Helen of Troy Q3
This article was originally published in The Rose Sheet
Executive Summary
Sales for company's personal-care unit decreased 6.2% to $162.99 mil. in the fiscal 2008 third quarter and slipped 0.4% to $388.3 mil. over the nine months ended Nov. 30, 2007, compared with the prior-year periods. "Our Personal Care segment is facing a challenging sales environment, which we anticipate will continue through at least the first half of this calendar year," CEO Gerald J. Rubin says, adding: "We are in the process of shifting the Belson sourcing to our current suppliers, which we expect to provide margin improvement opportunities sometime in fiscal year 2009." Helen of Troy acquired Belson Products in spring 2007; it was formerly the professional salon division of Applica Consumer Products ("The Rose Sheet" May 14, 2007, In Brief). Company also aims to expand sales and distribution of its Bed Head by TIGI line and to "reevaluate [its] Personal Care segment's domestic product line mix, and its selling, branding and production forecasting operations," according to Jan. 9 release. Like it did last quarter, firm is revising its full-year guidance, projecting sales in the range of $645 mil. to $655 mil. versus $660 to $680, and earnings of $1.85 to $1.95 per fully diluted share versus $1.90 to $2.10 ("The Rose Sheet" Oct. 22, 2007, p. 8). Earnings for Q3 and the nine-month period were $22.84 mil., or $0.73 per fully diluted share, and $51.21 mil., or $1.60 per diluted share, respectively...