Shares of Helen of Troy Ltd. HELE, -10.53% tumbled 14.9% in premarket trading Wednesday toward a 4 1/2-year low, after the consumer products company, with brands including OXO, Hydro Flask and Braun, reported fiscal second-quarter earnings that beat expectations but cut its full-year outlook, as rising inflation has prompted consumers to change their spending patterns. Net income for the quarter to Aug. 31 fell to $30.7 million, or $1.28 a share, from $51.3 million, or $2.11 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.27 beat the FactSet consensus of $2.19. Sales grew 9.7% to $521.4 million, above the FactSet consensus of $519.1 million, as growth in home and outdoor and health and wellness sales offset a drop in beauty sales. In addition to inflation impacting spending patterns, Chief Executive Julien Mininbert said retailers continue to adjust inventories to be better aligned with updated sales forecasts. “We expect the current external operating environment to remain highly challenging, causing us to lower our fiscal year 2023 outlook,” Mininberg said. For fiscal 2023, the company cut its guidance ranges for adjusted EPS to $9.00 to $9.40 from $9.85 to $10.35 and for sales to $2.00 billion to $2.50 billion from $2.15 billion to $2.20 billion. The stock, which is on track to open at the lowest price seen during regular-session hours since April 2018, has tumbled 39.2% over the past three months through Tuesday while the S&P 500 SPX, -1.04% has slipped 1.1%.
