Helen Of Troy Cuts Outlook On Weak Retail Environment

Helen of Troy Ltd. 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.