Helen of Troy Limited (NASDAQ:HELE) Q1 2020 Earnings Conference Call Transcript
Jul 09, 2019 • 04:45 pm ET
Julien R. Mininberg
appreciation for those of you who attended or listened to our Investor Day.
In addition, to presenting our Phase II plans, we introduced you to some of the outstanding leaders in our Company, shared our long-term financial goals for Phase II and gave you a flavor of the culture and level of engagement that our people bring to work every day. We believe their passionate commitment powers Helen of Troy and is a key driver of success as our Phase II plans come to life.
As outlined during Investor Day, Phase II to builds on the accomplishments of Phase I by focusing on eight key strategic priorities. These are investing in Leadership Brands, doubling down on international, selective and strategic M&A, consumer-centric, unifying and elevating the best people, accelerating shared service excellence, maximizing operating efficiency and optimizing capital deployment.
Since deploying these strategies internally nine months ago, we have been implementing them to bring next level capabilities to our organization and pursue new growth opportunities for our leadership brands. OXO, Hydro Flask, Vicks, Braun, Honeywell, PUR and Hot Tools comprised approximately 80% of our net sales and an even higher proportion of our operating profit. They sweeten our mix as we continue to grow them.
The Innovation Showcase section of Investor Day revealed important new product launches and highlighted the skill and creativity of our consumer-centric engineers, leaders and our sales and marketing organizations. They worked tirelessly to match consumer insights and trends to new technologies and differentiated timeless designs. For us delighting end-consumers with branded solutions they love and trust is a healthy obsession. Again, thank you to everyone who joined us during Investor Day.
Now, I'd like to turn to review of our business segments in this quarter. Sales growth was led by our Housewares segment, which increased core business net sales by 23.8% with growth across both brands, outstanding. OXO saw a strong growth, a key brick-and-mortar retailers as we gained distribution, benefited from solid POS and improved store traffic at key retailers. New product introductions contributed to OXO's growth as both retailers and consumers responded well to new launches. Further investment in OXO's equity in store, and e-commerce and via digital marketing were also key drivers. The Food Storage and Kitchen Organization categories were particularly strong and on-trend with the rising popularity of organizational gurus that focused on de-cluttering and household Organization.
For Hydro Flask another outstanding quarter, the brand's strong equity and popularity continue to grow with outdoor enthusiasts and retailers alike. It continues to expand its number one market share position and reinforced its role as a key contributor to category growth for high-performance insulated hydration vessels. The brand made terrific strides with retailers and consumers on the East Coast of the United States, especially in the Northeast where we further expanded Hydro Flask offerings in brick-and-mortar, broadened placement on the shelf and expanded the selection of on-trend and trend setting items.
We are seeing strong point-of-sale results and inventory replenishment orders in-line with