Helen of Troy: Top and Bottom-Line Growth Support Share Price Gains

Helen of Troy

Helen of Troy Limited (NASDAQ:HELE) shares rallied 18% in the last three months to the highest level of $119 this week, buoyed by substantial growth in its top and bottom line numbers.

Helen of Troy
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Its stock price rally accelerated after topping revenue and earnings estimates for the first quarter by $20 million and $0.41 per share, a significant growth in earnings and revenue. HELE shares are currently trading at around $114 with a 52-week trading range of $81.10 – $119.25.

Helen of Troy First Quarter Results Optimized Traders Sentiments

Helen of Troy generated substantial financial growth in the first quarter. Its revenue rose 9% from the same period last year, while its core revenue growth was at 7% year-over-year. The company claims its strategy of investing in its infrastructure, leadership brands, and its employees have been contributing to its success in generating sustainable growth in revenues.

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Its revenue from its leadership brands enlarged 14.7%, and revenue from online sales grew 30% from last year.

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In addition to solid revenue growth, Helen of Troy has reported earnings per share growth of 32% from the same period in the previous year – which clearly indicates its management’s potential to convert robust revenue growth into big profits.

Its CEO Mr. Mininberg says, “The sweeter mix of our Leadership Brands, the timing of marketing spend, and further efficiencies generated from our shared services initiatives contributed to higher adjusted operating margins in all three of our business segments.”

Higher-than-expected Guidance Strengthens Future Fundamentals

Helen of Troy has increased its full-year guidance from prior estimates, thanks to strong first-quarter performance and rising demand for its health, home, and beauty products. The company now expects FY19 sales to hover in the range of $1.485B to $1.510B compared to the earlier estimate of $1.50B. On the whole, Helen of Troy share price is likely to receive support from its financial and operational performance this year.

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