITDA XX, a Noel terms our market mentioned, that the of After improvement acquisition. the see the June represents the for of brands. on borrowed our closing net of & on pay expected profit the of investment many margin, are cash $XXX.X amount of end of adjusted rate. beginning growth growth growth acquired. adjusted June margin, benefits We of EPS we to portfolio a quarter, accretive & EPS As announced million great initial is $XXX principal share gross in to December ongoing adjusted we to Olive to our addition our revenue key Olive revolver our and immediately of cash consideration the rate, million and

outstanding rate XX, an an XXXX, February floating we or of December our fixed XX% to of swapped average of borrowings, amount $XXX now of have through inclusive million aggregate these As XXXX. debt of of rate X.X%

X.X%. XX.X%. quarter, was expense in impacted our commodity all increased forma I'll and inventory X further Wellness, increased lower a Consolidated leverage my results. strength Home initiatives. brands Consolidated Beauty and remarks. by more discussion year-over-year to the move I Project by & Outdoor net of to by profit now in growth was illness favorable winter X.X% more sales The to decline which product third the than and quarter was weaker-than-expected points in obsolescence & unfavorably basis ratio driven Pegasus driven and during partly increase by international. pro detailed segment will margin due in was gross our at discuss season This in offset Our net costs time declined a XX primarily Sales on Xx a of closing. later which

compensation quarter XX.X% to period increase year. which XX.X%. by incentive obsolescence These inventory benefited of On incremental last earlier operating impact to of our factors or lower margin margin to the basis investment the by basis, unfavorable driven the El and expense, lower basis gain was a referred the same driven XX.X% for Paso the $XX.X were and points. of leverage. million by compared facility points partly primarily XX expense favorable GAAP Pegasus. growth in costs, approximately commodity partially sale basis year-over-year product I XXX on Project from an adjusted was annual of The increased offset points and XXX operating operating

declined partially freight, and to operating Home to On impact a partially lower lower annual XX.X%, favorable margin product unfavorable expense outbound investments. These obsolescence were Wellness and by operating basis by XXX increased expense costs. incentive year-over-year. lower XX%, incentive compensation for obsolescence and points and and margin commodity inventory offset product basis basis, commodity the These lower favorable XXX expense growth & growth lower primarily of compensation segment & inventory Beauty points Outdoor due costs investment annual were driven incremental offset operating factors to leverage. expense adjusted Adjusted by incremental year-over-year. factors

quarter Our to year. was XX.X% XX.X% tax the third rate compared last in

per of Net income sale share to $X.XX of of by on lower due expense and in partially legislation period operating interest impact million impact expense Non-GAAP rate, recognized and lower adjusted $X.XX tax the Barbados facility, or adjusted of tax income gain diluted El on quarter higher EPS Paso fiscal primarily a Home last first Beauty the adjusted & 'XX, & higher the the year. and lower offset tax offset the was $XX.X reflecting share. operating outstanding. same adjusted effective was higher Wellness was partially comparative by the per increase the year-over-year income The Outdoor, in enacted during shares

levels We $XX in transitioning higher to ended the we and of capture and second This for the of $XXX to demand illness potential impact build third the of weaker-than-expected out quarter sequential our China potential total a targeted strategy are quarter. term. to impacts near inventory a to defer to season tariff increase inventory million levels reflects production, compared the with debt of million, due

We held of customer the also sheet the of end the received on due more timing quarter. the cash balance at to payments

net ratio of leverage Our second line was roughly end with the X.XXx, in quarter. the

for 'XX. Turning outlook fiscal now our to

illness We for global an unfavorable and outlook changes sales, leverage that to acquisition. EBITDA, X ending reflect our free be well expectation revision There Olive our to wellness are ratio. cash the flow segment, consolidated will key the from historical include below net EPS, season outlook. incremental adjusted from are prior by updating contribution expectations . our adjusted averages sell our and June the net revenue & These

illness, terms of came impact an assuming average the flu fiscal year we season. the into In of cold, cough,

of Excluding through illness is December the low. anomaly COVID year X-year an to incidents XXXX, U.S. XXXX at

adversely million quarter be be $XX sales impact to $XX in the year. for million, approximately the historical are the unfavorable We net the fourth below third assuming million season to $XX quarter. This and now averages approximately well will by impacted estimate we our full

expect we While that we retailers to roughly meaningful incremental now through not place midway orders do illness as there season. could replenishment increase, is the incidents are a possibility

of XX from to adjusted June transaction $X.XX in incremental includes sales the the the & period of from the an $XX and fiscal million of Olive now closing in expected the range December $X.XX million outlook contribution of on end Our through EPS acquisition date 'XX. $XX for partial the to net range

$X billion which holiday X.X% a start-up sales time & distribution $X.XXX changes decline as facility year I due reflects in issues just quarter. Olive the of previously to implies now at shipping key in billion X.X% and We of of X from Tennessee million to integration and ERP million of discussed challenges slower the unfavorable June selling net the impact disruption approximately of the the our typical the and first disclosed automation the outlook approximately reflects the between impact cycle operating Curlsmith well expect as $X season. the $X.XXX after the

facility includes we and of $X.XX distribution Tennessee continues $X.XX & period In non-GAAP X.X% growth continues averages includes outlook of year. to a $X.XX EPS first now illness Olive well now to the decline as year-over-year quarter post-closing our include adjusted outdoor unfavorable & and partial an a to expect of of which We our $X.XX Beauty fourth our full approximately during X% outlicense the acquisition. decline of from our incremental million and which the terms expiration and revised EPS accretion historical June of net as well range to in for home Wellness to which Olive acquisition related relationship sales now $X.XX the of for the the a contribution for quarter. of June XX.X% expect & of disruption expectation shipping season X% to in GAAP from the estimated $X.XX, of below of to segment, X.X% to impact include by the headwind and and $X an at the

full expect range in now $X of estimated the includes $XXX million $X to year June adjusted million $XXX We million which an contribution EBITDA to & Olive of from acquisition. the million

basis margin XX of adjusted points XXX coming automation approximately Our from with at year-over-year distribution outlook implies EBITDA issues facility. points XXX start-up to the basis our compression approximately

translates now We a as sales. incremental points long-term basis for business to year-over-year percentage a product make XXX investment of we marketing to in innovation the growth of increase the XXX our of spending, to health investment dollar continue are preserving range and into which

decreases now on be borrowed expect for with Noel The Olive the acquisition. expect With we additional track interest includes in quarter restructuring which rate and million, cadence $XX to full by Federal expense our mentioned, targets year as and will swaps million recent interest charges respect savings interest & to Project the remain debt 'XX. completed and impact rate $XX third fiscal executed We of the made that June largely Pegasus, of Reserve. approximately in

We GAAP between year effective million We adjusted and of of to of asset expenditures million XX.X% rate and for $XX with million XX.X% includes fiscal $XX distribution facility. Tennessee for change a the effective $XX technology expect expect 'XX, and capital a remaining intangible tax to XX.X% of range million to now XX.X%. fiscal non-GAAP which our equipment $XX associated and

expect free million now year in weaker prior illness outlook. impact and to $XXX expectation. the cash changes is We to flow overall our $XXX our full from our revenue flow season million lower expected which key to previous reflects results unfavorably cash compared The

of to We advance build in included further to and ratio I in fiscal leverage the potential expect as in inventory net mentioned We outlook. earlier, be was end defined now by also not strategic as previous our tariffs, which credit 'XX. of our agreement, begun levels X.XXx between X.XXx

business are our our we for efforts fiscal and success in reset future. in up revitalize we've In progress ensuring 'XX to set seen closing, the while that in

the be with we'll that greater and of deployment. at debt fruit. our and As sheet the accretive functional, portfolio to June business. are to improving Olive to quickly end our for working accretive facility further pay look acquisition will unlock of will fundamentals while We 'XX. is realize Tennessee we investments and core fiscal significant capital forward work after growth initiatives We our scale beginning look balance capital the and and gains to an believe the we we We've that believe efficiency on completion for now improved to of enhanced wellness, of continue fully & many contributor the and to the beauty key expect bear we consider believe our optimize opportunities further distribution Automation to down efficiency, come. quarter, processes years to we which system

optimizing initiative focused base investments investment some now to is going productivity with diversify Our outside We are achieve generated and Pegasus horizon. maximum making the forward. progress our and our fuel to supplier more on opportunities on China with of returns significant

next Finally, drive Pegasus system we phase and intend on fuel, investment build of and impacts earnings potential offset momentum enhancements, productivity ongoing accretion. the initiatives to further the create with tariff of

I'll With that, turn the back it operator. to

Operator

first CJS from Instructions] [Operator with Our Securities. is Bob Labick question

Bob Labick

Yes.

benefits you with I kind of center. you remind Iron here. distribution of of that headwinds behind long So you O&J impact your Obviously, expect? What the in centers the all? And that to congrats with wanted you at Iron us does does start getting take? benefits Giant particular, acquisition how should How get? on the distribution Could kind if now and the Giant,

Noel Geoffroy

which in the of case And TNBC Home Outdoor than out and shipping Bob. know, Home project very -- for the full then & then full Overall, Tennessee in time, us. there. also build from I'll for major and investment or Giant been & to I'll we've ask been us and Brian Iron Thanks, in business start, some for for has you we've a case business center as well. Outdoor big the less both excited some time or myriad we're distribution that of ways, quite volume for well. a direct-to-consumer the a as about capability it provides

that distribution of piece end that the the up piece that last last automation kind was that facility. So was towards was of the of coming the

We had accomplish get that holiday that busy X, efforts struggled period, to able to quite in really get working team's really the we with this with we and particularly during pleased nicely. working, were quarter to

about we impact made at the assumed will as I that it June talked yet. that Olive acquisition, when when to we in how acquisition, and point, it think haven't & comes we this

been I direct-to-consumer business, that. assuming think over are time, pretty business. we but we probably will and direct-to-consumer can to bring substantial some their not currently They've productivity

we're that bit as look June assuming time. a We those and of for currently are & as over operate a they going kinds to stand-alone are opportunities then Olive

you would when be So do you get say I we Brian, that want point. will, to build? if upside that will to

Brian Grass

Investor I add remains challenges vision bit through. the laid in we what had the and it Giant by been Minor actually, to laid saying automation the It's delayed would materials. the same, the Yes, to just from get from had by Day a we similar is we benefit what that out benefit -- for the out

So to moves percentage the and percent the we of of over distribution a that of we to our efficiency in make Giant get Being those have rate X-plus called the distribution time. more as materials, we peak in a sales. mid-Xs, X.X%-ish in planned range cost of kind Iron as go [ is like the out other sales percentage vision a ] after we in that

a longer get on bit just we're think through that last track had. achieve still speed as we the So we taken bump little to benefit. had that It's we to

And Olive compare & you is less bit And what big cost currently I more thing. is see starting estimates a Noel pretty of we're it to to pursue of efficiency the meaningful little then doing of We'll incurring, careful June, pro so we have squeeze of our going which and into would opportunity forecasts, accretion, kind there of opportunity. just factored add out But forward. be forma some as there we upside or more some kind said, not partnership to think if our be any they're there. opportunity doing distribution that on a

Bob Labick

do an latest elaborate to happen about a for event they're they're macro relates stuff. on different and specific not you considerably you. mentioned This next how follow-up, thoughts how in when things could for all some may you what question not as briefly for how your that be that like know be planning. inventory, Okay. that? can that of may you or to Super. just there. tariffs a question, is guys give It's as But at you everyone. my to maybe you But like kind us it go be magnitude But plan touched then this don't on to And You or going going tariffs.

Noel Geoffroy

and Bob. it Yes. then Thanks, I'll to you think just start I over echo Brian, briefly turn but would what said. I

what broadly not I may stories going the right tariffs like now think there to what and whether magnitude changing the areas of tariffs effective or and that. would products be on are may be or be, -- tariffs what than only targeted the China on look more will the what that's changing

away. date And so the inauguration is literally

smart that clarity are in more going. is said, and Trump Brian where some levers, some of get that's kind we Brian? those we we touch believe and and are pursuing, diversification us, where we do office, President-elect of we'll is let think That for know once exactly he's I'll in I new on So what a

Brian Grass

Yes.

went we I to point. position ended we're make to think tariffs? not we categories. the without What in these there ourselves change be key sense do don't it make to come the and in that a with we made ask what So changes particular the is try well that regret even question transitions or tariffs of where is does

the broader that out that's make is our to of a is really to concept north of our don't kind using outside theme our China, star in in does a concentrated. not sense come looking we're That's China where So transition it's if diversification we're of making at be? choices. asking And it make so ourselves a every case being question mind, of, tariffs even which

will to deemed that algorithm totally national of probably sectors think where sense to difficult solve critical focused to or which certain going. we're when that items, a just are the exclude that. either on makes be may pursuing it's security, that lot have it reports you diversification contrary a of don't So is level reports way. but it We there more Recent economic said categories. our know are

Operator

Grom question Peter Our UBS. with is from next

Peter Grom

some And Happy the get fourth with just perspective perspective. well. drivers months Good range the call on Thanks, here. line it, like operator. underlying everyone. of you're X seems a to hope pretty wide New to go start just to a I from It love kind quarter. top of kind doing Year, guess want and morning, I'd I for on Two I me.

would maybe it So the underlying to walk just doesn't more? through a a lot bit $XX that sound like for What million assumptions high million you you versus us headwind there's chain. the the elements I of guess room put lower end? And can $XX lower at really to from end

variables key watching the months So be the next just curious should are? over of couple we of what kind

Noel Geoffroy

X & utensils those on We're I along progress in saw in Year. continued on strong look categories, growth food nice across in quarter the some key Flask, & and kitchen I'm Happy seeing with improvement growth I pleased and third brands. making be dry Home regions fourth X lines see I seeing We in would continues share Osprey -- OXO its quarter for say seeing and We're to everyday improvement continued Peter, what that -- and there. continued is so the on in. Outdoor. see the we're storage. to New we're growth in Thanks joining also we travel progress to What strength all share extended Outdoor. all in Home sequential its Hydro packs, lifestyle and

it, illness On the Wellness wellness our side, touched Beauty is you on impacting business. that really low very & we're the seeing global

and the have on and both that year maintaining strong exception strong But in of positions. EMEA positions, Vicks just [indiscernible] that the X-year are very low brand do kind Thermometers categories low Braun coved and based seasons are share, down gaining then We Vicks of and with APAC. similarly way and

in in that's fourth biggest for And the quarter outlook there. the so change our driver really the

We have softer baked in beauty. on performance

say in in I we third we the would what with what forecasted. quarter And line saw

And forecasted to the is Brian, so you'd season. our of anything real on beauty. like like feel driver the we The here illness I business where add? change is

Brian Grass

might the were than that I No, part retailers ours that variability variable, environment better, there's continues be are explanation kind doing there's later is just as highly the and would of not doing the are be and little and to consumer that the say as that customers pretty why you a to customers with other bit And range of the well. expecting. of

Peter Grom

Makes sense.

expect I mean, and you point this guess could time? growth what revitalize of see algorithm? do still I'm you and really Day, if this in do I Investor rates here, are looking revitalized. at -- just just the And to reset outlined where the of then when at I year outlined so, kind And that and we are guess we Okay. And in ahead think has going or targets this kind trying that targets those But achievable process? And that? to targets think just to more back that's as those those been of out of get kind lot at pieces, below is, we should below we of we a long-term and year? do anticipate fiscal it's can moving in next of approach year look Or 'XX continued that reset kind being kind color of know we'll you get April. I plausible growth another

just about But be we of as should as we sit here 'XX? anything to today relates thinking it kind

Noel Geoffroy

that out have now stand. what targets right the say is we there I Yes. Peter, would long-term

them. We haven't revised

ended the question, process be for outlook right budgeting in of we'll we're midst also you as late 'XX Now April. your our sharing our when now fiscal

will more be that provide able a So seeing color 'XX. fiscal in the that to lot on be think moment we're I we'll

like direction. & continue, in I feel think is International right as is Outdoor I I direction. I the the moving Home moving said, just in right

the got beauty harder has to lot a whether to we've but will. if work subject season think events swing or brands it's -- more do. then that stability, I other wellness business, the for illness of you can predict, other or underlying our are to that seasonal control us are And

be shoots is where improvement and those lot progress. We've And we're solid is still say, solid, less performance and on on for we got really is, over better, making work would growth I have some Revlon that's $XXX the than progress. but mass hair where green a $XXX the appliances, room in could think of some appliances I a

we Overall. how numerically we seeing the late and more perspective I shaping in see up April. we as think come we portfolio where sort how longer of that's are And term give I'm that on So can the journey. you and in

would you anything Brian, add?

Brian Grass

No, perfectly said.

Operator

Parikh Company. next Our with is Oppenheimer Rupesh & question from

Rupesh Parikh

some going of gains distribution the OXO, et just Flask, to seeing, So cetera. you're back Hydro

new that the of the you're velocities get want sense winning? how a Just to are distribution performing at

Noel Geoffroy

hear voice. Rupesh, to Year. Great Happy New your

Clearly, maybe gotten Home who volume penetration, category and really gains, share some the are we've into longer. little our market a it's distribution Kitchen distribution as Flask household kind because distribution OXO bit games, kind gain & they're a significant of major our So talk OXO utensils, has that And point potential expand to X know, a are. bit distribution and of with different Hydro at retailers we significant. in in Walmart of are examples Outdoor, in our represent been to where velocity, and you that

we've more inform So double-digit OXO simply made can perspective what penetration see And move. that got we us is for that expansion household there. more data and

brand of is tells footprint kitchen that it because meaningfully of is us Walmart So the that the share expanding significant. utensil the pretty

distribution being of broader much consumers a So Walmart. by we're reaching audience in at

performance see of market categories. of expanded -- The is kind Walmart. OXO velocity brand opportunities overall since And more has earning into share growth expand strong been there. that to We quite gaining strong other we've all the into

remarks, of got in Pop As mentioned gone my part the into a home I et top organization have Walmart. test We've containers going, cetera.

distribution. what exactly want we to when is see that of all So think expanding I about

the category at customers. that little they we side, in category, bit about women, it's is know is insulated tell is Target think lot those cetera, from on and the into to doing there. On shop in Gen consumers, Z we're a how say the growing a we category would do Because What customers -- Hydro Flask I like beverage et more as Costco. evolving too enthusiasts what early sports

there, of sports kind category growing in so or where it's historic know channel. outdoor And to the and we flat is as declining the

So our Hydro OXO, the it's is category similar to distribution be right place the can for initial. to target the because brand Flask for where that's very

placement. have off-shelf We some

We expect placement. to get broader

sporting it's you In if of home kind in fact, now, the shipping goods. and will,

So is have a more I lot we down a more the a once doing. we would see have takes Costco, perspective months velocity I think we'll hold bit say on the that data. little few what and line

show Costco strong quarter last we did for initially initial this mentioned program pack that the I the ordered what velocity we that double Costco. think beyond in a replenishment such I had forecasted that

performance how I of the the that's kind characterize would of So distribution.

Rupesh Parikh

into on just Olive And presumably? June one Is there this gave benefits to year benefits QX, & what acquisition. the I the guess, related to question help the QX you year. accretion, for carrier is Brian, for Great. next my accretion way quantify us a follow-up are QX, and the

Brian Grass

accretion gave the idea you on not from guidance, which get what in Yes. yet, think somewhat can specific I an QX. based you Without of providing doing we're we

days transaction closed we you'd that holiday their all the our softer in think that's period and of closing to partial have on it's prior to I about any the sales results. season. the selling also really fact the benefit holiday a in cycle of XX, post for period selling XX Those occurred The operating get account didn't that date.

other to The you'd growing is have I they're thing factor quickly. in think

some factor in So throughout ETS if you're year. growth next have to level you focused ] of on fiscal EPS secretion [

to get before would we adjusted I EBITDA how your So in arms I'll and we and synergies. call then of distribution implied areas. EPS, of to our synergies to it. announcement, is any north that's margin And XX% of as with level there's other as kind accretion likely try talked respect around with And the about, respect

that's positive. we XX%, so is between XX% and which profit And And really gross their margin like.

that's how next which year, accretion about I prepared think specific for would we're kind of without do. to So getting into guidance not

Operator

James. Raymond with Tong Olivia from is question next Our

Olivia Tong Cheang

Year. Great. New Happy

Just clarification. few a first, points of

talked consumer, last and cycle a that trends mid encouraging quite home, headwind quarter high about between bifurcation return continues replacement In that shelf be terms your it rocks. low view? of the to then secondly, versus to to the few space gains in is seemed worsening a point that Or is end your end in you

weaker you next push a in even continue [ sort cough, your bankruptcy, XX Or out about months? sales net a opportunity there these innovation be shelf So of rebuild businesses, view over of fiscal of hydrolase to do as positive like we as well. think is things an as for that. cold, couple store things the ] the the container inflection today further 'XX? like to touching some these

Noel Geoffroy

consumer mean, look really in I macro thanks Olivia, you a -- it's as confidence sustained consumer things wasn't continuation, there although would that December. from there, rebound would I the are data macro largely a at shifting I was in standpoint, some for say say of always joining. a out

the dropped bit in and As down the kind income outlook numbers. middle labor index a business the index quite that of of the range, went short-term kind to back consumer for the expectations of

definitely there's I So data out that some there cautious. consumer is still think concerned

lower most reported particularly what I mentioned, as I is is and see income from consumer that. it's we bit that consumer pressure what that's most, being think that of widely a is the business income And insulated middle higher the think to that's in our

although December. that more of the roughly question, we've was reports worse So consumer's trending recent the a second bit where And seeing, around of and those indicate some December think, positives the as of some prior than same your to the would some then been in mindset what maybe were then little headwinds. we I was

about I think and gains, we're -- distribution the yes, I a in with I for couple a particular, Hydro from retailers positive category and do talked Flask some important where meaningful perspective. of tailwinds see placement them us in gaining with OXO

One not a of developed, that quite the in the where a is key shopper you're retailer with if the shops, win category strategies that's gap. is we have be and

the North that's about meaningful. in of been for are today us ones gaps we've real some the RMO talked so focus to close and American a And those

so I promotions, retailers that's see assortment, that responsibility continue and boost once real the tailwind. those velocities that our a continue bring perform right the positive we to the kind think to to in right will programming So forward. of be continue a we're the It's right to

the anything at why each X-year then to really about and year I think kind that. we we year, next it. season. we happens And assume start susceptible wellness of that part typically businesses wouldn't low to think it every as That's an year, be fiscal year-on-year average we an of of as don't see kind kind year varies into how so again go that it we as does this it's the I an assume fiscal when season, portfolio, other do things the it than comes difficult illness average of are season to of do the to have we and those flow beginning

And then do. more on Beauty, work to we have

enthusiastic to beginning digging new improvement. business on talked this last appliances we're I said, did higher-end about We a changed the Drybar I wellness really that across got some I coming about. portfolio. leader is the We've and at As that places the leadership in unit in quarter. and we're few see beauty where make new innovation

I So some performance, work happen coming doesn't but I anticipate should improve overnight. see happening that and some the things it

Operator

from Canaccord Susan Genuity. Anderson is question next Our with

Susan Anderson

on I segment the guess on just maybe follow-up a Beauty liquids. the

You Drybar Curlsmith. and some flow And is mentioned guess maybe across there. Drybar both in that space with that think got then through more guess performing? Did -- quarter? retailers. how you I strength in was I And I that the

Olivia Tong Cheang

segment to good, for be thanks to performer. liquids, texture a is hair Curlsmith joining well. on I brand It and in hair do strong, a to say the continues would us. leading Susan, steady continues

remarks, a season that for my based As strong product some incremental into did into I retention the has Curlsmith that mentioned on well we consumer leading really holiday us. didn't with investment that efficacy. lean in brand It's

Our education. consumer really strong

bit a of Speaking a from here journey. personal experience, currently is

it's brands really how it's Curlsmith show so the when And and products use and styles how achieve to like strength consumers to of helpful Curlsmith.

money see behind And more so the as put we we we brand, see positively. respond it

to So I feel like Curlsmith continues perform well.

say, would pockets I've we've Big strong got Drybar I that. liquids, Brew. mentioned performance Drybar, On of

to broadening the relatively up quarter I collection Drybar us, think portfolio the perform doing has Drybar after that. I up is I well of focuses say on collection That well. and That's a also is new mentioned that significantly that continued very us. liquid glass performing on for would well last thickening. for

I've tools. liquids position synergy out certain we talked tools about and of more of that whole for Unlike well. the as subsegments is doing the are news something on, to I there portfolio think, bring think to work especially Drybar that that rise before, continues I and are kind between a team liquids, So within unique pockets Drybar the this on

play Drybar kind regimen double where shine. think I that is of can really

Susan Anderson

And just the in was on follow-up quarter. like looks it Great. question then one up It Okay. inventory.

just drivers Do good pretty the guys that curious Just retail? any there's retail And you Or inventory like inventory well. you are as at are areas feel over-inventoried? feeling there. then at about

Noel Geoffroy

and I'll want. I touch touch our can on Brian, on retailer inventory, then you you let inventory, if

Brian Grass

factors a and kind we of decision point thought had -- of opportunities, expecting demand that. is made One driving some it's to we the inventory and is one at higher Yes, to in are Sure. we of in, where had lean those this than where our higher, areas kind we is built were in year in X a most primary we thermometry that year. the retailer there expect from up it order this variety strategic the with of that end to through the carry point likely market And remainder done is going with higher reasons serve and cold, inventory flu a the inventory at we're perspective. largely cough, of I year replenishment season the in weaker would season. for because to

So that's factor. one

of in The to more those sight transition could other out time factor China managing use we is in supplier conjunction tariff of have our make cases with but strategy, a transitions. line where

we We a impact make have us to time acquisition is more execute impact the can the that or and did supplier make made. of the begun inventory and more build levels buys minimize the before the the transitions decision transition potential which so before

levels season cough/cold/flu of So close as from the previous on our the change well we impact inventory as did we is -- a that year. outlook as

So I would call those respect drivers primary to the with X inventory.

Noel Geoffroy

is And then, on from due on talked inventory some standpoint, on about would say that surprising Wellness retailer a to probably Susan, based the the where inventory we've retailer side, see build illness retailer season. we I not weak weakness. what

of I think, of as lot got that, a hand. illness inventory if in So remarks, the next said, his accelerates on season couple Brian the prepared in months, even they've

of We we inventory, also said. have just plenty

the say, if would point, started their I to service replenish, it are But high site So at it. inventory retailers we ready to wellness really side. this levels and on are

of in to of just-in-time do these pressured talked of I to kind continue I strategies. consumer, sort about use to parts other they think the some of earlier, inventory our continue retailers replenishment business, as react

from place that see inventory that. that sometimes the the category shifts on illness probably has happen So But based to well we'll highest as right now some our the as season. standpoint

Operator

would questions to conference back in I closing management no turn like to over With further the for remarks. queue, the

Noel Geoffroy

this ICR Helen Troy. at next week you, in as week and Thank a for us We conference. for everyone, as with day. you speaking joining look Conference virtual great well and the your CJS forward in have of really interest Thanks, today to everyone, of the many continued

Operator

conference. will Thank you. This today's conclude

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

Helen of Troy Limited (HELE) 8 Jan 252025 Q3 Earnings call transcript