Helen of Troy posts sharp fall in quarterly sales and profits
Third quarter sales were down 11.8 percent to $185m and net earnings fell to $15m from $22.8m in the corresponding quarter last year.
In the personal care segment, the hair care specialist endured a 13.9 percent fall in turnover to $140.3m, while sales of household goods decreased 4.3 percent to $45.3m.
Quarter drags down figure for year to date
The decline in the latest quarter dragged down the sales figures for the nine months ending November 30, which fell 4.8 percent to $484.2m.
Helen of Troy said the strengthening of the dollar against other currencies in which it sells was partly to blame for the sharp dip in reported sales in the third quarter.
The company said foreign exchange losses reduced year-over-year quarterly earnings by $5.0m.
The impact of declining consumer confidence
Commenting on the results, Helen of Troy CEO Gerald J. Rubin also said a compressed consumer holiday shopping season and declining consumer confidence had adversely affected sales.
Rubin said: “We believe that recent credit market instability, extraordinary stock market volatility, increases in unemployment rates and the uncertainty regarding the impact and extent of U.S. government intervention on behalf of the financial services and automotive sectors has fueled consumer uncertainty.”
Going forward, Helen of Troy said it expects the retail situation to continue to be challenging. The company plans to adapt to the fast-changing environment by controlling expenses and prudently pursuing growth opportunities.
Rubin said: “During this difficult period we believe we are well positioned financially to continue to seek prudent opportunities to grow our business.”
