Helen of Troy Limited (NASDAQ:HELE) stock rose 1.59% (As on January 9, 11:16:32 AM UTC-4, Source: Google Finance) after the company posted better than expected returns for the third quarter of FY 24. Consolidated gross profit margin increased 210 basis points to 48.0%, compared to 45.9%. The increase in consolidated gross profit margin was primarily due to lower inbound freight costs, the favorable impact of SKU rationalization efforts in Beauty & Wellness, and a more favorable customer mix within Home & Outdoor. These factors were partially offset by a less favorable product mix within Beauty & Wellness. Consolidated operating income was $106.9 million, or 19.5% of net sales revenue, compared to $77.2 million, or 13.8% of net sales revenue. The 570 basis point increase in consolidated operating margin was primarily due to a gain on the sale of distribution and office facilities in El Paso, Texas of $34.2 million, lower inbound and outbound freight costs, a decrease in restructuring charges of $6.6 million, lower salary and wage costs primarily as a result of Project Pegasus role reductions, the favorable comparative impact of EPA compliance costs of $2.1 million incurred in the prior year period, the favorable impact of SKU rationalization efforts in Beauty & Wellness, and a more favorable customer mix within Home & Outdoor.

HELE in the third quarter of FY 24 has reported the adjusted earnings per share of $2.79, beating the analysts’ estimates for the adjusted earnings per share of $2.75. The company had reported 1.6 percent decline in the adjusted revenue growth to $549.6 million in the third quarter of FY 24, beating the analysts’ estimates for revenue of $541.87 million. This is primarily driven by a decrease from Organic business of $13.6 million, or 2.4%. The decline in Organic business was primarily due to a decline in sales of hair appliance, humidification and air filtration products in Beauty & Wellness driven by softer consumer demand, later start to the illness season, and SKU rationalization efforts. Net sales revenue was also impacted by a decline in brick and mortar sales in the insulated beverageware category in Home & Outdoor. These factors were partially offset by an increase in consolidated online channel sales, stronger consumer demand for products in the home and travel categories in Home & Outdoor, and higher sales of thermometry, heaters, and water filtration products in Beauty & Wellness.

Helen of Troy Ltd sees FY 2024 EPS to be in the range of $8.60-$8.85 versus the analyst consensus of $8.75. Helen of Troy Ltd sees FY 2024 revenue to be in the range of $1.97B-$2.00B versus the analyst consensus of $1.99B.