By Sabela Ojea

Shares of Helen of Troy fell after the consumer-products company cut its outlook for the year, citing a difficult consumer spending environment.

The stock was down 5% at $56.27 in premarket trading Wednesday. Shares of the company, which owns or licenses brands such as Osprey outdoor goods and Oxo kitchenware, have halved over the past 12 months, as of Tuesday's close.

The Bermuda-based company said it now expects revenue for fiscal 2025 to be down 4.6%-5.8% to $1.89 billion to $1.91 billion, from a prior outlook for a decline of 3.5% to 6%. Analysts polled by Factset forecast full-year revenue of $1.91 billion.

The sales outlook reflects lingering inflation, macro uncertainty, soft consumer spending, greater promotions and close inventory management by retailers, the company said.

Helen of Tray also guided for full-year earnings of $4.60 to $5.02, down from prior views of $4.69 to $5.45, and cut the top end of its adjusted per-share earnings outlook to $7.15 to $7.40, from a previous $7 to $7.50. Analysts forecast adjusted EPS of $7.20.

Helen of Troy's outlook comes as it reports a third-quarter net income of $49.6 million, or $2.17 a share, compared with $75.9 million, or $3.19 a share, a year earlier.

The company said its Beauty & Wellness business was hit by a weak winter and illness season, lower hair-appliance sales and increased competition, among other factors.

Stripping out one-time items, earnings per share for the three months ended Nov. 30 came in at $2.67. Analysts had forecast adjusted earnings of $2.58.

Quarterly revenue fell 3.4% to $530.7 million, below the $532.9 million expected by Wall Street.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

January 08, 2025 09:15 ET (14:15 GMT)

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