Helen Of Troy Profit Falls - Update

(RTTNews) - Consumer products company Helen of Troy Ltd (HELE) Thursday reported lower second-quarter earnings, hurt by higher selling and general expenses that offset a marginal rise in sales. The company reaffirmed its guidance for the full year.

Shares of the company gained about 3 percent in after-hours trade on the Nasdaq following the announcement.

Helen of Troy, based in El Paso, Texas, posted quarterly net earnings of $18.8 million or $0.65 per share, compared with $23.3 million or $0.72 per share last year.

Excluding items, adjusted earnings for the quarter were $0.99 per share, compared with $0.97 per share a year ago.

On average, three analysts polled by Thomson Reuters estimated earnings of $0.65 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the second quarter were $319.9 million compared with $319.4 million in the prior year. Analysts expected revenues of about $313 million.

The company benefited from nutritional supplements segment that contributed sales of $24.6 million, as a result of the acquisition of Healthy Directions in June.

Sales at other businesses were weak. The company's houseware sales edged down 0.8 percent from a year ago, healthcare/ home environment sales slid 5.1 percent, and personal care products sales fell 14.4 percent.

Gross margin for the quarter improved to 41.8 percent from 38.6 percent a year ago, due to two months of operations of the nutritional supplements segment, which had a favorable impact of 2.6 percentage points on the consolidated margin.

Profit was hurt by selling and general expenses that climbed to 109 million from $93 million last year.

Looking ahead to the full year, the company continues to expect adjusted earnings of $4.87 to $5.01 per share and sales of $1.38 billion to $1.41 billion, including the results of Healthy Directions LLC. Analysts currently expect earnings of $3.93 per share on sales of $1.39 billion.

In June, the company acquired Healthy Directions, which is engaged in the premium doctor-branded vitamin, mineral and supplement market, for $195.9 million.

HELE closed Thursday at $53.42, down $0.59 or 1.09%, on a volume of 294k shares on the Nasdaq. In after hours, the stock gained $1.58 or 2.96%.