Helen of Troy Ltd.’s net beauty sales increased almost 1 percent for fiscal 2016, to $439.2 million.
For the fourth quarter of the fiscal year, beauty sales decreased 0.3 percent, to $98.7 million from $99 million, impacted by about $2 million from foreign currency fluctuations. Helen of Troy said that gains from new product introductions were partially offset by a decline in personal care, which was hurt by competition and lost distribution. For 2017, Helen of Troy is forecasting a decline in its foot-care category because of competition and high inventory in the channel.
For the full year, beauty sales at the company were up 0.9 percent from $435.2 million the prior year. “We continue to see signs of stabilization in our beauty segment, which achieved net sales slightly below the prior year period primarily due to the negative impact of foreign currency fluctuations and declines in the personal care category, partially offset by the benefits from new product introductions,” said chief executive officer Julien Mininberg. “While we have more work to do in our efforts to stabilize our beauty business, I am encouraged that we achieved sales growth of 0.9 percent in that segment on a full year basis.”
Outside of beauty, Helen of Troy sells housewares, health and home products as well as nutritional supplements. As a whole, the company grew net sales for the quarter by 2.1 percent, to $385.7 million from $377.7 million in the prior-year period. The business had net income of $9.6 million, with diluted earnings per share of $0.34. For the full year, net sales increased 7 percent to $1.55 billion, from $1.45 billion for the prior fiscal year.
For fiscal 2017, Helen of Troy expects consolidated net sales revenue between $1.57 billion to $1.62 billion, implying sales growth between 1.6 percent and 4.8 percent, with core business sales growth between -2.3 percent and 0.6 percent. The company is forecasting diluted earnings per share of $4.60 to $5 for the year.