Helen of Troy Limited (NASDAQ:HELE) Q1 2020 Earnings Conference Call Transcript

Jul 09, 2019 • 04:45 pm ET

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Helen of Troy Limited (NASDAQ:HELE) Q1 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day and welcome to the Helen Of Troy Limited First Quarter 2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jack Jancin, Senior Vice President of Corporate Business Development. You may begin.

Executive
Jack Jancin

Thank you operator, good afternoon everyone and welcome to Helen of Troy's first quarter fiscal 2020 earnings conference call. The agenda for the call this afternoon is as follows. I'll begin with a brief discussion of forward-looking statements. Mr. Julien Mininberg, the Company's CEO will comment on the financial performance of the quarter and specific progress on our strategic initiatives. Then Mr. Brian Grass, the Company's CFO will review the financials in more detail and comment on the Company's outlook for fiscal 2020. Following this Mr. Mininberg and Mr. Grass will take your questions you have for us today.

This conference call may contain certain forward-looking statements that are based on management's current expectation with respect to future events or financial performance. Generally, the words anticipates, believes, expects and other words similar are words identifying forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties that could cause anticipated results to differ materially from the actual results.

This conference call may also include information that may be considered non-GAAP financial information. These non-GAAP measures are not an alternative to GAAP financial information and may be calculated differently than the non-GAAP financial information disclosed by other companies.

The Company cautions listeners not to place undue reliance on forward-looking statements or non-GAAP information. Before I turn the call over to Mr. Mininberg I'd like to inform all interested parties that a copy of today's earnings release has been posted to the Investor Relations section of the company's website at www.helenoftroy.com. The earnings release contains tables that reconcile non-GAAP financial measures to their corresponding GAAP-based measures.

The release can be obtained by selecting the Investor Relations tab on the Company's homepage, and then the News tab.

I will now turn the conference call over to Mr. Mininberg.

Executive
Julien R. Mininberg

Thank you, Jack. Good afternoon everyone and thank you for joining us. This afternoon, we reported a great start to our fiscal year. Also, a great start to Phase II of our transformation plan, which we detailed during our May 21 Investor Day in New York.

Consolidated core business sales grew 6.8% and adjusted diluted EPS grew 10.2% in the quarter, both ahead of our expectations given the especially high year-ago base.

Sales growth was driven by our Leadership Brands, which grew 7.4%. Our continued focus and investments in innovation and marketing paid off handsomely. We gained further ground online with sales growing 28% now representing 23% of consolidated sales for the quarter. These operating results give us the fuel to further increase our spending behind attractive investment opportunities for the balance of the year, and also raise our revenue and EPS outlook for fiscal 2020. Before continuing my discussion on the quarter's results, I'd like to express my sincere