The following is a summary of the Helen of Troy Limited (HELE) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Helen of Troy reported slightly above expectations in net sales, adjusted EPS, and adjusted EBITDA for Q2.

• Consolidated net sales decreased by 3.5%, largely due to declines in Beauty & Wellness, partially offset by gains in Home & Outdoor and international sales.

• Gross profit margin was 45.6%, a decrease of 110 basis points, primarily due to an unfavorable product and customer mix and increased inventory obsolescence expenses.

• Adjusted operating margin decreased mainly due to planned investment growth and additional distribution center expenses.

Business Progress:

• The integration of Curlsmith into the distribution network was completed ahead of schedule.

• The Tennessee distribution center improved its shipping execution and operating efficiency, addressing earlier technical issues.

• Helen of Troy grew their U.S. distribution by 9%, continuing to expand availability of their brands such as OXO, Hydro Flask, and Osprey.

• Notable product launches included OXO's Rapid Brewer coffee maker and Hydro Flask's travel bottle and new brand campaign.

Opportunities:

• The company continues to focus on expanding global sales, particularly highlighted by Hydro Flask's performance and international distribution gains.

• Helen of Troy sees potential growth in the Home & Outdoor segment, driven by distribution gains and strategic marketing initiatives.

• The Wellness segment outperformed expectations, benefiting from increased illness rates and consequently higher sales of thermometry products.

Risks:

• Beauty performance was below expectations due to competitive pressures and macroeconomic factors, prompting a strategic review and leadership changes to revitalize the brand.

• Projected net sales decline for FY25 reflects ongoing macro pressures and uncertainties, including a shorter holiday shopping season and variable retail replenishment.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.