Helen of Troy Limited reported its third quarter fiscal 2025 results for the period ended November 30, 2024, on January 8, 2025. The company announced consolidated net sales revenue of $530.7 million, a 3.4% decrease year-over-year, which was below analyst consensus estimates. GAAP diluted EPS was $2.17, while adjusted diluted EPS reached $2.67, exceeding consensus expectations.
The Home & Outdoor segment demonstrated strength with net sales increasing by 4.3% to $246.1 million, driven by gains in retailer distribution and international sales. In contrast, the Beauty & Wellness segment experienced a 9.3% decline in net sales to $284.6 million, primarily due to a weak winter and illness season, increased competition in hair appliances, and a decrease in water filtration sales. Despite the sales decline, the company achieved gross profit margin expansion of 90 basis points to 48.9% and adjusted operating margin expansion of 30 basis points to 16.6%.
Helen of Troy updated its fiscal 2025 annual outlook to incorporate the Olive & June acquisition, which was completed on December 16, 2024. The company now expects consolidated net sales revenue in the range of $1.888 billion to $1.913 billion, a narrower range reflecting a decline of 5.8% to 4.6%. Adjusted diluted EPS guidance was narrowed to $7.15 to $7.40, including an expected accretion of $0.05 to $0.07 from Olive & June in Q4 FY25. However, free cash flow expectations were lowered to $145 million to $155 million, and the net leverage ratio is now projected to be between 2.85X and 2.75X by the end of fiscal 2025, an increase from previous targets.
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