Document

展品99.1

海伦特洛伊家电有限公司报告2025财年第二季度业绩

综合净销售额下降3.5%

摊薄后每股收益为0.74美元；调整后摊薄后每股收益为1.21美元

经营活动现金流量为4460万美元；增加了790万美元

自由现金流(1)(2) 自由现金流为3970万美元; 增加了1170万美元

2025财年展望：

保持1.885-19.35亿美元的综合净销售额

维持摊薄后每股收益介于$4.69至$5.45，并调整后摊薄后每股收益介于$7.00至$7.50

维持调整后的EBITDA为$287-$29700万

更新自由现金流(1)(2) 到180-20000万美元

更新净杠杆比率(1)(3) 到2025财年底将减少至1.9倍至1.8倍

佩加索斯项目有望实现2.6亿到3亿美元的节省。

2024年10月9日，德克萨斯州埃尔帕索市— 海伦特洛伊家电有限公司 (纳斯达克股票代码: HELE)，致力于设计、开发和全球销售品牌消费性家庭、户外、美容和健康产品，今天报告了截至2024年8月31日的三个月的业绩。

财务年度2025年第二季度执行摘要与2024年财年相比

•营业收入47420万美元，减少了3.5%

•毛利润率为45.6%，相比46.7%

•7.3%的营业利润率相较于9.5%

•非通用会计调整后的营业利润率为9.8%，相比之下为12.7%

•摊薄后每股收益为0.74美元，相比之下为1.14美元

•非依照普通会计准则调整后的摊薄后每股收益为1.21美元，相比之下为1.74美元

•经营活动产生的现金净额为4,460万美元，相比3670万美元

•非GAAP调整后的EBITDA利润率为11.8%，相比之下为14.6%

首席执行官诺埃尔·G表示：“我们很高兴地宣布第二季度的业绩超出预期，我们重申年度净销售额、调整后EPS和调整后EBITDA的展望。在这一季度，我们采取了决定性举授，助推我们的长期战略计划，包括加强核心业务和进一步塑造增长组合。此外，尽管宏观环境仍持续面临不利因素，我们在努力‘重置和重振’业务方面取得了早期成果，得益于品牌基本面的改善、营销和创新的优化，以及渠道拓展。我为我们的团队的奉献和专注感到骄傲，并且坚信我们正走在通往长期盈利增长和为所有海伦特洛伊家电持有人增加价值的正确道路上。”


	截至8月31日的三个月
(以千为单位)（未经审计）	家居与户外			美容与健康			总费用
2024财年销售收入，净额	$	239,977		$	251,586		$	491,563
有机业务 (4)	2,064			(18,899)			(16,835)
外汇货币影响	(97)			(410)			(507)

营业收入净变动	1,967			(19,309)			(17,342)
2025财政年度营业收入净额	$	241,944		$	232,277		$	474,221

总净营业收入增长（下降）	0.8		%	(7.7)		%	(3.5)		%
有机业务	0.9		%	(7.5)		%	(3.4)		%
外币影响	—		%	(0.2)		%	(0.1)		%


营业利润率（GAAP）
订阅和支持收入范围为1.77亿至1.8亿美元，中点增长率为10％，相对于2024财政年度；	12.9		%	1.6		%	7.3		%
2024财年	15.0		%	4.3		%	9.5		%
调整后的营业利润率（非GAAP）（1）
订阅和支持收入范围为1.77亿至1.8亿美元，中点增长率为10％，相对于2024财政年度；	15.0		%	4.4		%	9.8		%
2024财年	17.7		%	7.9		%	12.7		%

合并结果-2025财年第二季度与2024财年第二季度对比

•综合净销售收入下降了1730万美元，或3.5%，至47420万美元，相较于49160万美元，主要是由于美容和健康低销售额导致，包括吹风机、空气净化器和加湿器销量下降。这些因素部分被家居和户外类别中的增长抵消，包括国际增长以及美容和健康类别内风扇和温度计销量增加。

•合并毛利润率下降110个基点至45.6%，相较于46.7%。合并毛利润率下降主要是由于家居和户外部门的产品和客户组合不利以及年度存货过时费用增加所致。这些因素在一定程度上被商品和产品成本的降低部分抵消，部分受Pegasus项目的推动。

•综合销售、一般及管理费用（SG&A）比率增加了140个基点，达到37.9%，而上年为36.5%。综合SG&A比率的增加主要是由于较高的营销费用，公司重新投资于其品牌，不利的配送中心费用，由于额外成本和田纳西州配送中心自动化启动问题导致的效率降低，以及不利的营运杠杆影响。这些因素部分抵消了总体人员费用的降低，其中包括较低的年度激励补偿费用的影响。

•综合营业收入为3490万美元，相当于净销售总收入的7.3%，相比之下4680万美元，相当于净销售总收入的9.5%。综合营业利润率下降了220基点，主要是由于综合SG&A比例增加以及综合毛利润率下降，部分抵消了重组费用减少210万美元。

•利息支出为1320万美元，与1370万美元相比。利息支出减少主要是由于未偿还的平均借款减少，部分抵消了与去年同期相比的较高平均有效利率。

•所得税费用占所得税前收入的比例为22.0%，相比17.9%增加，主要是由于巴巴多斯税法在第一季度实施的影响。

2025财政年度，在各税收司法管辖区收入结构的转变，以及离散项目税费的增加。

•净利润为1700万美元，相比2740万美元。摊薄后每股收益为0.74美元，相比1.14美元。摊薄后每股收益主要下降是由于较低的营业收入和有效所得税率的增加，部分抵消了较低的加权平均摊薄后股份和利息支出的减少。

•非普通会计净息税折旧及摊销前收益（EBITDA）为5580万美元，相比7170万美元。非GAAP调整后的EBITDA利润率为11.8%，相比14.6%。

在调整后的基础上（非GAAP）, 对于 fiscal 2025 年和 2024 年的第二季度进行调整，不包括重组费用的离散影响、无形资产的摊销以及非现金股份报酬，如适用：

•经过调整的营业收入下降了1590万美元，或25.5%，至4640万美元，占净销售收入的9.8%，而不是6230万美元，占净销售收入的12.7%。调整后的营业利润率下降主要是由更高的营销费用、Home & Outdoor 部门内产品和客户组合不利变化、年底不利的库存过时费用以及不利的营运杠杆等因素推动的。这些因素在一定程度上被整体人员开支降低部分抵消，其中包括较低的年度激励补偿费用的影响，以及商品和产品成本的降低，部分受到“飞马计划”倡议的推动。

•调整后的收入下降了1420万美元，或34.1%，至2750万美元，而4180万美元相比。摊薄后每股收益下降了30.5%，至1.21美元，而1.74美元相比。调整后每股收益下降主要是由于调整后营业收入降低和调整后有效所得税率增加，部分抵消了摊薄后加权平均流通股份减少和利息费用下降。

Segment Results - Second Quarter Fiscal 2025 Compared to Second Quarter Fiscal 2024

Home & Outdoor net sales revenue increased $2.0 million, or 0.8%, to $241.9 million, compared to $240.0 million. The increase was driven by an increase in sales in the insulated beverageware category, higher international sales primarily driven by new and expanded retailer distribution, and expanded retailer distribution in the home category. These factors were partially offset by softer consumer demand, lower replenishment orders from retail customers, and continued softness in technical packs and related accessories.

Home & Outdoor operating income was $31.2 million, or 12.9% of segment net sales revenue, compared to $36.1 million, or 15.0% of segment net sales revenue. The decrease in segment operating margin was primarily due to unfavorable distribution center expense, a less favorable product and customer mix, and higher marketing expense as the segment reinvested back into its brands. These factors were partially offset by lower overall personnel expense, which includes the impact of lower annual incentive compensation expense, and favorable inventory obsolescence expense year-over-year. Adjusted operating income decreased 14.5% to $36.3 million, or 15.0% of segment net sales revenue, compared to $42.4 million, or 17.7% of segment net sales revenue.

Beauty & Wellness net sales revenue decreased $19.3 million, or 7.7%, to $232.3 million, compared to $251.6 million. The decrease was driven by a decline in sales of hair appliances due to softer consumer demand, shifts in consumer spending and increased competition, lower sales of air purifiers and humidifiers driven by reduced replenishment orders from retail customers, and a decrease in water

filtration product revenue due to the expiration of an out-license relationship. These factors were partially offset by fan and thermometer growth.

Beauty & Wellness operating income was $3.7 million, or 1.6% of segment net sales revenue, compared to $10.7 million, or 4.3% of segment net sales revenue. The decrease in segment operating margin was primarily due to higher marketing expense as the segment reinvested back into its brands, unfavorable inventory obsolescence expense year-over-year, and the impact of unfavorable operating leverage. These factors were partially offset by lower commodity and product costs and lower overall personnel expense, which includes the impact of lower annual incentive compensation expense. Adjusted operating income decreased 48.9% to $10.2 million, or 4.4% of segment net sales revenue, compared to $19.9 million, or 7.9% of segment net sales revenue.

Balance Sheet and Cash Flow - Second Quarter Fiscal 2025 Compared to Second Quarter Fiscal 2024

•Cash and cash equivalents totaled $20.1 million, compared to $24.2 million.

•Accounts receivable turnover(5) was 69.0 days, compared to 67.9 days.

•Inventory was $469.6 million, compared to $435.7 million.

•Total short- and long-term debt was $713.2 million, compared to $844.9 million.

•Net cash provided by operating activities for the first six months of the fiscal year was $69.9 million, compared to $157.7 million for the same period last year.

•Free cash flow(1)(2) for the first six months of the fiscal year was $55.9 million, compared to $137.2 million for the same period last year.

Pegasus Restructuring Plan

The Company previously announced a global restructuring plan intended to expand operating margins through initiatives designed to improve efficiency and effectiveness and reduce costs (collectively referred to as “Project Pegasus”). Project Pegasus includes multiple workstreams to further optimize the Company's brand portfolio, streamline and simplify the organization, accelerate and amplify cost of goods savings projects, enhance the efficiency of its supply chain network, optimize its indirect spending and improve its cash flow and working capital, as well as other activities. The Company anticipates these initiatives will create operating efficiencies, as well as provide a platform to fund future growth investments.

As previously disclosed, the Company continues to have the following expectations regarding Project Pegasus charges:

•Total one-time pre-tax restructuring charges of approximately $50 million to $55 million over the duration of the plan, expected to be completed during fiscal 2025.

•Pre-tax restructuring charges to be comprised of approximately $15 million to $19 million of severance and employee related costs, $28 million of professional fees, $3 million to $4 million of contract termination costs, and $4 million of other exit and disposal costs.

•All of the Company's operating segments and shared services will be impacted by the plan and pre-tax restructuring charges include approximately $16 million to $17 million in Home & Outdoor and $34 million to $38 million in Beauty & Wellness.

•Pre-tax restructuring charges represent primarily cash expenditures, which are expected to be substantially paid by the end of fiscal 2025.

The Company also continues to have the following expectations regarding Project Pegasus savings:

•Targeted annualized pre-tax operating profit improvements of approximately $75 million to $85 million, which began in fiscal 2024 and are expected to be substantially achieved by the end of fiscal 2027.

•Estimated cadence of the recognition of the savings will be approximately 25% in fiscal 2024, which was achieved, approximately 35% in fiscal 2025, approximately 25% in fiscal 2026, and approximately 15% in fiscal 2027.

•Total profit improvements to be realized approximately 60% through reduced cost of goods sold and 40% through lower SG&A.

Fiscal 2025 Annual Outlook

The Company continues to expect consolidated net sales revenue in the range of $1.885 billion to $1.935 billion, which implies a decline of 6.0% to 3.5%. The sales outlook continues to reflect the Company's view of lingering inflation and continued consumer spending softness, especially in certain discretionary categories, as well as its view of increased macro uncertainty, an increasingly stretched consumer, a more promotional environment, and retailers even more closely managing their inventory levels. The sales outlook reflects the impact of executional challenges in the Company's Tennessee distribution facility on sales that occurred during the first quarter of fiscal 2025. During the second quarter of fiscal 2025, the remediation efforts for the automation system were substantially completed, and the Company believes the impact on sales was minimal during the quarter. The Company now believes it is in a position to achieve targeted efficiency levels by the end of fiscal 2025.

The Company's fiscal year net sales outlook now reflects the following expectations by segment:

•Home & Outdoor net sales decline of 2.3% to growth of 1.4%, which includes the impact of shipping disruption in the Company's Tennessee distribution facility during the first quarter of fiscal 2025, compared to the prior expectation of a decline of 3.0% to 1.0%; and

•Beauty & Wellness net sales decline of 9.0% to 7.5%, compared to the prior expectation of a decline of 8.0% to 5.0%, both of which include a year-over-year headwind of approximately 1.0% related to the expiration of an out-license relationship in Wellness.

The Company continues to expect GAAP diluted EPS of $4.69 to $5.45 and non-GAAP adjusted diluted EPS in the range of $7.00 to $7.50, which implies an adjusted diluted EPS decline of 21.4% to 15.8%.

The Company continues to expect adjusted EBITDA of $287 million to $297 million, which implies a decline of 14.6% to 11.8%, as benefits from Project Pegasus are reinvested for growth. The Company's outlook continues to reflect:

•a year-over-year increase in growth investment spending of approximately 100 basis points;

•a year-over-year headwind of approximately 50 basis points from the expiration of an out-license relationship in Wellness;

•margin compression of approximately 50 basis points from incremental operating expense and lost efficiency related to automation startup issues at its Tennessee distribution facility, compared to the prior expectation of 60 basis points; and

•margin compression from its view of a more promotional environment, a less favorable mix, and lower operating leverage due to the decline in revenue.

The Company continues to expect these factors to be partially offset by profit improvement actions implemented in the second quarter.

The Company now expects free cash flow(1)(2) in the range of $180 million to $200 million, compared to the previous range of $200 million to $240 million, and now expects its net leverage ratio(1)(3), as defined in its credit agreement, to end fiscal 2025 at 1.90x to 1.80x, compared to the previous range of 1.60x to 1.50x.

In terms of the quarterly cadence of sales, the Company now expects a decline in net sales of approximately 4.5% to 1% in the third quarter of fiscal 2025. The Company now expects a decline in adjusted diluted EPS of approximately 10% to 3% in the third quarter of fiscal 2025.

The Company's consolidated net sales and EPS outlook also reflects the following assumptions:

•the severity of the cough/cold/flu season will be in line with pre-COVID historical averages;

•September 2024 foreign currency exchange rates will remain constant for the remainder of the fiscal year;

•expected interest expense in the range of $44.0 million to $46.0 million;

•a reported GAAP effective tax rate range of 27.3% to 29.5% for the full fiscal year 2025 and an adjusted effective tax rate range of 20.7% to 21.3%; and

•an estimated weighted average diluted shares outstanding of 23.1 million for the full year.

The likelihood, timing and potential impact of a significant or prolonged recession, any fiscal 2025 acquisitions and divestitures, future asset impairment charges, future foreign currency fluctuations, additional interest rate increases, or share repurchases are unknown and cannot be reasonably estimated; therefore, they are not included in the Company's outlook.

Conference Call and Webcast

The Company will conduct a teleconference in conjunction with today's earnings release. The teleconference begins at 9:00 a.m. Eastern Time today, Wednesday, October 9, 2024. Institutional investors and analysts interested in participating in the call are invited to dial (877) 407-3982 approximately ten minutes prior to the start of the call. The conference call will also be webcast live on the Events & Presentations page at: http://investor.helenoftroy.com/. A telephone replay of this call will be available at 1:00 p.m. Eastern Time on October 9, 2024, until 11:59 p.m. Eastern Time on October 23, 2024, and can be accessed by dialing (844) 512-2921 and entering replay pin number 13748178. A replay of the webcast will remain available on the website for one year.

Non-GAAP Financial Measures

The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States of America (“GAAP”). To supplement its presentation, the Company discloses certain financial measures that may be considered non-GAAP such as Adjusted Operating Income, Adjusted Operating Margin, Adjusted Effective Tax Rate, Adjusted Income, Adjusted Diluted Earnings per Share (“EPS”), EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Net Leverage Ratio, which are presented in accompanying tables to this press release along with a reconciliation of these financial measures to their corresponding GAAP-based financial measures presented in the Company's condensed consolidated statements of income and cash flows. For additional information see Note 1 to the accompanying tables to this press release.

About Helen of Troy Limited

Helen of Troy Limited (NASDAQ: HELE) is a leading global consumer products company offering creative products and solutions for its customers through a diversified portfolio of well-recognized and widely-trusted brands, including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith, and Revlon. All trademarks herein belong to Helen of Troy Limited (or its subsidiaries) and/or are used under license from their respective licensors.

For more information about Helen of Troy, please visit http://investor.helenoftroy.com

Forward-Looking Statements

Certain written and oral statements made by the Company and subsidiaries of the Company may constitute “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. This includes statements made in this press release, in other filings with the SEC, and in certain other oral and written presentations. Generally, the words “anticipates”, “assumes”, “believes”, “expects”, “plans”, “may”, “will”, “might”, “would”, “should”, “seeks”, “estimates”, “project”, “predict”, “potential”, “currently”, “continue”, “intends”, “outlook”, “forecasts”, “targets”, “reflects”, “could”, and other similar words identify forward-looking statements. All statements that address operating results, events or developments that the Company expects or anticipates may occur in the future, including statements related to sales, expenses, EPS results, and statements expressing general expectations about future operating results, are forward-looking statements and are based upon its current expectations and various assumptions. The Company believes there is a reasonable basis for these expectations and assumptions, but there can be no assurance that the Company will realize these expectations or that these assumptions will prove correct. Forward-looking statements are only as of the date they are made and are subject to risks that could cause them to differ materially from actual results. Accordingly, the Company cautions readers not to place undue reliance on forward-looking statements. The forward-looking statements contained in this press release should be read in conjunction with, and are subject to and qualified by, the risks described in the Company's Form 10-K for the year ended February 29, 2024, and in the Company's other filings with the SEC. Investors are urged to refer to the risk factors referred to above for a description of these risks. Such risks include, among others, the geographic concentration of certain United States (“U.S.”) distribution facilities which increases its risk to disruptions that could affect the Company's ability to deliver products in a timely manner, the occurrence of cyber incidents or failure by the Company or its third-party service providers to maintain cybersecurity and the integrity of confidential internal or customer data, a cybersecurity breach, obsolescence or interruptions in the operation of the Company's central global Enterprise Resource Planning systems and other peripheral information systems, the Company's ability to develop and introduce a continuing stream of innovative new products to meet changing consumer preferences, actions taken by large customers that may adversely affect the Company's gross profit and operating results, the Company's dependence on sales to several large customers and the risks associated with any loss of, or substantial decline in, sales to top customers, the Company's dependence on third-party manufacturers, most of which are located in Asia, and any inability to obtain products from such manufacturers, the Company's ability to deliver products to its customers in a timely manner and according to their fulfillment standards, the risks associated with trade barriers, exchange controls, expropriations, and other risks associated with domestic and foreign operations including uncertainty and business interruptions resulting from political changes and events in the U.S. and abroad, and volatility in the global credit and financial markets and economy, the Company's dependence on the strength of retail economies and vulnerabilities to any prolonged economic downturn, including a downturn from the effects of macroeconomic conditions, any public health crises or similar conditions, risks associated with weather conditions, the duration and severity of the cold and flu season and other related factors, the Company's reliance on its Chief Executive Officer and a limited number of other key senior officers to operate its business, risks associated with the use of licensed trademarks from or to third parties, the Company's ability to execute and realize expected synergies from strategic business initiatives such as acquisitions, divestitures and global restructuring plans, including Project

Pegasus, the risks of potential changes in laws and regulations, including environmental, employment and health and safety and tax laws, and the costs and complexities of compliance with such laws, the risks associated with increased focus and expectations on climate change and other environmental, social and governance matters, the risks associated with significant changes in or the Company's compliance with regulations, interpretations or product certification requirements, the risks associated with global legal developments regarding privacy and data security that could result in changes to its business practices, penalties, increased cost of operations, or otherwise harm the business, the risks of significant tariffs or other restrictions being placed on imports from China, Mexico or Vietnam or any retaliatory trade measures taken by China, Mexico or Vietnam, the Company's dependence on whether it is classified as a “controlled foreign corporation” for U.S. federal income tax purposes which impacts the tax treatment of its non-U.S. income, the risks associated with legislation enacted in Bermuda and Barbados in response to the European Union's review of harmful tax competition, the risks associated with accounting for tax positions and the resolution of tax disputes, the risks associated with product recalls, product liability and other claims against the Company, and associated financial risks including but not limited to, increased costs of raw materials, energy and transportation, significant impairment of the Company's goodwill, indefinite-lived and definite-lived intangible assets or other long-lived assets, risks associated with foreign currency exchange rate fluctuations, the risks to the Company's liquidity or cost of capital which may be materially adversely affected by constraints or changes in the capital and credit markets, interest rates and limitations under its financing arrangements, and projections of product demand, sales and net income, which are highly subjective in nature, and from which future sales and net income could vary by a material amount. The Company undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.


Investor Contact:
Helen of Troy Limited
Anne Rakunas, Director, External Communications
(915) 225-4841

ICR, Inc.
Allison Malkin, Partner
(203) 682-8200

HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(Unaudited) (in thousands, except per share data)


	Three Months Ended August 31,
	2024				2023
Sales revenue, net	$	474,221	100.0	%	$	491,563	100.0	%
Cost of goods sold	258,151		54.4	%	261,910		53.3	%
Gross profit	216,070		45.6	%	229,653		46.7	%
Selling, general and administrative expense (“SG&A”)	179,692		37.9	%	179,191		36.5	%
Restructuring charges	1,526		0.3	%	3,617		0.7	%
Operating income	34,852		7.3	%	46,845		9.5	%
Non-operating income, net	170		—	%	148		—	%
Interest expense	13,216		2.8	%	13,654		2.8	%
Income before income tax	21,806		4.6	%	33,339		6.8	%
Income tax expense	4,792		1.0	%	5,958		1.2	%


Net income	$	17,014	3.6	%	$	27,381	5.6	%

Diluted earnings per share (“EPS”)	$	0.74			$	1.14



Weighted average shares of common stock used in computing diluted EPS	22,839				24,041


	Six Months Ended August 31,
	2024				2023
Sales revenue, net	$	891,068	100.0	%	$	966,235	100.0	%
Cost of goods sold	471,919		53.0	%	520,951		53.9	%
Gross profit	419,149		47.0	%	445,284		46.1	%
SG&A	350,173		39.3	%	346,826		35.9	%

Restructuring charges	3,361		0.4	%	10,972		1.1	%
Operating income	65,615		7.4	%	87,486		9.1	%
Non-operating income, net	270		—	%	285		—	%
Interest expense	25,759		2.9	%	27,706		2.9	%
Income before income tax	40,126		4.5	%	60,065		6.2	%
Income tax expense	16,908		1.9	%	10,103		1.0	%


Net income	$	23,218	2.6	%	$	49,962	5.2	%

Diluted EPS	$	1.00			$	2.07



Weighted average shares of common stock used in computing diluted EPS	23,236				24,088

Consolidated Net Sales by Geographic Region (6)

(Unaudited) (in thousands)


	Three Months Ended August 31,
	2024				2023
Domestic sales revenue, net	$	365,750	77.1	%	$	388,049	78.9	%
International sales revenue, net	108,471		22.9	%	103,514		21.1	%
Total sales revenue, net	$	474,221	100.0	%	$	491,563	100.0	%


	Six Months Ended August 31,
	2024				2023
Domestic sales revenue, net	$	666,430	74.8	%	$	747,608	77.4	%
International sales revenue, net	224,638		25.2	%	218,627		22.6	%
Total sales revenue, net	$	891,068	100.0	%	$	966,235	100.0	%

Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (1)

(Unaudited) (in thousands)


	Three Months Ended August 31, 2024
	Home & Outdoor				Beauty & Wellness				Total
Operating income, as reported (GAAP)	$	31,152	12.9	%	$	3,700	1.6	%	$	34,852	7.3	%

Restructuring charges	518		0.2	%	1,008		0.4	%	1,526		0.3	%
Subtotal	31,670		13.1	%	4,708		2.0	%	36,378		7.7	%
Amortization of intangible assets	1,768		0.7	%	2,771		1.2	%	4,539		1.0	%
Non-cash share-based compensation	2,814		1.2	%	2,673		1.2	%	5,487		1.2	%
Adjusted operating income (non-GAAP)	$	36,252	15.0	%	$	10,152	4.4	%	$	46,404	9.8	%


	Three Months Ended August 31, 2023
	Home & Outdoor				Beauty & Wellness				Total
Operating income, as reported (GAAP)	$	36,099	15.0	%	$	10,746	4.3	%	$	46,845	9.5	%
Restructuring charges	1,271		0.5	%	2,346		0.9	%	3,617		0.7	%
Subtotal	37,370		15.6	%	13,092		5.2	%	50,462		10.3	%
Amortization of intangible assets	1,764		0.7	%	2,830		1.1	%	4,594		0.9	%
Non-cash share-based compensation	3,287		1.4	%	3,942		1.6	%	7,229		1.5	%
Adjusted operating income (non-GAAP)	$	42,421	17.7	%	$	19,864	7.9	%	$	62,285	12.7	%


	Six Months Ended August 31, 2024
	Home & Outdoor				Beauty & Wellness	Total
Operating income, as reported (GAAP)	$	47,002	10.7	%		$	18,613	4.1	%	$	65,615	7.4	%
Restructuring charges	958		0.2	%		2,403		0.5	%	3,361		0.4	%
Subtotal	47,960		10.9	%		21,016		4.7	%	68,976		7.7	%
Amortization of intangible assets	3,533		0.8	%		5,526		1.2	%	9,059		1.0	%
Non-cash share-based compensation	5,827		1.3	%		5,493		1.2	%	11,320		1.3	%
Adjusted operating income (non-GAAP)	$	57,320	13.0	%		$	32,035	7.1	%	$	89,355	10.0	%


	Six Months Ended August 31, 2023
	Home & Outdoor				Beauty & Wellness	Total
Operating income, as reported (GAAP)	$	58,215	12.7	%		$	29,271	5.7	%	$	87,486	9.1	%
Bed, Bath & Beyond bankruptcy (7)	3,087		0.7	%		1,126		0.2	%	4,213		0.4	%
Restructuring charges	4,061		0.9	%		6,911		1.4	%	10,972		1.1	%
Subtotal	65,363		14.3	%		37,308		7.3	%	102,671		10.6	%
Amortization of intangible assets	3,541		0.8	%		5,710		1.1	%	9,251		1.0	%
Non-cash share-based compensation	7,785		1.7	%		8,741		1.7	%	16,526		1.7	%
Adjusted operating income (non-GAAP)	$	76,689	16.8	%		$	51,759	10.2	%	$	128,448	13.3	%

Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income to EBITDA

(Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (1)

(Unaudited) (in thousands)


	Three Months Ended August 31, 2024
	Home & Outdoor				Beauty & Wellness				Total
Operating income, as reported (GAAP)	$	31,152	12.9	%	$	3,700	1.6	%	$	34,852	7.3	%
Depreciation and amortization	6,590		2.7	%	7,202		3.1	%	13,792		2.9	%
Non-operating income, net	—		—	%	170		0.1	%	170		—	%
EBITDA (non-GAAP)	37,742		15.6	%	11,072		4.8	%	48,814		10.3	%
Add: Restructuring charges	518		0.2	%	1,008		0.4	%	1,526		0.3	%
Non-cash share-based compensation	2,814		1.2	%	2,673		1.2	%	5,487		1.2	%
Adjusted EBITDA (non-GAAP)	$	41,074	17.0	%	$	14,753	6.4	%	$	55,827	11.8	%


	Three Months Ended August 31, 2023
	Home & Outdoor				Beauty & Wellness				Total
Operating income, as reported (GAAP)	$	36,099	15.0	%	$	10,746	4.3	%	$	46,845	9.5	%
Depreciation and amortization	6,606		2.8	%	7,285		2.9	%	13,891		2.8	%
Non-operating income, net	—		—	%	148		0.1	%	148		—	%
EBITDA (non-GAAP)	42,705		17.8	%	18,179		7.2	%	60,884		12.4	%
Add: Restructuring charges	1,271		0.5	%	2,346		0.9	%	3,617		0.7	%
Non-cash share-based compensation	3,287		1.4	%	3,942		1.6	%	7,229		1.5	%
Adjusted EBITDA (non-GAAP)	$	47,263	19.7	%	$	24,467	9.7	%	$	71,730	14.6	%


	Six Months Ended August 31, 2024
	Home & Outdoor				Beauty & Wellness				Total
Operating income, as reported (GAAP)	$	47,002	10.7	%	$	18,613	4.1	%	$	65,615	7.4	%
Depreciation and amortization	13,237		3.0	%	14,391		3.2	%	27,628		3.1	%
Non-operating income, net	—		—	%	270		0.1	%	270		—	%
EBITDA (non-GAAP)	60,239		13.7	%	33,274		7.4	%	93,513		10.5	%
Add: Restructuring charges	958		0.2	%	2,403		0.5	%	3,361		0.4	%
Non-cash share-based compensation	5,827		1.3	%	5,493		1.2	%	11,320		1.3	%
Adjusted EBITDA (non-GAAP)	$	67,024	15.2	%	$	41,170	9.1	%	$	108,194	12.1	%


	Six Months Ended August 31, 2023
	Home & Outdoor				Beauty & Wellness				Total
Operating income, as reported (GAAP)	$	58,215	12.7	%	$	29,271	5.7	%	$	87,486	9.1	%
Depreciation and amortization	11,008		2.4	%	13,598		2.7	%	24,606		2.5	%
Non-operating income, net	—		—	%	285		0.1	%	285		—	%
EBITDA (non-GAAP)	69,223		15.1	%	43,154		8.5	%	112,377		11.6	%
Add: Bed, Bath & Beyond bankruptcy	3,087		0.7	%	1,126		0.2	%	4,213		0.4	%
Restructuring charges	4,061		0.9	%	6,911		1.4	%	10,972		1.1	%
Non-cash share-based compensation	7,785		1.7	%	8,741		1.7	%	16,526		1.7	%
Adjusted EBITDA (non-GAAP)	$	84,156	18.4	%	$	59,932	11.8	%	$	144,088	14.9	%

Reconciliation of Non-GAAP Financial Measures – GAAP Net Income to EBITDA

(Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (1)

(Unaudited) (in thousands)


	Three Months Ended August 31,
	2024				2023
Net income, as reported (GAAP)	$	17,014	3.6	%	$	27,381	5.6	%
Interest expense	13,216		2.8	%	13,654		2.8	%
Income tax expense	4,792		1.0	%	5,958		1.2	%
Depreciation and amortization	13,792		2.9	%	13,891		2.8	%
EBITDA (non-GAAP)	48,814		10.3	%	60,884		12.4	%

Add: Restructuring charges	1,526		0.3	%	3,617		0.7	%
Non-cash share-based compensation	5,487		1.2	%	7,229		1.5	%
Adjusted EBITDA (non-GAAP)	$	55,827	11.8	%	$	71,730	14.6	%


	Six Months Ended August 31,
	2024				2023
Net income, as reported (GAAP)	$	23,218	2.6	%	$	49,962	5.2	%

Interest expense	25,759		2.9	%	27,706		2.9	%
Income tax expense	16,908		1.9	%	10,103		1.0	%
Depreciation and amortization	27,628		3.1	%	24,606		2.5	%
EBITDA (non-GAAP)	93,513		10.5	%	112,377		11.6	%
Add: Bed, Bath & Beyond bankruptcy	—		—	%	4,213		0.4	%
Restructuring charges	3,361		0.4	%	10,972		1.1	%
Non-cash share-based compensation	11,320		1.3	%	16,526		1.7	%
Adjusted EBITDA (non-GAAP)	$	108,194	12.1	%	$	144,088	14.9	%


	Quarterly Period Ended								Twelve Months Ended August 31, 2024
	November		February		May		August
Net income, as reported (GAAP)	$	75,898	$	42,734	$	6,204	$	17,014	$	141,850
Interest expense	12,859		12,500		12,543		13,216		51,118
Income tax expense	18,350		11,995		12,116		4,792		47,253
Depreciation and amortization	12,431		14,462		13,836		13,792		54,521
EBITDA (non-GAAP)	119,538		81,691		44,699		48,814		294,742







Add: Gain on sale of distribution and office facilities (8)	(34,190)		—		—		—		(34,190)
Restructuring charges	3,890		3,850		1,835		1,526		11,101
Non-cash share-based compensation	8,579		8,767		5,833		5,487		28,666
Adjusted EBITDA (non-GAAP)	$	97,817	$	94,308	$	52,367	$	55,827	$	300,319

Reconciliation of Non-GAAP Financial Measures – GAAP Income and Diluted EPS to

Adjusted Income and Adjusted Diluted EPS (Non-GAAP) (1)

(Unaudited) (in thousands, except per share data)


	Three Months Ended August 31, 2024
	Income						Diluted EPS
	Before Tax		Tax		Net of Tax		Before Tax		Tax		Net of Tax
As reported (GAAP)	$	21,806	$	4,792	$	17,014	$	0.95	$	0.21	$	0.74
Restructuring charges	1,526		138		1,388		0.07		0.01		0.06
Subtotal	23,332		4,930		18,402		1.02		0.22		0.81
Amortization of intangible assets	4,539		661		3,878		0.20		0.03		0.17
Non-cash share-based compensation	5,487		221		5,266		0.24		0.01		0.23
Adjusted (non-GAAP)	$	33,358	$	5,812	$	27,546	$	1.46	$	0.25	$	1.21

Weighted average shares of common stock used in computing diluted EPS											22,839


	Three Months Ended August 31, 2023
	Income						Diluted EPS
	Before Tax		Tax		Net of Tax		Before Tax		Tax		Net of Tax
As reported (GAAP)	$	33,339	$	5,958	$	27,381	$	1.39	$	0.25	$	1.14


Restructuring charges	3,617		44		3,573		0.15		—		0.15
Subtotal	36,956		6,002		30,954		1.54		0.25		1.29
Amortization of intangible assets	4,594		607		3,987		0.19		0.03		0.17
Non-cash share-based compensation	7,229		385		6,844		0.30		0.02		0.28
Adjusted (non-GAAP)	$	48,779	$	6,994	$	41,785	$	2.03	$	0.29	$	1.74

Weighted average shares of common stock used in computing diluted EPS											24,041


	Six Months Ended August 31, 2024
	Income						Diluted EPS
	Before Tax		Tax		Net of Tax		Before Tax		Tax		Net of Tax
As reported (GAAP)	$	40,126	$	16,908	$	23,218	$	1.73	$	0.73	$	1.00
Barbados tax reform (9)	—		(6,045)		6,045		—		(0.26)		0.26
Restructuring charges	3,361		303		3,058		0.14		0.01		0.13

Subtotal	43,487		11,166		32,321		1.87		0.48		1.39
Amortization of intangible assets	9,059		1,322		7,737		0.39		0.06		0.33
Non-cash share-based compensation	11,320		485		10,835		0.49		0.02		0.47
Adjusted (non-GAAP)	$	63,866	$	12,973	$	50,893	$	2.75	$	0.56	$	2.19

Weighted average shares of common stock used in computing diluted EPS											23,236

Reconciliation of Non-GAAP Financial Measures – GAAP Income and Diluted EPS to

Adjusted Income and Adjusted Diluted EPS (Non-GAAP) (1)

(Unaudited) (in thousands, except per share data)


	Six Months Ended August 31, 2023
	Income						Diluted EPS
	Before Tax		Tax		Net of Tax		Before Tax		Tax		Net of Tax
As reported (GAAP)	$	60,065	$	10,103	$	49,962	$	2.49	$	0.42	$	2.07
Bed, Bath & Beyond bankruptcy	4,213		53		4,160		0.17		—		0.17
Restructuring charges	10,972		136		10,836		0.46		0.01		0.45
Subtotal	75,250		10,292		64,958		3.12		0.43		2.70
Amortization of intangible assets	9,251		1,213		8,038		0.38		0.05		0.33
Non-cash share-based compensation	16,526		1,026		15,500		0.69		0.04		0.64
Adjusted (non-GAAP)	$	101,027	$	12,531	$	88,496	$	4.19	$	0.52	$	3.67

Weighted average shares of common stock used in computing diluted EPS											24,088

Selected Consolidated Balance Sheet and Cash Flow Information

(Unaudited) (in thousands)


	August 31,
	2024		2023
Balance Sheet:
Cash and cash equivalents	$	20,137	$	24,214
Receivables, net	365,675		387,498
Inventory	469,625		435,681
Total assets, current	900,635		888,692
Assets held for sale	—		17,179
Total assets	2,880,377		2,901,660
Total liabilities, current	508,696		472,395
Total long-term liabilities	804,101		927,382
Total debt	713,235		844,903
Stockholders' equity	1,567,580		1,501,883


	Six Months Ended August 31,
	2024		2023
Cash Flow:
Depreciation and amortization	$	27,628	$	24,606
Net cash provided by operating activities	69,916		157,732
Capital and intangible asset expenditures	14,026		20,557
Net debt proceeds (repayments)	46,925		(90,125)
Payments for repurchases of common stock	103,144		54,535

Reconciliation of Non-GAAP Financial Measures – GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (1) (2)

(Unaudited) (in thousands)


	Six Months Ended August 31,
	2024		2023
Net cash provided by operating activities (GAAP)	$	69,916	$	157,732
Less: Capital and intangible asset expenditures	(14,026)		(20,557)
Free cash flow (non-GAAP)	$	55,890	$	137,175

Reconciliation of Non-GAAP Financial Measures – Net Leverage Ratio (Non-GAAP) (1) (3)

(Unaudited) (in thousands)


	Quarterly Period Ended								Twelve Months Ended August 31, 2024
	November		February		May		August
Adjusted EBITDA (non-GAAP) (10)	$	97,817	$	94,308	$	52,367	$	55,827	$	300,319



Total borrowings under the credit agreement, as reported (GAAP)									$	718,875
Add: Outstanding letters of credit									9,460
Less: Unrestricted cash and cash equivalents									(25,160)
Net debt									$	703,175

Net leverage ratio (non-GAAP) (3)									2.34

Fiscal 2025 Outlook for Net Sales Revenue

(Unaudited) (in thousands)


Consolidated:	Fiscal 2024		Outlook Fiscal 2025
Net sales revenue	$	2,005,050	$	1,885,000		—	$	1,935,000
Net sales revenue decline			(6.0)		%	—	(3.5)		%

Reconciliation of Non-GAAP Financial Measures – Fiscal 2025 Outlook for GAAP Net Income to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)

and Adjusted EBITDA (Non-GAAP) (1) (Unaudited) (in thousands)


	Six Months Ended August 31, 2024		Outlook for the Balance of the Fiscal Year (Six Months)					Outlook Fiscal 2025
Net income, as reported (GAAP)	$	23,218	$	85,194	—	$	102,721	$	108,412	—	$	125,939
Interest expense	25,759		20,241		—	18,241		46,000		—	44,000
Income tax expense	16,908		28,349		—	30,341		45,257		—	47,249
Depreciation and amortization	27,628		25,872		—	23,882		53,500		—	51,510
EBITDA (non-GAAP)	93,513		159,656		—	175,185		253,169		—	268,698
Add: Restructuring charges	3,361		5,565		—	565		8,926		—	3,926
Non-cash share-based compensation	11,320		13,585		—	12,556		24,905		—	23,876
Adjusted EBITDA (non-GAAP)	$	108,194	$	178,806	—	$	188,306	$	287,000	—	$	296,500

Reconciliation of Non-GAAP Financial Measures - Fiscal 2025 Outlook for GAAP Diluted EPS to Adjusted Diluted EPS (Non-GAAP) and GAAP Effective Tax Rate to Adjusted Effective Tax Rate (Non-GAAP) (1) (Unaudited)


	Six Months Ended August 31, 2024		Outlook for the Balance of the Fiscal Year (Six Months)					Outlook Fiscal 2025					Tax Rate Outlook Fiscal 2025
Diluted EPS, as reported (GAAP)	$	1.00	$	3.69	-	$	4.45	$	4.69	-	$	5.45	29.5	%	-	27.3	%
Restructuring charges	0.14		0.25		-	0.03		0.39		-	0.17
Amortization of intangible assets	0.39		0.39		-	0.37		0.78		-	0.76
Non-cash share-based compensation	0.49		0.59		-	0.54		1.08		-	1.03
Income tax effect of adjustments (11)	0.17		(0.11)		-	(0.08)		0.06		-	0.09		(8.2)	%	-	(6.6)	%
Adjusted diluted EPS (non-GAAP)	$	2.19	$	4.81	-	$	5.31	$	7.00	-	$	7.50	21.3	%	-	20.7	%

Reconciliation of Non-GAAP Financial Measures – Fiscal 2025 Outlook for GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (1) (2)

(Unaudited) (in thousands)


	Six Months Ended August 31, 2024		Outlook for the Balance of the Fiscal Year (Six Months)					Outlook Fiscal 2025
Net cash provided by operating activities (GAAP)	$	69,916	$	147,084	—	$	162,084	$	217,000	—	$	232,000
Less: Capital and intangible asset expenditures	(14,026)		(22,974)		—	(17,974)		(37,000)		—	(32,000)
Free cash flow (non-GAAP)	$	55,890	$	124,110	—	$	144,110	$	180,000	—	$	200,000

HELEN OF TROY LIMITED AND SUBSIDIARIES

Notes to Press Release


(1)						This press release contains non-GAAP financial measures. Adjusted Operating Income, Adjusted Operating Margin, Adjusted Effective Tax Rate, Adjusted Income, Adjusted Diluted EPS, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Net Leverage Ratio (“Non-GAAP Financial Measures”) that are discussed in the accompanying press release or in the preceding tables may be considered non-GAAP financial measures as defined by SEC Regulation G, Rule 100. Accordingly, the Company is providing the preceding tables that reconcile these measures to their corresponding GAAP-based financial measures. The Company is unable to present a quantitative reconciliation of forward-looking expected net leverage ratio to its most directly comparable forward-looking GAAP financial measure because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP financial measure without unreasonable effort or expense. In addition, the Company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors. The Company believes that these Non-GAAP Financial Measures provide useful information to management and investors regarding financial and business trends relating to its financial condition and results of operations. The Company believes that these Non-GAAP Financial Measures, in combination with the Company's financial results calculated in accordance with GAAP, provide investors with additional perspective regarding the impact of certain charges and benefits on applicable income, margin and earnings per share measures. The Company also believes that these Non-GAAP Financial Measures facilitate a more direct comparison of the Company's performance with its competitors. The Company further believes that including the excluded charges and benefits would not accurately reflect the underlying performance of the Company's operations for the period in which the charges and benefits were incurred and reflected in the Company's GAAP financial results. The material limitation associated with the use of the Non-GAAP Financial Measures is that the Non-GAAP Financial Measures do not reflect the full economic impact of the Company's activities. These Non-GAAP Financial Measures are not prepared in accordance with GAAP, are not an alternative to GAAP financial measures, and may be calculated differently than non-GAAP financial measures disclosed by other companies. Accordingly, undue reliance should not be placed on non-GAAP financial measures.

(2)						Free cash flow represents net cash provided by operating activities less capital and intangible asset expenditures.

(3)						Net leverage ratio is calculated as (a) total borrowings under the Company's credit agreement plus outstanding letters of credit, net of unrestricted cash and cash equivalents, including readily marketable obligations issued, guaranteed or insured by the U.S. with maturities of two years or less, at the end of the current period, divided by (b) Adjusted EBITDA per the Company's credit agreement (calculated as EBITDA plus non-cash charges and certain allowed addbacks, less certain non-cash income, plus the pro forma effect of acquisitions and certain pro forma run-rate cost savings for acquisitions and dispositions, as applicable for the trailing twelve months ended as of the current period).

(4)						Organic business refers to net sales revenue associated with product lines or brands after the first twelve months from the date the product line or brand is acquired, excluding the impact that foreign currency remeasurement had on reported net sales revenue. Net sales revenue from internally developed brands or product lines is considered Organic business activity.

(5)						Accounts receivable turnover uses 12 month trailing net sales revenue. The current and four prior quarters' ending balances of trade accounts receivable are used for the purposes of computing the average balance component as required by the particular measure.

(6)						Domestic net sales revenue includes net sales revenue from the U.S. and Canada.

(7)						Represents a charge for uncollectible receivables due to the bankruptcy of Bed, Bath & Beyond (“Bed, Bath & Beyond bankruptcy”).

(8)						Gain on the sale of distribution and office facilities in El Paso, Texas during the third quarter of fiscal year 2024.





(9)						Represents a discrete tax charge to revalue existing deferred tax liabilities as a result of Barbados enacting a domestic corporate income tax rate of 9%, effective beginning with the Company's fiscal year 2025 (“Barbados tax reform”).

(10)						See reconciliation of Adjusted EBITDA to the most directly comparable GAAP-based financial measure (net income) in the accompanying tables to this press release.

(11)						Income tax effect of adjustments is inclusive of the Barbados tax reform income tax adjustment.