Helen of Troy (NASDAQ:HELE) stock cratered 28% yesterday after the company reported weaker-than-expected results for the first quarter of Fiscal 2025 (ended May 31, 2024) and issued a revised full-year outlook. Helen of Troy is a consumer products company that designs and manufactures housewares, healthcare, home, and beauty products under various brands.
Helen of Troy’s Weak Q1 Results
Helen of Troy reported adjusted earnings per share (EPS) of $0.99, down 48.9% year-over-year and much lower than the consensus of $1.59. Similarly, net sales fell 12.2% to $416.85 million, also missing the consensus estimates of $445.85 million.
The company’s Beauty & Wellness segment recorded the largest year-over-year net sales decline of 15.2% owing to a fall in sales of hair appliances, prestige hair care products, and humidifiers. Likewise, Home & Outdoor sales fell 8.6%, mainly due to lower replenishment orders from retail customers and technical issues at the company’s Tennessee distribution center.
HELE Slashes FY25 Outlook
Management lowered its full-year Fiscal 2025 guidance, given the declining demand in certain segments and inflationary conditions. The full-year revenue is now expected to be between $1.885 and $1.935 billion. Meanwhile, adjusted EPS is guided between $7 and $7.50 for FY25. For reference, analysts were forecasting FY25 net sales of $1.98 billion and adjusted EPS of $8.93.
Is Helen of Troy a Good Stock?
With two Buy and two Hold recommendations, HELE stock has a Moderate Buy consensus rating on TipRanks. The average Helen of Troy price target of $125.33 implies 94.8% upside potential from current levels. These ratings and price targets are subject to change as analysts could review their recommendations on the stock in reaction to the Q1 print and revised outlook. Year-to-date, HELE stock has lost nearly 47%.
