Helen Of Troy Limited · NASDAQ:HELE
Helen Of Troy — Q3 2025 Earnings Presentation
37 slides from Helen Of Troy's earnings presentation, Jan 8, 2025
Slide 1: Q3 Fiscal 2025 Earnings Results
Q3 Fiscal 2025 Earnings Results 1
Slide 2: Forward-Looking Statements and Reconciliation of Non-GAAP Financial Measures
Forward-Looking Statements and Reconciliation of Non-GAAP Financial Measures Forward-Looking Statements: Certain written and oral statements made by the Company and subsidiaries of the Company may constitute “forward-looking changes to its business practices, penalties, increased cost of operations,
Slide 3: Key Messages
Key Messages • Q3 consolidated net sales and adjusted EPS within Outlook range despite weak cough, cold, flu season globally • Fiscal year to date, seven of our key categories are growing or maintaining share; combined weighted distribution growth of 11% • Home & Outdoor grew net sales more than +4%
Slide 4: Q3 Fiscal 2025 Results Quarter Highlights
Q3 Fiscal 2025 Results Quarter Highlights Key Financial Metrics • Consolidated net sales and adjusted EPS within Outlook range despite weak cough, cold, flu season globally Net Sales Revenue ($M) Gross Margin • Gross margin increased by 90 basis points YOY to 48.9% primarily due to: o favorable inve
Slide 5: FY25: Reset and Revitalize Plan
FY25: Reset and Revitalize Plan Actions Building Blocks Implement revitalized, data-centric brand strategies Pegasus fuel reinvested in our brands Rebuild brand relevance and the innovation pipeline FY25 additional profit improvement actions Significant increase to growth investment spend Incrementa
Slide 6: Rebuilding Brand Relevance and Innovation
Rebuilding Brand Relevance and Innovation Proven Brand Building Framework 6
Slide 7: Continued Better Together M&A – Olive & June
Continued Better Together M&A – Olive & June • Broadens Helen of Troy’s customer reach within Beauty beyond hair care into the $2.3B at-home nail category* that saw and maintained step-change growth during COVID • Adds a distinct, modern, consumer-obsessed Insurgent Brand with clear growth potential
Slide 8: Nail Care: An Expansive Growth Category
Nail Care: An Expansive Growth Category Digitally Transforming Highly Resilient & Robust Exciting Growth Driver Digitally savvy customers are driving Nail Care has been a fast-growing Nail Care is a resilient sector that has new interest to the category and helping beauty category over the past five
Slide 9: Product Innovation: Gel Polish Launched October
Product Innovation: Gel Polish Launched October 24 Olive & June 9
Slide 10: Olive & June: Awards, Awards, Awards…
Olive & June: Awards, Awards, Awards… 2021 2022 2023 2024 Allure Best of Beauty Award Allure Best of Beauty Award Allure Best of Beauty Award Allure Best of Beauty Award for for Nail Polish for Press-on System and for Quick Dry Topcoat and Super Stick Mani & Nail Polish Long-Lasting Nail Polish Nail
Slide 11: Consumer Obsessed Innovation: Expanded Offerings OXO Brew
Consumer Obsessed Innovation: Expanded Offerings OXO Brew Rapid Brewer - #1 New Release in Coffee Machines on Amazon During the Thanksgiving Week 12-Cup Coffee Maker with Conical Burr Coffee Grinder Rapid Brewer Podless Single Serve Function 11
Slide 12: Consumer Obsessed: Agile, Culturally Relevant & Trend Right Hydro Flask
Consumer Obsessed: Agile, Culturally Relevant & Trend Right Hydro Flask “Every detail matters. Our rigorously tested leakproof technology is designed to keep up with your every move.” 12
Slide 13: New Product Launches: Daylite Travel Line Osprey
New Product Launches: Daylite Travel Line Osprey 13
Slide 14: Consumer Obsessed: Product Launch and Holiday Bundles
Consumer Obsessed: Product Launch and Holiday Bundles B&W DrybarNew Product Launches 14
Slide 15: Consumer Obsessed: New Product PR
Consumer Obsessed: New Product PR B&W New Product Launches Curlsmith 15
Slide 16: Consumer Obsessed: Holiday Promotions Revlon
Consumer Obsessed: Holiday Promotions Revlon Wal-Mart Holiday Pallet: 10/1 - 12/31/2024 16
Slide 17: Consumer Obsessed: Value Reframing PUR
Consumer Obsessed: Value Reframing PUR **Based on comparing a year's worth of bottled water (6.9oz) to a PUR system and 5 filters. Based on Nielsen US Scantrak sales. 17
Slide 18: Be Where The Shopper Shops: Distribution Gains
Be Where The Shopper Shops: Distribution Gains Braun and Vicks As of September 2024, Vicks Is The Only National Brand of Humidifiers On Shelf New Distribution in Costco and Walmart 18
Slide 19: Be Consumer Obsessed: Brand Recognition Beauty
Be Consumer Obsessed: Brand Recognition Beauty 19
Slide 20: Foster a Winning Culture
Foster a Winning Culture Helen of Troy Awarded one of “America’s Most Helen of Troy Jumped to #16 in the "2024 Responsible Companies 2025” by Newsweek Healthiest 100 Workplaces in America" 20
Slide 21: Return of Strong Free Cash Flow Provides Capital Allocation Optionality
Return of Strong Free Cash Flow Provides Capital Allocation Optionality Free Cash Flow (Millions)# Leverage Ratio#* License Personal 2.8x $269 Care 2.85x New Divestiture to Distribution 2.75x Center Opened April 2.0x 2023 2.0x $180 to $254 $145 $200 $215 to $155 1.2x 1.0x $63 Built strategic invento
Slide 22: Revised Fiscal 2025 Annual Outlook
Revised Fiscal 2025 Annual Outlook Expected High Level Assumptions Consolidated • Continued headwinds: Consolidated o impact from system execution challenges in first half fiscal 2025; Growth / (Decline) o lingering inflation and continued consumer spending softness, especially in certain discretion
Slide 23: Why Invest – Helen of Troy Flywheel Creates the Next Virtuous Cycle
Why Invest – Helen of Troy Flywheel Creates the Next Virtuous Cycle Accretive Capital Deployment Next-Level Growth Strategy and Investment • Even more Better Together M&A • Greater focus on higher growth and higher margin brands • Amplify the Invest to Grow portfolio • Significantly more brand and p
Slide 24: Elevating Lives, Soaring Together
Elevating Lives, Soaring Together
Slide 25: Glossary of Terms
Glossary of Terms Acquisition-related Expenses – Expenses associated with the definitive agreement Barbados tax reform – Represents a discrete tax charge to revalue existing to acquire Curlsmith and Olive & June deferred tax liabilities as a result of Barbados enacting a domestic corporate income Ad
Slide 26: Glossary of Terms
Glossary of Terms Gain on sale of distribution and office facilities – Gain on the sale of distribution and Return on Invested Capital (ROIC) – Net operating profit after tax (NOPAT) divided office facilities in El Paso, Texas during the third quarter of fiscal year 2024 by average invested capital.
Slide 27: Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income and Operating Margin
Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (Unaudited) (in thousands) Three Months Ended November 30, 2024 Home & Outdoor Beauty & Wellness Total Operating income, as reported (GAAP)
Slide 28: Reconciliation of Non-GAAP Financial Measures - GAAP Net Income to EBITDA
Reconciliation of Non-GAAP Financial Measures - GAAP Net Income to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (Unaudited) (in thousands) Three Months Ended November 30, 2024 2023 Net income, as reported (GAAP) $ 49,6
Slide 29: Reconciliation of Non-GAAP Financial Measures - GAAP Income and Diluted EPS to Adjusted
Reconciliation of Non-GAAP Financial Measures - GAAP Income and Diluted EPS to Adjusted Income and Adjusted Diluted EPS (Non-GAAP) (Unaudited) (in thousands, except per share data) Three Months Ended November 30, 2024 Income Diluted EPS Before Tax Tax Net of Tax Before Tax Tax Net of Tax As reported
Slide 30: Reconciliation of Non-GAAP Financial Measures - Net Cash from Operating Activities to Free Cash Flow
Reconciliation of Non-GAAP Financial Measures - GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (Unaudited) (in thousands) Nine Months Ended November 30, 2024 2023 Net cash provided by operating activities (GAAP) $ 78,236 $ 232,459 Less: Capital and intangible asset expen
Slide 31: Reconciliation of Non-GAAP Financial Measures – Net Cash to Free Cash Flow, Fiscal Years
Reconciliation of Non-GAAP Financial Measures – GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (Unaudited) (in thousands) Fiscal Years Ended Last Day of February, 2024 2023 2022 2021 2020 Net cash provided by operating activities (GAAP) $ 306,067 $ 208,242 $ 140,823 $ 31
Slide 32: Fiscal 2025 Outlook for Net Sales Revenue
Fiscal 2025 Outlook for Net Sales Revenue (Unaudited) (in thousands) Consolidated: Fiscal 2024 Outlook Fiscal 2025 Net sales revenue $ 2,005,050 $ 1,888,000 — $ 1,913,000 Net sales revenue decline (5.8)% — (4.6)% 32
Slide 33: Reconciliation of Non-GAAP Financial Measures – Fiscal 2025 Outlook for EBITDA
Reconciliation of Non-GAAP Financial Measures – Fiscal 2025 Outlook for GAAP Net Income to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (Unaudited) (in thousands) Outlook for the Balance of the Nine Months Ended Fiscal
Slide 34: Reconciliation of Non-GAAP Financial Measures – Fiscal 2025 Outlook for Diluted EPS
Reconciliation of Non-GAAP Financial Measures – Fiscal 2025 Outlook for GAAP Diluted EPS to Adjusted Diluted EPS (Non-GAAP) and GAAP Effective Tax Rate to Adjusted Effective Tax Rate (Non-GAAP) (Unaudited) Outlook for the Balance of the Nine Months Ended Fiscal Year Tax Rate Outlook November 30, 202
Slide 35: Reconciliation of Non-GAAP Financial Measures – Fiscal 2025 Outlook for Free Cash Flow
Reconciliation of Non-GAAP Financial Measures – Fiscal 2025 Outlook for GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (Unaudited) (in thousands) Outlook for the Balance of the Nine Months Ended Fiscal Year November 30, 2024 (Three Months) Outlook Fiscal 2025 Net cash pr
Slide 36: Reconciliation of Non-GAAP Financial Measures – GAAP Net Income to EBITDA
Reconciliation of Non-GAAP Financial Measures – GAAP Net Income to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (Unaudited) (in thousands) Fiscal Years Ended Last Day of February, 2024 2023 Net income, as reported (GAA
Slide 37: Reconciliation of Non-GAAP Financial Measures – Net Leverage Ratio
Reconciliation of Non-GAAP Financial Measures – Net Leverage Ratio (Non-GAAP) (Unaudited) (in thousands) Fiscal Year Ended February 29, 2024 Adjusted EBITDA (non-GAAP) $ 336,213 Bed, Bath & Beyond bankruptcy (4,213) Adjusted EBITDA per the credit agreement $ 332,000 Total borrowings under the credit