Helen of Troy said sales in its Housewares segment, which includes Hydro Flask, rose 2.6 percent in the third quarter ended November 30, to $128.0 million. The gain reflected an increase in online channel sales, incremental distribution with existing customers, international growth, and new product introductions for both Hydro Flask and OXO brands.
The growth was partially offset by the unfavorable impact of lower store traffic and soft consumer spending at traditional brick and mortar retail, and the unfavorable comparative impact of strong sales into the club channel in the same period last year. Segment net sales also benefitted from the favorable impact of net foreign currency fluctuations of approximately $0.2 million, or 0.2 percent.
The segment’s growth rate slowed from the start of the year. In the six months, sales grew 11.8 percent. Overall sales in the segment were up 8.2 percent in the nine months.
GAAP operating margin in the segment was unchanged at 23.4 percent. Adjusted operating margin increased 0.5 percentage points primarily due to lower incentive compensation expense and the impact of increased operating leverage from net sales growth, partially offset by higher marketing, advertising and new product development expense.
Full results are HERE.
Photo courtesy of Hydro Flask
