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

Jul 09, 2019 • 04:45 pm ET

Previous

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

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

Thank you. (Operator Instructions) We'll go first to Frank Camma with Sidoti.

Analyst
Frank Camma

Hi, good afternoon guys.

Executive
Brian L. Grass

Yeah. Hey, Frank. How you're doing?

Analyst
Frank Camma

Good, thanks for taking the question. Hey, a couple of things, can you start -- I know you gave some color on this, but can you talk a little bit more about the cadence of the quarter, given the size of the beat here. I mean obviously you called out Housewares and Beauty and it sounds like it was really back-end weighted, was that replenishments, was that new distribution? Can you go a little bit more into that by segment?

Executive
Brian L. Grass

Sure. I think there is -- while we don't expect 23% growth in that segment on an ongoing basis, I would say there is not a lot of unusual things driving sales there. It's being driven by strong demand for both Hydro Flask and OXO products and solid distribution but not what I would call a lot of pipeline filled. It's really mostly being driven by demand, and maybe it's a little bit lumpy based on the timing of some of the programs that's going on at the retailers. But, I would call nothing incredibly unusual, and you're right, it was concentrated more in the back half of the quarter, which is why--

Analyst
Frank Camma

And there is no club channel either. It sounded more or less, I should say?

Executive
Brian L. Grass

Less. There was club channel in both periods, but less in the first quarter of this year compared to the same quarter last year.

Executive
Julien R. Mininberg

So that leaveas the high (inaudible) .

Analyst
Frank Camma

Okay.

Executive
Julien R. Mininberg

So as far as (multilple speakers) (inaudible)

Analyst
Frank Camma

Go ahead, I'm sorry, go ahead.

Executive
Julien R. Mininberg

But then -- I apologize, Juli\en here and I'm sorry to interrupt either of you. I want to say also that it in the Beauty segment, we just really had very strong demand in the appliances and as product came in, especially late in the quarter as Brian mentioned, even in the last few weeks, a lot of product went out the door to meet pent-up demand. So this is not inventory or pipeline. This is just pur sell-through filling in suction from the market for some really good products and those innovations are drawing that viral stuff that you heard me talk about in the prepared remarks. and the result it's not just a big beat but surprised us, especially in the back half of the quarter.

Analyst
Frank Camma

Well, Beauty makes sense because you had success in the first -- in the last quarter. So I kind of see kind of a pull-through on that. But your numbers, your guidance for Housewares for the balance of the year would suggest no matter how you look at it, a huge deceleration in revenue growth. So, can you explain like how that works through your system?

Executive
Julien R. Mininberg

You mean versus the big number that was just presented?

Analyst
Frank Camma

Yeah, I mean your 23%.

Executive
Julien R. Mininberg

That's an increase for the year.

Analyst
Frank Camma

Well, yeah, no, I get that, it's an increase in the