Sales Boost Rockets Helen of Troy Bottom Line in Q1

EL PASO, Texas-A monumental 70 percent increase in net sales firmed Helen of Troy's net income by 34 percent in its fiscal first quarter, to a record $24.6 million. That pickup brought the personal-care giant's net sales to $271.5 million. In its statement reviewing the quarter, Helen of Troy said the sales jump occurred primarily because of its acquisition of Kaz, the vendor of health-care and home-environment products, which closed on Dec. 31.

The acquisition brought an additional $95.8 million to the company's top line in the quarter. Meanwhile, sales in Helen of Troy's housewares segment increased 10.5 percent, while sales in its personal-care sector rose 9.3 percent.

The sales gain also trumped a 470 basis-point drop in the company's gross margin, which finished the quarter at 40.5 percent. And while selling, general and administrative expenses rose 61 percent, they decreased 150 basis points as a percentage of sales to 29.2 percent.

Gerald Rubin, chairman, president and CEO of Helen of Troy, said all of the company's operating segments executed well in the quarter. Rubin said the company is on course with its strategic plan for this fiscal year, key elements of which include continued investment in new-product development, especially in the Oxo line; initiatives to partially offset expected increases in commodity and in-bound transportation costs; productivity initiatives to reduce operating expenses; and pursuit of more acquisitions of complementary businesses and product lines.

"As a leader in our product categories to our retail partners, we believe we are well positioned to achieve record net sales revenue and record net income for Helen of Troy in fiscal 2012," Rubin said.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover


    August 2017

    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.