Market Overview

Helen Of Troy Stock Inches Higher After WSJ Report Of Potential Asset Sale

Helen Of Troy Stock Inches Higher After WSJ Report Of Potential Asset Sale

Helen of Troy Limited (NASDAQ: HELE), a designer of consumer brand-name products, is looking to sell some of its brands, including Revlon hair products and Pert shampoo, according to The Wall Street Journal. Shares of Helen of Troy were trading higher by 0.69 percent at the time of publication Monday. 

What Happened

Helen of Troy is seeking to sell its beauty business for around $300 million so it can better focus on the faster-growing houseware and health businesses, sources close to the matter told WSJ. A company spokeswoman didn't comment on the potential divestiture, but told WSJ the company always "evaluates the business portfolio with the goal of maximizing our assets."

The company's beauty business saw its full-year sales fall from $435 million in 2015 to $356 million in 2018, WSJ said. Consumers appear to be moving up to higher-end and niche brands instead of the Helen of Troy brands that are found mostly at discount retailers and drugstores.

Why It's Important

Consumers are also shopping for beauty products with natural ingredients and pricier cosmetics, WSJ said; Helen of Troy's exposure to the discount retail and drugstore channels implies its sales may continue to suffer.

The beauty business is Helen of Troy's smallest segment and could see interest from private-equity firms.

What's Next

Helen of Troy isn't the only company looking to find a buyer for its beauty products. Nestle SA is also looking to sell its skin care unit. Bayer AG is also looking to sell its foot care business and Coppertone sunscreen brand.

Related Links:

Analysts: Estée Lauder's Strength Isn't Just Cosmetic

The Beauty Sector: Morgan Stanley Turns Bullish On Estee Lauder, Coty


Related Articles (HELE)

View Comments and Join the Discussion!

Posted-In: Beauty drugstores retail WSJNews Rumors Asset Sales Media Best of Benzinga