Helen of Troy Limited said Hydro Flask continued to see momentum in the first quarter with a strong response to its more colorful spring offerings.

Strength at the leader in insulated stainless steel food and beverage containers as well as OXO, the company’s cooking tools and housewares collection, led Helen of Troy’s Houseware segment to show a gain of 16.3 percent in the first quarter ended May 31. Revenues reached $98.4 million.

“Hydro Flask delivered another strong quarter of growth year-over-year,” said Helen of Troy’s CEO Julien Mininberg, on a conference call with analysts. “We continue to apply our efforts across all stages of the consumer shopping journey in the areas of awareness, engagement, availability and purchase.”

He added regarding Hydro Flask, “Our new spring season refresh continues to build excitement and results with new products, expanded color assortments, increased shelf and display space, new distribution games including international. This leadership brand continues to build on its number one share position in the United States, according to recent syndicated data within the outdoor and sporting goods market for water bottles.”

According to SSI Data, powered by SportsOneSource, Hydro Flask’s share for all beverage bottles increased 300 basis points to 29.3 percent versus the same time last year in the calendar, year-to-date period through the end of June in the SSI Data Measured market. The growth came despite Yeti adding 285 basis points to 14.9 percent share in the same period.

In insulated metal water bottles, Hydro Flask had a 52 percent share, up 310 basis points. In beverage containers, a new business for Hydro Flask, the brand’s share grew 560 basis points to 5.6 percent, according to SSI Data.

The 16.3 percent gain in the Housewares segment was driven by a 9.7 percent increase in core business net revenue, and a 7.3 percent contribution from acquisitions. The core business increase reflected growth for both Hydro Flask and OXO brands, with strong online channel sales, growth in bath, infant and kitchen organization categories and expanded international distribution, partially offset by lower promotional programs in the club channel and a reduction in the kitchen electronics product line offerings.

The Housewares segment growth from acquisitions represented an incremental half-month of operating results from Hydro Flask versus to the same period last year. Hydro Flask was acquired on March 18, 2016 for $209.3 million. Segment net sales in the quarter were negatively impacted by approximately 0.6 percent from foreign currency fluctuations.

GAAP operating margin in the Housewares segment was 18.4 percent compared to 18.3 percent. Adjusted operating margin decreased 0.2 percentage points primarily due to higher marketing, advertising and new product development expense, and the unfavorable impact of foreign currency fluctuations.

In the Q&A session, Mininberg noted that a major part of the Helen of Troy’s incremental spend of $28 million for the current year will support Hydro Flask’s growth initiatives.

“Things like new advertising campaigns, a lot of new web content across the board not just in Hydro Flask but in tons of other others,” said Mininberg. “And that digital marketing content is fueling some of that 30 percent growth in the online channel or the e-commerce world where it’s so important to have the right videos, the right messages, the right ads, the right defensive ads in some cases.”

Companywide, consolidated sales increased 3.4 percent, driven by a core business increase of 2.2 percent and growth from acquisitions of 1.8 percent, partially offset by a decline of 0.6 percent from foreign currency fluctuations

Net earnings dropped to $5.9 million, or 22 cents a share, from $19 million, or 68 cents, a year ago. The latest quarter includes asset impairment charges of $23.1 million compared to $5.1 million for the same period last year. Excluding the non-recurring charges, EPS would have been $1.37 compared to $1.27 in the same period last year.

Helen of Troy’s other core brands include Braun, Honeywell, PUR, Vicks and Hot Tools.

Photo courtesy Hydro Flask