Helen of Troy ( NASDAQ: HELE ) shares slid on Thursday after management tempered full-year forecasts.
The hydro flask producer posted a fiscal first quarter result well above expectations. The company reported adjusted diluted EPS of $2.41 on revenue of $508.1M. Analysts had anticipated $1.86 in earnings per share on $474.17M in revenue.
However, shares fell nearly 7% in premarket trading as an updated forecast to 2023 forecasts fell below the Wall Street consensus. The company now expects consolidated net sales to $2.15-$2.2B and adjusted diluted EPS to $9.85-$10.35. Analysts had anticipated $2.37B in revenue alongside $12.27 in EPS.
“Since our April earnings release, the macroeconomic outlook has changed significantly as consumers shift their buying patterns and adapt to a number of factors including the impact of inflation and interest rates rising more rapidly than expected. In response, many of our major retail customers announced actions to rebalance their inventory stemming from rapid revisions to their sales forecasts,” CEO Julien Minneberg said. “We have lowered our sales and EPS outlooks for fiscal 2023, reflecting our current assessment of the impact of these new headwinds on our business.”
In particular, health and beauty sales are expected to decline sharply in coming quarters. In addition to the assumption of slower sales and cost increases, foreign currency impacts, higher interest rates, and an elevated effective tax rate are expected to negatively impact the company’s bottom line in 2023.
Read more on the earnings estimates for the quarters ahead .
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Helen of Troy stock slips on trimmed full-year guide