Helen Of Troy Cuts Outlook On Weak Retail Environment
Helen of Troy Ltd. (NASDAQ: HELE) shares fell sharply in the extended session after the company slashed its earnings outlook citing recent weakness in retailing.
Chief Executive Julien R. Mininberg said a multi-year downward trend "has accelerated recently" in the company's personal care segment. Strategies to improve that segment "will take some time to have a significant impact."
The El Paso, Texas-based company, which distributes housewares as well as personal and health products, cut its fiscal 2015 outlook to $3.70 to $3.80 a share, from $4.30 to $4.40. Wall Street expected earnings of $4.43 a share.
The company forecast 2015 sales, excluding a recent acquisition, of $1.28 billion to $1.3 billion, versus the consensus analysts' expectation of $1.39 billion.
Including results of its recently acquired Healthy Directions unit, the company expects adjusted earnings of $3.90 to $4.04 a share on sales of $1.38 billion to $1.4 billion.
For the fiscal second quarter the company expects earnings excluding Healthy Directions of $0.58 to $0.61 a share, on sales of $291 to $294 million. Consolidated income will range from $0.64 to $0.69 a share in the second period.
Wall Street expects earnings in the current quarter of $0.85 a share on sales of $317.55 million.
Helen of Troy changed hands recently at $53.01, down 10.3 percent.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.