For fiscal 2019, Helen of Troy anticipates net sales growth of $1.485 billion to $1.510 billion, implying a consolidated sales growth of 0.4% to 2.1%. However, reflecting the impact of share repurchases in the quarter, the company lowered its GAAP EPS outlook to $6.27 to $6.42 from the earlier expected $6.30 to $6.50 outlook. Guidance for adjusted EPS from continuing operations was also lowered to $7.45 to $7.70 from $7.30 to $7.55 anticipated last quarter.
Continuing with the trend, Helen of Troy’s Beauty segment reported a sales decline of 5.8%, reflecting a decline in brick-and-mortar and unfavorable comparison from the retail fill-in of new product introductions in the year-ago period. This segment has been distressed due to the softness in the personal care category, hit by increasing competition. For fiscal 2019, in line with the historical sales trend, the company expects net sales decline in the low-to-mid single digits.
However, both Housewares, and Health & Home segments posted double-digit increases in sales for the quarter increasing 18% and 10.2% respectively. The growth in Housewares was paced by new product introductions, higher online sales, and a favorable impact of foreign currency fluctuations. In the Health & Home segment, sales were driven by wider international distribution and increased online sales.
For Housewares, the company expects net sales growth in the mid-single digits for fiscal 2019, while for the Health & Home segment net sales growth is anticipated in the low-single digits, with an unfavorable impact of about 2.5% from the average cough/cold/flu season assumption.
Helen of Troy said the year-over-year comparison of adjusted EPS is hit by the anticipated increase in investments to support the growth of the company’s Leadership Brands of 14% to 18% in fiscal 2019.