HELE
$139.63
Helen of Troy
$2.68
1.96%
Earnings Details
2nd Quarter August 2018
Tuesday, October 9, 2018 6:45:00 AM
Tweet Share Watch
Summary

Helen of Troy Raises Guidance

Helen of Troy (HELE) reported 2nd Quarter August 2018 earnings of $1.82 per share on revenue of $393.5 million. The consensus earnings estimate was $1.51 per share on revenue of $350.8 million. Revenue grew 4.0% on a year-over-year basis.

The company said it expects fiscal 2019 non-GAAP earnings of $7.65 to $7.90 per share on revenue of $1.535 billion to $1.56 billion. The company's previous guidance was earnings of $7.45 to $7.70 per share on revenue of $1.485 billion to $1.510 billion and the current consensus earnings estimate is $7.64 per share on revenue of $1.52 billion for the year ending February 28, 2019.

Helen of Troy, Ltd., is a designer, developer, importer, marketer and distributor of an expanding portfolio of brand-name consumer products. It has three segments; Personal Care, Housewares and Healthcare/Home Environment.

Results
Reported Earnings
$1.82
Earnings Whisper
-
Consensus Estimate
$1.51
Reported Revenue
$393.5 Mil
Revenue Estimate
$350.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Helen of Troy Limited Reports Second Quarter Fiscal 2019 Results

• Consolidated Net Sales Revenue Growth of 14.1%; Core Business Growth of 14.2%
GAAP Diluted Earnings Per Share (EPS) from Continuing Operations of $1.66
Adjusted Diluted EPS from Continuing Operations of $1.98
Increases Fiscal 2019 Diluted EPS from Continuing Operations Outlook to $6.31 - $6.46
Increases Fiscal 2019 Adjusted Diluted EPS from Continuing Operations Outlook to $7.65 - $7.90
Increases Fiscal 2019 Consolidated Net Sales Outlook to $1.535 - $1.560 billion

EL PASO, Texas--(BUSINESS WIRE)-- Helen of Troy Limited (NASDAQ:HELE), designer, developer and worldwide marketer of consumer brand-name housewares, health and home and beauty products, today reported results for the three-month period ended August 31, 2018. Following the divestiture of Healthy Directions on December 20, 2017, the Company no longer consolidates the Nutritional Supplements segment’s operating results. That former segment’s operating results are included in the Company’s financial statements and classified as discontinued operations for all periods presented.

Executive Summary – Second Quarter of Fiscal 2019

  • Consolidated net sales revenue increase of 14.1%, including:

    • An increase in Leadership Brand net sales of approximately 20.5%
    • An increase in online channel net sales of approximately 16.1%
    • Core business growth of 14.2%
  • GAAP operating income of $50.7 million, or 12.9% of net sales, which includes $0.9 million in restructuring charges, compared to $39.7 million, or 11.5% of net sales for the same period last year, which included a $3.6 million charge related to the bankruptcy of Toys "R" Us ("TRU")
  • Non-GAAP adjusted operating income growth of 16.7% to $59.6 million, or 15.1% of net sales, compared to $51.1 million, or 14.8% of net sales, for the same period last year
  • GAAP diluted EPS from continuing operations of $1.66, which includes $0.03 per share of restructuring charges, compared to $1.26 for the same period last year, which included a $0.12 per share charge related to the TRU bankruptcy
  • Non-GAAP adjusted diluted EPS from continuing operations growth of 20.0% to $1.98, compared to $1.65 for the same period last year

Julien R. Mininberg, Chief Executive Officer, stated: “Our business generated excellent results in the second quarter as we continued to benefit from the strategic choices we made as part of our transformation plan. These choices included disciplined investments in our Leadership Brands, our infrastructure and our people, which contributed to a net sales increase of 14.1% and an increase in adjusted diluted EPS from continuing operations of 20.0%. Net sales for our Leadership Brands grew 20.5%, and our online sales increased 16% to represent 15% of total net sales in the quarter. We experienced strong point of sales trends as well as healthy customer replenishment in the majority of our businesses. We also improved our consolidated adjusted operating margin as we benefited from more sales of our higher-margin Leadership Brands, better operating leverage and further efficiencies from our shared services platform. Our second quarter performance caps a strong first half with net sales growth of 11.6%, Leadership Brands net sales growth of 17.7%, and adjusted EPS growth of 25.8%.”

Mr. Mininberg continued: “Based on the strength of the first half of the fiscal year, we are pleased to be increasing our full year outlook. While the second half of the year is not without its challenges, including the impact of expected commodity and freight inflation, and the adverse impact of tariffs, we believe we have the right plans in place to help mitigate the majority of these factors and further increase our marketing investment behind our Leadership Brands in the remainder of the fiscal year.”

Mr. Mininberg concluded: “Our multi-year results reflect our organization's disciplined execution of Helen of Troy's transformation plan. An important element of that plan is ownership behavior. Our 1,500 associates around the world feel and act like passionate owners. As we honor their contributions that made Helen of Troy the company it is today, and reinforce their role in our future, we recently awarded associates at all levels and all locations 50 Helen of Troy stock units. This is a fitting number as we proudly celebrate our 50th Anniversary. We are confident this award will make our associates even more deeply connected to the company, and to each other, and to continue to think and act in the best interests of our shareholders.”

   
Three Months Ended August 31,
Housewares       Health & Home       Beauty       Total
Fiscal 2018 sales revenue, net $ 115,124 $ 146,063 $ 83,762 $ 344,949
Core business growth (decline) 22,340 29,588 (3,076 ) 48,852
Impact of foreign currency 34   132   (419 ) (253 )
Change in sales revenue, net 22,374   29,720   (3,495 ) 48,599  
Fiscal 2019 sales revenue, net $ 137,498   $ 175,783   $ 80,267   $ 393,548  
 
Total net sales revenue growth (decline) 19.4 % 20.3 % (4.2 )% 14.1 %
Core business growth (decline) 19.4 % 20.3 % (3.7 )% 14.2 %
Impact of foreign currency

%

0.1 % (0.5 )% (0.1 )%
 
Operating margin (GAAP)
Fiscal 2019 20.6 % 7.8 % 10.8 % 12.9 %
Fiscal 2018 20.3 % 5.1 % 10.7 % 11.5 %
Adjusted operating margin (non-GAAP)
Fiscal 2019 22.4 % 10.5 % 12.8 % 15.1 %
Fiscal 2018 22.4 % 9.6 % 13.6 % 14.8 %
 

Consolidated Operating Results - Second Quarter Fiscal 2019 Compared to Second Quarter Fiscal 2018

  • Consolidated net sales revenue increased 14.1% to $393.5 million compared to $344.9 million, primarily due to an increase in brick and mortar sales in our Housewares and Health & Home segments, growth in online sales and growth in international sales. Net sales from our Leadership Brands increased 20.5% to $319.0 million, compared to $264.9 million. These factors were partially offset by lower brick and mortar sales and the rationalization of certain brands and products in our Beauty segment and the unfavorable impact from foreign currency fluctuations of approximately $0.3 million, or 0.1%. The Company reclassified $2.3 million of expense from selling, general and administrative expense ("SG&A") to a reduction of net sales revenue for the second quarter of fiscal 2018 to conform with ASU 2014-09 “Revenue from Contracts with Customers”. Please refer to Note 8 of the accompanying schedules to the press release for additional information.
  • Consolidated gross profit margin decreased 2.2 percentage points to 39.4%, compared to 41.6%. The decrease in consolidated gross profit margin is primarily due to less favorable product and channel mix and a higher mix of shipments made on a direct import basis, partially offset by margin lift from growth in our Leadership Brands.
  • Consolidated SG&A as a percentage of sales decreased by 3.8 percentage points to 26.3% of net sales compared to 30.1%. The decrease is primarily due to the favorable comparative impact of a $3.6 million charge related to the bankruptcy of TRU for the same period last year, improved distribution and logistics efficiency, the favorable impact of a higher mix of shipments made on a direct import basis, lower amortization expense and the impact that higher overall net sales had on operating leverage. These factors were partially offset by higher share-based compensation expense related to long-term incentive plans.
  • Consolidated operating income was $50.7 million, or 12.9% of net sales, compared to $39.7 million, or 11.5% of net sales. Operating income for the second quarter of fiscal 2019 includes pre-tax restructuring charges of $0.9 million, compared to a $3.6 million charge related to the TRU bankruptcy for the same period last year. The effect of these items favorably impacted the year-over-year comparison of operating margin by 0.8 percentage points. The remaining improvement in consolidated operating margin primarily reflects improved distribution and logistics efficiency, lower amortization expense, the favorable impact of increased operating leverage from net sales growth and the favorable margin impact from Leadership Brand growth. These factors were partially offset by a less favorable channel and product mix and higher share-based compensation expense related to long-term incentive plans.
  • The effective tax rate was 8.3%, compared to an effective tax rate of 4.1% for the same period last year, which included a $2.2 million benefit related to the favorable resolution of an uncertain tax position.
  • Income from continuing operations was $44.0 million, or $1.66 per diluted share on 26.6 million weighted average shares outstanding, compared to $34.6 million, or $1.26 per diluted share on 27.4 million weighted average diluted shares outstanding. Income from continuing operations for the second quarter of fiscal 2019 includes after-tax restructuring charges of $0.8 million, or $0.03 per share. This compares to after-tax charges related to the TRU bankruptcy of $3.4 million, or $0.12 per share, in the second quarter of fiscal 2018.
  • There was no income or loss from discontinued operations for the second quarter of fiscal 2019. Loss from discontinued operations was $25.6 million or $0.94 per share, for the second quarter of fiscal 2018.
  • Adjusted EBITDA (EBITDA excluding restructuring charges, TRU bankruptcy charge, non-cash asset impairment charges, and non-cash share-based compensation, as applicable) increased 15.9% to $63.6 million compared to $54.9 million.

On an adjusted basis for the second quarters of fiscal 2019 and 2018, excluding restructuring charges, TRU bankruptcy charge, non-cash asset impairment charges, non-cash share-based compensation, and non-cash amortization of intangible assets, as applicable:

  • Adjusted operating income increased $8.5 million, or 16.7%, to $59.6 million, or 15.1% of net sales, compared to $51.1 million, or 14.8% of net sales. The 0.3 percentage point increase in adjusted operating margin primarily reflects improved distribution and logistics efficiency, the favorable impact of increased operating leverage from net sales growth and the favorable margin impact from Leadership Brand growth. These factors were partially offset by a less favorable channel and product mix.
  • Adjusted income from continuing operations increased $7.3 million, or 16.2%, to $52.5 million, or $1.98 per diluted share, compared to $45.2 million, or $1.65 per diluted share. The 20.0% increase in adjusted diluted EPS from continuing operations was primarily due to the impact of higher adjusted operating income in our Health & Home and Housewares business segments, lower interest expense and lower weighted average diluted shares outstanding compared to the same period last year.

Segment Operating Results - Second Quarter Fiscal 2019 Compared to Second Quarter Fiscal 2018

Housewares net sales increased by 19.4% primarily due to point of sale growth with existing domestic customers, higher sales in the club channel, an increase in online sales, new product introductions and an increase in certain customer inventory levels compared to the prior year. These factors were partially offset by lower international sales. GAAP operating margin was 20.6% compared to 20.3%. The 0.3 percentage point increase in operating margin was primarily due to the favorable comparative impact of a $1.0 million charge related to the bankruptcy of TRU for the same period last year, a higher mix of Hydro Flask sales, improved distribution and logistics efficiency and the favorable impact of increased operating leverage from net sales growth. These factors were partially offset by less favorable channel mix, higher personnel costs and higher share-based compensation expense related to long-term incentive plans. Segment adjusted operating income increased 19.7% to $30.8 million, or 22.4% of segment net sales, compared to $25.8 million, or 22.4% of segment net sales.

Health & Home net sales increased 20.3% primarily due to higher sales of seasonal products, online growth, incremental distribution and shelf space gains with existing customers, and growth in international sales. These factors were partially offset by the unfavorable comparative impact from the retail fill-in of a new product introduction for the same period last year. GAAP operating margin was 7.8% compared to 5.1%. The increase in operating margin was primarily due to the favorable comparative impact of a $2.6 million charge related to the bankruptcy of TRU for the same period last year, the favorable impact of increased operating leverage from net sales growth and improved distribution and logistics efficiency. These factors were partially offset by the margin impact from a less favorable product mix and higher share-based compensation expense related to long-term incentive plans. Segment adjusted operating income increased 32.3% to $18.5 million, or 10.5% of segment net sales, compared to $14.0 million, or 9.6% of segment net sales.

Beauty net sales decreased 4.2% primarily driven by a decline in brick and mortar sales and rationalization of certain brands and products. These factors more than offset growth in the online channel. Segment net sales were unfavorably impacted by net foreign currency fluctuations of approximately $0.4 million, or 0.5%. GAAP operating margin was 10.8% compared to 10.7%. The increase in segment operating margin is primarily due to lower media advertising expense, lower amortization, and cost savings from the Company's restructuring plan (Project Refuel). These factors were partially offset by pre-tax restructuring charges of $0.9 million, a less favorable product mix and the unfavorable impact of decreased operating leverage from the decline in net sales. Segment adjusted operating income decreased 9.5% to $10.3 million, or 12.8% of segment net sales, compared to $11.4 million, or 13.6% of segment net sales.

Balance Sheet and Cash Flow Highlights - Second Quarter Fiscal 2019 Compared to Second Quarter Fiscal 2018

  • Cash and cash equivalents totaled $19.9 million, compared to $14.1 million
  • Total short- and long-term debt was $301.1 million, compared to $444.3 million, a net decrease of $143.2 million
  • Accounts receivable turnover was 65.4 days, compared to 61.8 days
  • Inventory was $284.8 million, compared to $318.7 million, a net decrease of 10.6%. Inventory turnover was 3.3 times compared to 2.8 times
  • Net cash provided by operating activities in the first half of the fiscal year declined $22.1 million to $37.3 million primarily due to an increase in accounts receivable and a dispute settlement payment of $15.0 million, partially offset by increased net income

Fiscal 2019 Annual Outlook

For fiscal 2019, the Company is increasing its outlook for consolidated net sales revenue to be in the range of $1.535 to $1.560 billion, which implies consolidated sales growth of 3.8% to 5.5% after accounting for the expected impact from the adoption of ASU 2014-09 “Revenue from Contracts with Customers” (Revenue Recognition Standard) in fiscal 2019 with conforming reclassifications to fiscal 2018. Please refer to the table entitled “Fiscal Year 2019 Outlook for Net Sales Revenue After Adoption of Revenue Recognition Standard” in the accompanying tables to this press release for additional information.

The Company’s net sales outlook assumes the severity of the cough/cold/flu season will be in line with historical averages, which unfavorably impacts the year-over-year comparison by 1.1%. The Company’s net sales outlook also assumes that September 2018 foreign currency exchange rates will remain constant for the remainder of the fiscal year. Finally, the Company’s net sales outlook reflects the following expectations by segment:

  • Housewares net sales growth of 9% to 11%;
  • Health & Home net sales growth of 5% to 7%, including an unfavorable impact of approximately 2.3% from the average cough/cold/flu season assumption; and
  • Beauty net sales decline in the low- to mid-single digits.

The Company is also increasing its EPS outlook, now expecting consolidated GAAP diluted EPS from continuing operations of $6.31 to $6.46 and non-GAAP adjusted diluted EPS from continuing operations in the range of $7.65 to $7.90, which excludes any asset impairment charges, restructuring charges, share-based compensation expense and intangible asset amortization expense. The Company now expects the year-over-year comparison of adjusted diluted EPS from continuing operations to be impacted by an expected increase in growth investments in support of the Company’s Leadership Brands of 18% to 22% in fiscal 2019, an increase from the Company's prior outlook of a 14% to 18% increase. As a result, the Company expects some compression in adjusted diluted EPS from continuing operations in the third quarter of the fiscal year. The timing and execution of the Company’s marketing expenditures can vary significantly from planned amounts, which could materially impact adjusted diluted EPS results from quarter to quarter and compared to expectations.

The Company’s diluted EPS from continuing operations outlook assumes that September 2018 foreign currency exchange rates will remain constant for the remainder of the fiscal year. The diluted earnings per share outlook is based on an updated estimated weighted average diluted shares outstanding of 26.6 million.

As previously announced, the Company has initiated Project Refuel, which is now targeting annualized profit improvement of approximately $8.0 million to $10.0 million over the duration of the plan. The plan is estimated to be completed by the first quarter of fiscal 2020, and the Company now expects to incur total cumulative restructuring charges in the range of $4.4 million to $5.5 million over the period of the plan.

The Company now expects a reported GAAP effective tax rate range of 8.5% to 10.5%, and an adjusted effective tax rate range of 8.0% to 10.0% for the full fiscal year 2019. Please refer to the schedule entitled “Effective Tax Rate (GAAP) and Adjusted Effective Tax Rate (Non-GAAP)” in the accompanying tables to this press release.

The likelihood and potential impact of any fiscal 2019 acquisitions and divestitures, future asset impairment charges, future foreign currency fluctuations, or further share repurchases are unknown and cannot be reasonably estimated; therefore, they are not included in the Company’s sales and earnings outlook.

Conference Call and Webcast

The Company will conduct a teleconference in conjunction with today’s earnings release. The teleconference begins at 9:00 a.m. Eastern Time today, Tuesday, October 9, 2018. Investors and analysts interested in participating in the call are invited to dial (800) 458-4121 approximately ten minutes prior to the start of the call. The conference call will also be webcast live at: http://investor.hotus.com/. A telephone replay of this call will be available at 12:00 p.m. Eastern Time on October 9, 2018 until 11:59 p.m. Eastern Time on October 16, 2018 and can be accessed by dialing (844) 512-2921 and entering replay pin number 3657058. A replay of the webcast will remain available on the website for one year.

Non-GAAP Financial Measures

The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States of America (“GAAP”). To supplement its presentation, the Company discloses certain financial measures that may be considered non-GAAP financial measures, such as Leadership Brand net sales, adjusted operating income, adjusted operating margin, adjusted effective tax rate, adjusted income, adjusted diluted earnings per share, EBITDA and adjusted EBITDA, which are presented in accompanying tables to this press release along with a reconciliation of these financial measures to their corresponding GAAP-based measures presented in the Company’s condensed consolidated statements of income. All references to our continuing operations exclude the Nutritional Supplements segment.

About Helen of Troy Limited

Helen of Troy Limited (NASDAQ:HELE) is a leading global consumer products company offering creative solutions for its customers through a strong portfolio of well-recognized and widely-trusted brands, including OXO, Hydro Flask, Vicks, Braun, Honeywell, PUR, and Hot Tools. All trademarks herein belong to Helen of Troy Limited (or its affiliates) and/or are used under license from their respective licensors.

For more information about Helen of Troy, please visit http://investor.hotus.com/

Forward Looking Statements

Certain written and oral statements made by our Company and subsidiaries of our Company may constitute “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. This includes statements made in this press release. Generally, the words “anticipates”, “believes”, “expects”, “plans”, “may”, “will”, “should”, “seeks”, “estimates”, “project”, “predict”, “potential”, “continue”, “intends”, and other similar words identify forward-looking statements. All statements that address operating results, events or developments that we expect or anticipate will occur in the future, including statements related to sales, earnings per share results, and statements expressing general expectations about future operating results, are forward-looking statements and are based upon our current expectations and various assumptions. We believe there is a reasonable basis for our expectations and assumptions, but there can be no assurance that we will realize our expectations or that our assumptions will prove correct. Forward-looking statements are subject to risks that could cause them to differ materially from actual results. Accordingly, we caution readers not to place undue reliance on forward-looking statements. The forward-looking statements contained in this press release should be read in conjunction with, and are subject to and qualified by, the risks described in the Company’s Form 10-K for the year ended February 28, 2018, and in our other filings with the SEC. Investors are urged to refer to the risk factors referred to above for a description of these risks. Such risks include, among others, our ability to deliver products to our customers in a timely manner and according to their fulfillment standards, the costs of complying with the business demands and requirements of large sophisticated customers, our relationships with key customers and licensors, our dependence on the strength of retail economies and vulnerabilities to any prolonged economic downturn, our dependence on sales to several large customers and the risks associated with any loss or substantial decline in sales to top customers, expectations regarding any proposed restructurings, our recent and future acquisitions or divestitures, including our ability to realize anticipated cost savings, synergies and other benefits along with our ability to effectively integrate acquired businesses or separate divested businesses, circumstances which may contribute to future impairment of goodwill, intangible or other long-lived assets, the retention and recruitment of key personnel, foreign currency exchange rate fluctuations, disruptions in U.S., U.K., Eurozone, and other international credit markets, risks associated with weather conditions, the duration and severity of the cold and flu season and other related factors, our dependence on foreign sources of supply and foreign manufacturing, and associated operational risks including, but not limited to, long lead times, consistent local labor availability and capacity, and timely availability of sufficient shipping carrier capacity, labor and energy on cost of goods sold and certain operating expenses, the geographic concentration and peak season capacity of certain U.S. distribution facilities increases our exposure to significant shipping disruptions and added shipping and storage costs, our projections of product demand, sales and net income are highly subjective in nature and future sales and net income could vary in a material amount from such projections, the risks associated with the use of trademarks licensed from and to third parties, our ability to develop and introduce a continuing stream of new products to meet changing consumer preferences, trade barriers, exchange controls, expropriations, and other risks associated with U.S. and foreign operations, the risks associated with significant tariffs or other restrictions on imports from China or any retaliatory trade measures taken by China, the risks to our liquidity as a result of changes to capital market conditions and other constraints or events that impose constraints on our cash resources and ability to operate our business, the costs, complexity and challenges of upgrading and managing our global information systems, the risks associated with information security breaches, the risks associated with product recalls, product liability, other claims, and related litigation against us, the risks associated with accounting for tax positions, tax audits and related disputes with taxing authorities, the risks of potential changes in laws in the U.S. or abroad, including tax laws, regulations or treaties, employment and health insurance laws and regulations, and laws relating to environmental policy, personal data, financial regulation, transportation policy and infrastructure policy along with the costs and complexities of compliance with such laws, and our ability to continue to avoid classification as a controlled foreign corporation. We undertake no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.

Condensed Consolidated Statements of Income
(Unaudited)
(in thousands, except per share data)

   
Three Months Ended August 31,
2018     2017
Sales revenue, net (9) $ 393,548     100.0 % $ 344,949     100.0 %
Cost of goods sold 238,375   60.6 % 201,472   58.4 %
Gross profit 155,173 39.4 % 143,477 41.6 %
Selling, general and administrative expense ("SG&A") (9) 103,654 26.3 % 103,770 30.1 %
Asset impairment charges (8) % %
Restructuring charges (3) 859   0.2 %   %
Operating income 50,660 12.9 % 39,707 11.5 %
Nonoperating income, net 85 % 81 %
Interest expense (2,755 ) (0.7 )% (3,754 ) (1.1 )%
Income before income tax 47,990 12.2 % 36,034 10.4 %
Income tax expense 3,973   1.0 % 1,462   0.4 %
Income from continuing operations 44,017 11.2 % 34,572 10.0 %
Loss from discontinued operations, net of tax   % (25,639 ) (7.4 )%
Net income $ 44,017   11.2 % $ 8,933   2.6 %
Earnings (loss) per share - diluted:
Continuing operations $ 1.66 $ 1.26
Discontinued operations

  (0.94 )
Total earnings per share - diluted $ 1.66   $ 0.33  
 
Weighted average shares of common stock used in computing diluted earnings per share 26,557 27,401
 
   
Six Months Ended August 31,
2018     2017
Sales revenue, net (9) $ 748,227     100.0 % $ 670,440     100.0 %
Cost of goods sold 446,496   59.7 % 395,393   59.0 %
Gross profit 301,731 40.3 % 275,047 41.0 %
SG&A (9) 205,160 27.4 % 200,757 29.9 %
Asset impairment charges (8) % 4,000 0.6 %
Restructuring charges (3) 2,584   0.3 %   %
Operating income 93,987 12.6 % 70,290 10.5 %
Nonoperating income, net 160 % 247 %
Interest expense (5,442 ) (0.7 )% (7,479 ) (1.1 )%
Income before income tax 88,705 11.9 % 63,058 9.4 %
Income tax expense 6,515   0.9 % 1,178   0.2 %
Income from continuing operations 82,190 11.0 % 61,880 9.2 %
Loss from discontinued operations, net of tax (381 ) (0.1 )% (47,079 ) (7.0 )%
Net income $ 81,809   10.9 % $ 14,801   2.2 %
Earnings (loss) per share - diluted:
Continuing operations $ 3.09 $ 2.26
Discontinued operations (0.01 ) (1.72 )
Total earnings per share - diluted $ 3.07   $ 0.54  
 
Weighted average shares of common stock used in computing diluted earnings per share 26,612 27,323
 

HELEN OF TROY LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Income and Reconciliation of Non-GAAP Financial Measures – Adjusted Operating Income, Adjusted Income and Adjusted Diluted Earnings Per Share (“EPS”) (1)
(Unaudited)
(in thousands, except per share data)

   
Three Months Ended August 31, 2018
As Reported

(GAAP)

    Adjustments   Adjusted

(Non-GAAP)

Sales revenue, net (9) $ 393,548     100.0 % $ $ 393,548     100.0 %
Cost of goods sold 238,375   60.6 %   238,375   60.6 %
Gross profit 155,173 39.4 % 155,173 39.4 %
SG&A (9) 103,654 26.3 % (3,402 ) (4) 95,563 24.3 %
(4,689 ) (5)
Asset impairment charges (8) % %
Restructuring charges (3) 859   0.2 % (859 ) (3)   %
Operating income 50,660 12.9 % 8,950 59,610 15.1 %
Nonoperating income, net 85 % 85 %
Interest expense (2,755 ) (0.7 )%   (2,755 ) (0.7 )%
Income before income tax 47,990 12.2 % 8,950 56,940 14.5 %
Income tax expense 3,973   1.0 % 434   4,407   1.1 %
Income from continuing operations 44,017   11.2 % 8,516   52,533   13.3 %
Diluted EPS from continuing operations $ 1.66   $ 0.32   $ 1.98  
Weighted average shares of common stock used in computing diluted EPS 26,557 26,557
 
   
Three Months Ended August 31, 2017
As Reported

(GAAP)

    Adjustments   Adjusted

(Non-GAAP)

Sales revenue, net (9) $ 344,949     100.0 % $ $ 344,949     100.0 %
Cost of goods sold 201,472   58.4 %   201,472   58.4 %
Gross profit 143,477 41.6 % 143,477 41.6 %
SG&A (9) 103,770 30.1 % (4,690 ) (4) 92,392 26.8 %
(3,092 ) (5)
(3,596 ) (7)
Asset impairment charges (8) % %
Restructuring charges (3)   %     %
Operating income 39,707 11.5 % 11,378 51,085 14.8 %
Nonoperating income, net 81 % 81 %
Interest expense (3,754 ) (1.1 )%   (3,754 ) (1.1 )%
Income before income tax 36,034 10.4 % 11,378 47,412 13.7 %
Income tax expense 1,462   0.4 % 743   2,205   0.6 %
Income from continuing operations 34,572   10.0 % 10,635   45,207   13.1 %
Diluted EPS from continuing operations $ 1.26   $ 0.39   $ 1.65  
Weighted average shares of common stock used in computing diluted EPS 27,401 27,401
 

Condensed Consolidated Statements of Income and Reconciliation of Non-GAAP Financial Measures – Adjusted Operating Income, Adjusted Income and Adjusted Diluted Earnings Per Share (“EPS”) (1)
(Unaudited)
(in thousands, except per share data)

   
Six Months Ended August 31, 2018
As Reported

(GAAP)

    Adjustments   Adjusted

(Non-GAAP)

Sales revenue, net (9) $ 748,227     100.0 % $ $ 748,227     100.0 %
Cost of goods sold 446,496   59.7 %   446,496   59.7 %
Gross profit 301,731 40.3 % 301,731 40.3 %
SG&A (9) 205,160 27.4 % (7,522 ) (4) 186,625 24.9 %
(11,013 ) (5)
Asset impairment charges (8) % %
Restructuring charges (3) 2,584   0.3 % (2,584 ) (3)   %
Operating income 93,987 12.6 % 21,119 115,106 15.4 %
Nonoperating income, net 160 % 160 %
Interest expense (5,442 ) (0.7 )%   (5,442 ) (0.7 )%
Income before income tax 88,705 11.9 % 21,119 109,824 14.7 %
Income tax expense 6,515   0.9 % 979   7,494   1.0 %
Income from continuing operations 82,190   11.0 % 20,140   102,330   13.7 %
Diluted EPS from continuing operations $ 3.09   $ 0.76   $ 3.85  
Weighted average shares of common stock used in computing diluted EPS 26,612 26,612
 
   
Six Months Ended August 31, 2017
As Reported

(GAAP)

    Adjustments   Adjusted

(Non-GAAP)

Sales revenue, net (9) $ 670,440     100.0 % $ $ 670,440     100.0 %
Cost of goods sold 395,393   59.0 %   395,393   59.0 %
Gross profit 275,047 41.0 % 275,047 41.0 %
SG&A (9) 200,757 29.9 % (9,538 ) (4) 181,393 27.1 %
(6,230 ) (5)
(3,596 ) (7)
Asset impairment charges (8) 4,000 0.6 % (4,000 ) (8) %
Restructuring charges (3)   %     %
Operating income 70,290 10.5 % 23,364 93,654 14.0 %
Nonoperating income, net 247 % 247 %
Interest expense (7,479 ) (1.1 )%   (7,479 ) (1.1 )%
Income before income tax 63,058 9.4 % 23,364 86,422 12.9 %
Income tax expense 1,178   0.2 % 1,749   2,927   0.4 %
Income from continuing operations 61,880   9.2 % 21,615   83,495   12.5 %
Diluted EPS from continuing operations $ 2.26   $ 0.79   $ 3.06  
Weighted average shares of common stock used in computing diluted EPS 27,323 27,323
 

Consolidated and Segment Net Sales, Operating Margin and Adjusted Operating Margin (non-GAAP) (1)
(Unaudited)
(in thousands)

   
Three Months Ended August 31,
Housewares     Health & Home     Beauty     Total
Fiscal 2018 sales revenue, net $ 115,124 $ 146,063 $ 83,762 $ 344,949
Core business growth (decline) 22,340 29,588 (3,076 ) 48,852
Impact of foreign currency 34   132   (419 ) (253 )
Change in sales revenue, net 22,374   29,720   (3,495 ) 48,599  
Fiscal 2019 sales revenue, net $ 137,498   $ 175,783   $ 80,267   $ 393,548  
Total net sales revenue growth (decline) 19.4 % 20.3 % (4.2 )% 14.1 %
Core business growth (decline) 19.4 % 20.3 % (3.7 )% 14.2 %
Impact of foreign currency

%

0.1 % (0.5 )% (0.1 )%
Operating margin (GAAP)
Fiscal 2019 20.6 % 7.8 % 10.8 % 12.9 %
Fiscal 2018 20.3 % 5.1 % 10.7 % 11.5 %
Adjusted operating margin (non-GAAP)
Fiscal 2019 22.4 % 10.5 % 12.8 % 15.1 %
Fiscal 2018 22.4 % 9.6 % 13.6 % 14.8 %
 
   
Six Months Ended August 31,
Housewares     Health & Home     Beauty     Total
Fiscal 2018 sales revenue, net $ 213,789 $ 294,352 $ 162,299 $ 670,440
Core business growth (decline) 40,586 41,971 (7,974 ) 74,583
Impact of foreign currency 426   2,891   (113 ) 3,204  
Change in sales revenue, net 41,012   44,862   (8,087 ) 77,787  
Fiscal 2019 sales revenue, net $ 254,801   $ 339,214   $ 154,212   $ 748,227  
Total net sales revenue growth (decline) 19.2 % 15.2 % (5.0 )% 11.6 %
Core business growth (decline) 19.0 % 14.3 % (4.9 )% 11.1 %
Impact of foreign currency 0.2 % 1.0 % (0.1 )% 0.5 %
Operating margin (GAAP)
Fiscal 2019 19.8 % 9.8 % 6.6 % 12.6 %
Fiscal 2018 19.3 % 7.4 % 4.5 % 10.5 %
Adjusted operating margin (non-GAAP)
Fiscal 2019 22.1 % 12.8 % 9.9 % 15.4 %
Fiscal 2018 21.2 % 10.9 % 10.0 % 14.0 %
 

Leadership Brand Net Sales Revenue (1) (2)
(Unaudited)
(in thousands)

       
Three Months Ended August 31,     Six Months Ended August 31,
2018     2017     2018     2017
Leadership Brand sales revenue, net $ 319,045 $ 264,860 $ 599,804     $ 509,706
All other sales revenue, net 74,503   80,089       148,423       160,734
Total sales revenue, net $ 393,548   $ 344,949       $ 748,227       $ 670,440
 

SELECTED OTHER DATA
Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income to Adjusted Operating Income (non-GAAP) (1)
(Unaudited)
(in thousands)

   
Three Months Ended August 31, 2018
Housewares     Health & Home     Beauty     Total
Operating income, as reported (GAAP) $   28,329     20.6 % $   13,631     7.8 % $   8,700     10.8 % $   50,660     12.9 %
Restructuring charges (3)             859 1.1

%

   

859

0.2 %
Subtotal 28,329 20.6 % 13,631 7.8 % 9,559 11.9 % 51,519 13.1 %
Amortization of intangible assets 511 0.4 % 2,704 1.5 % 186 0.2 % 3,401 0.9 %
Non-cash share-based compensation 1,994 1.5 %     2,156 1.2 %     539 0.7 %     4,689 1.2 %
Adjusted operating income (non-GAAP) $   30,834 22.4 % $   18,491 10.5 % $   10,284 12.8 % $   59,609 15.1 %
 
Three Months Ended August 31, 2017
Housewares Health & Home Beauty Total
Operating income, as reported (GAAP) $ 23,340 20.3 % $ 7,415 5.1 % $ 8,952 10.7 % $ 39,707 11.5 %
TRU bankruptcy charge (7) 956 0.8 %     2,640 1.8 %           3,596 1.0 %
Subtotal 24,296 21.1 % 10,055 6.9 % 8,952 10.7 % 43,303 12.6 %
Amortization of intangible assets 485 0.4 % 2,790 1.9 % 1,415 1.7 % 4,690 1.4 %
Non-cash share-based compensation $   970 0.8 % $   1,132 0.8 % $   990 1.2 % $   3,092 0.9 %
Adjusted operating income (non-GAAP) $   25,751 22.4 % $   13,977 9.6 % $   11,357 13.6 % $   51,085 14.8 %
 
Six Months Ended August 31, 2018
Housewares Health & Home Beauty Total
Operating income, as reported (GAAP) $ 50,512 19.8 % $ 33,288 9.8 % $ 10,187 6.6 %

$

93,987

12.6 %
Restructuring charges (3) 760 0.3 %     358 0.1 %       1,466 1.0 %     2,584 0.3 %
Subtotal 51,272 20.1 % 33,646 9.9 % 11,653 7.6 % 96,571 12.9 %
Amortization of intangible assets 985 0.4 % 5,408 1.6 % 1,129 0.7 % 7,522 1.0 %
Non-cash share-based compensation 3,980 1.6 %     4,482 1.3 %       2,551 1.7 %     11,013 1.5 %
Adjusted operating income (non-GAAP) $   56,237 22.1 % $   43,536 12.8 %   $   15,333 9.9 % $   115,106 15.4 %
 
Six Months Ended August 31, 2017
Housewares Health & Home Beauty Total
Operating income, as reported (GAAP) $ 41,276 19.3 % $ 21,659 7.4 % $ 7,355 4.5 % $ 70,290 10.5 %
Asset impairment charges (8) 4,000 2.5

%

4,000 0.6 %
TRU bankruptcy charge (7) 956 0.4 %     2,640 0.9 %             3,596 0.5 %
Subtotal 42,232 19.8 % 24,299 8.3 % 11,355 7.0 % 77,886 11.6 %
Amortization of intangible assets 1,129 0.5 % 5,576 1.9 % 2,833 1.7 % 9,538 1.4 %
Non-cash share-based compensation 1,941 0.9 %     2,260 0.8 %       2,029 1.3 %     6,230 0.9 %
Adjusted operating income (non-GAAP) $   45,302 21.2 % $   32,135 10.9 %   $   16,217 10.0 % $   93,654 14.0 %
 

SELECTED OTHER DATA
Reconciliation of Non-GAAP Financial Measures - EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA by Segment (1)
(Unaudited)
(in thousands)

   
Three Months Ended August 31, 2018
Housewares     Health & Home     Beauty     Total
Operating income, as reported (GAAP) $ 28,329 $ 13,631 $ 8,700 $ 50,660
Depreciation and amortization, excluding amortized interest 1,522 4,229 1,562 7,313
Nonoperating income, net     85   85
EBITDA (non-GAAP) 29,851 17,860 10,347 58,058
Add: Restructuring charges (3) 859 859
Non-cash share-based compensation 1,994   2,156   539   4,689
Adjusted EBITDA (non-GAAP) $ 31,845   $ 20,016   $ 11,745   $ 63,606
 
Three Months Ended August 31, 2017
Housewares Health & Home Beauty Total
Operating income, as reported (GAAP) $ 23,340 $ 7,415 $ 8,952 $ 39,707
Depreciation and amortization, excluding amortized interest 1,419 4,183 2,813 8,415
Nonoperating income, net     81   81
EBITDA (non-GAAP) 24,759 11,598 11,846 48,203
Add: TRU bankruptcy charge (7) 956 2,640 3,596
Non-cash share-based compensation 970   1,132   990   3,092
Adjusted EBITDA (non-GAAP) $ 26,685   $ 15,370   $ 12,836   $ 54,891
 
Six Months Ended August 31, 2018
Housewares Health & Home Beauty Total
Operating income, as reported (GAAP) $ 50,512 $ 33,288 $ 10,187 $ 93,987
Depreciation and amortization, excluding amortized interest 3,006 8,377 3,912 15,295
Nonoperating income, net     160   160
EBITDA (non-GAAP) 53,518 41,665 14,259 109,442
Add: Restructuring charges (3) 760 358 1,466 2,584
Non-cash share-based compensation 3,980   4,482   2,551   11,013
Adjusted EBITDA (non-GAAP) $ 58,258   $ 46,505   $ 18,276   $ 123,039
 
Six Months Ended August 31, 2017
Housewares Health & Home Beauty Total
Operating income, as reported (GAAP) $ 41,276 $ 21,659 $ 7,355 $ 70,290
Depreciation and amortization, excluding amortized interest 2,846 8,321 5,589 16,756
Nonoperating income, net     247   247
EBITDA (non-GAAP) 44,122 29,980 13,191 87,293
Add: TRU bankruptcy charge (7) 956 2,640 3,596
Non-cash asset impairment charges 4,000 4,000
Non-cash share-based compensation 1,941   2,260   2,029   6,230
Adjusted EBITDA (non-GAAP) $ 47,019   $ 34,880   $ 19,220   $ 101,119
 

Reconciliation of GAAP Income and Diluted Earnings Per Share (“EPS”) from Continuing Operations to Adjusted Income and Adjusted EPS from Continuing Operations (non-GAAP) (1)(Unaudited)
(dollars in thousands, except per share data)

   
Three Months Ended August 31, 2018
Income from Continuing Operations   Diluted EPS
      Before Tax   Tax   Net of Tax Before Tax   Tax   Net of Tax
As reported (GAAP) $ 47,990 $ 3,973 $ 44,017 $ 1.81 $ 0.15 $ 1.66
Restructuring charges (3)     859   41   818   0.03     0.03
Subtotal 48,849 4,014 44,835 1.84 0.15 1.69
Amortization of intangible assets 3,402 56 3,346 0.13 0.13
Non-cash share-based compensation     4,689   337   4,352   0.18   0.01   0.16
Adjusted (non-GAAP) $ 56,940   $ 4,407   $ 52,533   $ 2.14   $ 0.17   $ 1.98
 
Weighted average shares of common stock used in computing diluted EPS 26,557
 
Three Months Ended August 31, 2017
Income from Continuing Operations Diluted EPS
      Before Tax Tax Net of Tax Before Tax Tax Net of Tax
As reported (GAAP) $ 36,034 $ 1,462 $ 34,572 $ 1.32 $ 0.05 $ 1.26
TRU bankruptcy charge (7)     3,596       204       3,392       0.13       0.01       0.12
Subtotal 39,630 1,666 37,964 1.45 0.06 1.39
Amortization of intangible assets 4,690 198 4,492 0.17 0.01 0.16
Non-cash share-based compensation     3,092   341   2,751   0.11   0.01   0.10
Adjusted (non-GAAP) $ 47,412   $ 2,205   $ 45,207   $ 1.73   $ 0.08   $ 1.65
 
Weighted average shares of common stock used in computing diluted EPS 27,401
 
Six Months Ended August 31, 2018
Income from Continuing Operations Diluted EPS
      Before Tax Tax Net of Tax Before Tax Tax Net of Tax
As reported (GAAP) $ 88,705 $ 6,515 $ 82,190 $ 3.33 $ 0.24 $ 3.09
Restructuring charges (3)     2,584   183   2,401   0.10   0.01   0.09
Subtotal 91,289 6,698 84,591 3.43 0.25 3.18
Amortization of intangible assets 7,522 190 7,332 0.28 0.01 0.28
Non-cash share-based compensation     11,013   606   10,407   0.41   0.02   0.39
Adjusted (non-GAAP) $ 109,824   $   7,494   $   102,330   $   4.13   $   0.28   $   3.85
 
Weighted average shares of common stock used in computing diluted EPS 26,612
 
Six Months Ended August 31, 2017
Income from Continuing Operations Diluted EPS
      Before Tax Tax Net of Tax Before Tax Tax Net of Tax
As reported (GAAP) $ 63,058 $ 1,178 $ 61,880 $ 2.31 $ 0.04 $ 2.26
Asset impairment charges 4,000 418 3,582 0.15 0.02 0.13
TRU bankruptcy charge (7)     3,596     204     3,392     0.13     0.01     0.12
Subtotal 70,654 1,800 68,854 2.59 0.07 2.52
Amortization of intangible assets 9,538 447 9,091 0.35 0.02 0.33
Non-cash share-based compensation     6,230   680   5,550   0.23   0.02   0.20
Adjusted (non-GAAP) $ 86,422   $   2,927   $   83,495   $   3.16   $   0.11   $   3.06
 
 
Weighted average shares of common stock used in computing diluted EPS 27,323
 

Selected Consolidated Balance Sheet, Cash Flow and Liquidity Information (6)
(Unaudited)
(in thousands)

   
  August 31,
  2018       2017
Balance Sheet:
Cash and cash equivalents

$

 

19,915

$

 

14,095
Receivables, net 313,615 243,548
Inventory, net 284,828 318,701
Total assets, current 636,367 589,098
Total assets 1,694,588 1,651,711
Total liabilities, current 298,007 308,120
Total long-term liabilities 320,841 444,192
Total debt 301,076 444,266
Consolidated stockholders' equity 1,075,740 1,037,339
Liquidity:
Working capital

$

 

338,360

$

 

280,978
 
   
Six Months Ended August 31,
2018     2017
Cash Flow:
Depreciation and amortization $ 15,295 $ 16,756
Net cash provided by operating activities 37,311 59,404
Capital and intangible asset expenditures 13,061 7,605
Net debt proceeds (repayments) 10,700 (42,000 )
Payments for repurchases of common stock 37,067
 

Fiscal 2019 Revised Outlook for Net Sales Revenue After Adoption of Revenue Recognition Standard
(Unaudited)
(in thousands)

       
Fiscal 2018 Revised Outlook for Fiscal 2019
Net sales revenue prior to adoption $ 1,489,747 $ 1,548,000     $ 1,573,000
Reclassification of expense from SG&A to net sales revenue (10,901 ) (13,000 ) (13,000 )
Expected net sales revenue after adoption $ 1,478,846   $ 1,535,000   $ 1,560,000  
 
Fiscal 2019 net sales revenue growth after adoption 3.8 %

5.5%

 

 

Reconciliation of Fiscal 2019 Outlook for GAAP Diluted Earnings Per Share (“EPS”) from Continuing Operations to Adjusted Diluted EPS from Continuing Operations (non-GAAP) (1)
(Unaudited)

           

Six Months
Ended August
31, 2018

Outlook for the

Balance of the

Fiscal Year

(Six Months)

Revised Outlook Fiscal 2019
Diluted EPS from continuing operations, as reported (GAAP) $ 3.09 $ 3.22       $ 3.37 $ 6.31       $ 6.46
Restructuring charges, net of tax 0.09   0.01   0.04   0.10   0.13
Subtotal 3.18 3.23 3.41 6.41 6.59
Amortization of intangible assets, net of tax 0.28 0.23 0.25 0.51 0.53
Non-cash share-based compensation, net of tax 0.39   0.34       0.39   0.73       0.78
Adjusted diluted EPS from continuing operations (non-GAAP) $ 3.85   $ 3.80       $ 4.05   $ 7.65       $ 7.90
 

Effective Tax Rate (GAAP) and Adjusted Effective Tax Rate (Non-GAAP) (1)
(Unaudited)

     

Six Months
Ended August
31, 2018

Outlook for the

Balance of the

Fiscal Year

(Six Months)

Revised Outlook Fiscal 2019
Effective tax rate, as reported (GAAP)

7.3%

9.4%     13.1% 8.5%     10.5%
Restructuring charges (0.1)% —% —% —% —%
Subtotal

7.2%

9.4% 13.1% 8.5% 10.5%
Amortization of intangible assets (0.3)% (0.3)% (0.3)% (0.3)% (0.3)%
Non-cash share based compensation (0.1)% (0.2)% (0.2)% (0.2)% (0.2)%
Adjusted effective tax rate

6.8%

8.9%

12.6% 8.0% 10.0%
 

HELEN OF TROY LIMITED AND SUBSIDIARIES

Notes to Press Release

   
(1) This press release contains non-GAAP financial measures. Leadership Brand net sales revenue, adjusted operating income, adjusted operating margin, adjusted effective tax rate, adjusted income, adjusted diluted earnings per share, EBITDA, and adjusted EBITDA (“Non-GAAP measures”) that are discussed in the accompanying press release or in the preceding tables may be considered non-GAAP financial information as contemplated by SEC Regulation G, Rule 100. Accordingly, we are providing the preceding tables that reconcile these measures to their corresponding GAAP-based measures presented in our Consolidated Statements of Income in the accompanying tables to the press release. The Company believes that these non-GAAP measures provide useful information to management and investors regarding financial and business trends relating to its financial condition and results of operations. We believe that these non-GAAP financial measures, in combination with the Company’s financial results calculated in accordance with GAAP, provide investors with additional perspective regarding the impact of certain charges on net income and earnings per share. We also believe that these non-GAAP measures facilitate a more direct comparison of the Company’s performance with its competitors. We further believe that including the excluded charges would not accurately reflect the underlying performance of the Company’s continuing operations for the period in which the charges are incurred, even though such charges may be incurred and reflected in the Company’s GAAP financial results in the near future. Additionally, the non-GAAP measures are used by management for measuring and evaluating the Company’s performance. The material limitation associated with the use of the non-GAAP measures is that the non-GAAP measures do not reflect the full economic impact of the Company’s activities. These non-GAAP measures are not prepared in accordance with GAAP, are not an alternative to GAAP financial information, and may be calculated differently than non-GAAP financial information disclosed by other companies. Accordingly, undue reliance should not be placed on non-GAAP information.
 
(2) Leadership Brand net sales consists of revenue from the OXO, Honeywell, Braun, PUR, Hydro Flask, Vicks and Hot Tools brands.
 
(3) Charges incurred in conjunction with the Company’s restructuring plan (Project Refuel) for the three and six months ended August 31, 2018, with no comparable charges for the same period last year.
 
(4) Amortization of intangible assets.
 
(5) Non-cash share-based compensation.
 
(6) Amounts presented are from continuing operations with the exception of stockholders’ equity, which is presented on a consolidated basis and includes discontinued operations.
 
(7) A $3.6 million charge ($3.4 million after tax) related to the Toys “R” Us, Inc. (“TRU”) bankruptcy for both the three and six months ended August 31, 2017.
 
(8) There were no asset impairment charges recorded in continuing operations during the three months ended August 31, 2018 and 2017, respectively. There were no asset impairment charges recorded in continuing operations during the six months ended August 31, 2018, compared to a pre-tax non-cash asset impairment charge of $4.0 million recorded during the six months ended August 31, 2017 in our Beauty segment.
 
(9) We adopted ASU 2014-09 in the first quarter of fiscal 2019 and have reclassified amounts in the prior year’s statement of income to conform to the current period’s presentation, as follows:
 
           
Before Reclassification After Reclassification
Statement of Income (in thousands)     Three Months Ended August 31, 2017     Reclassification     Three Months Ended August 31, 2017
Sales revenue, net $ 347,205 $ (2,256 ) $ 344,949
SG&A     $ 106,026   $ (2,256 ) $ 103,770
 
           
Before Reclassification After Reclassification
Statement of Income (in thousands)     Six Months Ended August 31, 2017     Reclassification     Six Months Ended August 31, 2017
Sales revenue, net $ 675,191 $ (4,751 ) $ 670,440
SG&A     $ 205,508       $ (4,751 )     $ 200,757
 

Investors:
Helen of Troy Limited
Anne Rakunas, 915-225-4841
Director, External Communications
or
ICR, Inc.
Allison Malkin, 203-682-8200
Sr. Managing Director

Source: Helen of Troy Limited