We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Helen of Troy Hits 52-Week High: Here Are the Factors at Play
Read MoreHide Full Article
Helen of Troy Limited (HELE - Free Report) touched a 52-week high of $155.79, before closing the session slightly lower at $155.13 on Sep 3. The company is benefiting from strength in its Leadership Brands, along with robust online sales and core business advancements. Also, it is progressing well with its transformation plan.
Driven by these upsides, shares of the company have rallied approximately 16% in the past three months, outperforming the industry’s growth of 9.5%.
Helen of Troy has been focused on making solid investments in its “Leadership Brands,” which is a portfolio of market leading brands. These brands account for a significant chunk of the company’s sales. Markedly, Leadership Brands’ sales improved nearly 8.9% year over year in fiscal 2019. During the first quarter of fiscal 2020, leadership brands improved 7.4%. We note that management remains on track with investments in product launches, marketing efforts and e-commerce strategies for Leadership Brands.
The company is also benefiting from its consistent online sales and digital marketing efforts. Notably, online sales advanced 28% year over year in the first quarter of fiscal 2020 and constituted nearly 23% of the company’s top line. Management plans to make further investments in this arena, in an attempt to keep pace with the evolving consumer environment. In fact, the company is constantly augmenting its digital presence through effective marketing plans and improved content.
In addition, Helen of Troy’s Houseware unit is experiencing sturdy growth. Net sales in the segment advanced 23.6% during the first quarter, courtesy of growth in point of sale, increased distribution with brick and mortar customers, better online sales as well as innovations. Going ahead, for fiscal 2020, management expects this unit to grow in the range of 6-8%.
Apart from these, the company is on track its multi-year transformation plan. It concluded Phase I and is focused on Phase II, which is expected to drive growth for the next five years. Phase II of the plan includes continued investments in Leadership Brands, with plans to grow the same through customer-friendly innovations, international expansion and acquisitions. Also, the company aims to enhance its operating efficiency and shared service facility. Long-term goals of Helen of Troy’s transformation plan include better organic sales growth, continued margin expansion and efficient capital allocation.
Encouraged by such upsides, management raised its view for fiscal 2020, when it reported first-quarter results. Consolidated net sales are currently projected in the band of $1.590-$1.620 billion compared with previous projection of $1.580-$1.611 billion. Adjusted earnings from continuing operations are projected in the range of $8.40-$8.65 compared with the previous view of $8.25-$8.50.
We expect all aforementioned factors to continue bolstering the company’s performance, and help it remain in investors’ good books.
Other Key Picks
Estee Lauder (EL - Free Report) has a long-term earnings growth rate of 13% and a Zacks Rank #2 (Buy).
Inter Parfums, Inc. (IPAR - Free Report) delivered average positive earnings surprise of 12.1% in the trailing four quarters. It has a long-term earnings growth rate of 12.5% and a Zacks Rank #2.
MEDIFAST (MED - Free Report) , also with a Zacks Rank #2, has delivered positive earnings surprise in the trailing three quarters.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Helen of Troy Hits 52-Week High: Here Are the Factors at Play
Helen of Troy Limited (HELE - Free Report) touched a 52-week high of $155.79, before closing the session slightly lower at $155.13 on Sep 3. The company is benefiting from strength in its Leadership Brands, along with robust online sales and core business advancements. Also, it is progressing well with its transformation plan.
.jpg)
Driven by these upsides, shares of the company have rallied approximately 16% in the past three months, outperforming the industry’s growth of 9.5%.
Let’s take a closer look at the aspects driving this Zacks Rank #1 (Strong Buy) stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Helen of Troy’s Growth Story
Helen of Troy has been focused on making solid investments in its “Leadership Brands,” which is a portfolio of market leading brands. These brands account for a significant chunk of the company’s sales. Markedly, Leadership Brands’ sales improved nearly 8.9% year over year in fiscal 2019. During the first quarter of fiscal 2020, leadership brands improved 7.4%. We note that management remains on track with investments in product launches, marketing efforts and e-commerce strategies for Leadership Brands.
The company is also benefiting from its consistent online sales and digital marketing efforts. Notably, online sales advanced 28% year over year in the first quarter of fiscal 2020 and constituted nearly 23% of the company’s top line. Management plans to make further investments in this arena, in an attempt to keep pace with the evolving consumer environment. In fact, the company is constantly augmenting its digital presence through effective marketing plans and improved content.
In addition, Helen of Troy’s Houseware unit is experiencing sturdy growth. Net sales in the segment advanced 23.6% during the first quarter, courtesy of growth in point of sale, increased distribution with brick and mortar customers, better online sales as well as innovations. Going ahead, for fiscal 2020, management expects this unit to grow in the range of 6-8%.
Apart from these, the company is on track its multi-year transformation plan. It concluded Phase I and is focused on Phase II, which is expected to drive growth for the next five years. Phase II of the plan includes continued investments in Leadership Brands, with plans to grow the same through customer-friendly innovations, international expansion and acquisitions. Also, the company aims to enhance its operating efficiency and shared service facility. Long-term goals of Helen of Troy’s transformation plan include better organic sales growth, continued margin expansion and efficient capital allocation.
Encouraged by such upsides, management raised its view for fiscal 2020, when it reported first-quarter results. Consolidated net sales are currently projected in the band of $1.590-$1.620 billion compared with previous projection of $1.580-$1.611 billion. Adjusted earnings from continuing operations are projected in the range of $8.40-$8.65 compared with the previous view of $8.25-$8.50.
We expect all aforementioned factors to continue bolstering the company’s performance, and help it remain in investors’ good books.
Other Key Picks
Estee Lauder (EL - Free Report) has a long-term earnings growth rate of 13% and a Zacks Rank #2 (Buy).
Inter Parfums, Inc. (IPAR - Free Report) delivered average positive earnings surprise of 12.1% in the trailing four quarters. It has a long-term earnings growth rate of 12.5% and a Zacks Rank #2.
MEDIFAST (MED - Free Report) , also with a Zacks Rank #2, has delivered positive earnings surprise in the trailing three quarters.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>