Helen of Troy Limited (HELE) 24 Apr 242024 Q4 Earnings call transcript

Thank you operator. Good morning, everyone, and welcome to Helen of Troy's Fourth Quarter Fiscal 2024 Earnings Conference Call. The agenda for the call this morning is as follows: I'll begin with a brief discussion of forward-looking statements. Ms. Noel Geoffroy, the company's CEO, will comment on business performance and key accomplishments and then provide some perspective as we begin the new fiscal year. Mr. Then company's about the for current fiscal the detail in the will year. comment and trends CFO, Grass, financials review more upcoming Brian and expectations

This you we anticipates, that statements believes, the words events on with other for take or this, expectation based may similar questions expects current identifying to Following us certain and will are forward-looking today. are words respect conference management's forward-looking financial call contain Generally, statements. have words future performance.

the risks of the company number uncertainties a not other to measures an conference non-GAAP or to financial subject are listeners and non-GAAP to cautions GAAP that from statements cause information. information alternative may could information. disclosed statements to on parties. materially call information forward-looking results non-GAAP information reliance actual by place differently and non-GAAP anticipated be include Forward-looking undue that The are This considered may These financial financial may not differ also than results. be calculated

I the over conference that Releases measures. the the today's be at then Geoffroy. obtained company's Before interested contains tab. copy their the Investor Relations website over a of the I earnings turn reconcile by I Geoffroy, The been Ms. that now parties inform Ms. call of like Relations section to to tables release corresponding to financial would Press the to The non-GAAP all and homepage has selecting company's posted Investor measures the will release www.helenoftroy.com. earnings turn GAAP-based release can to tab call on

of today. this 'XX remarks year and We reported what ahead the Today every we day, and quarter in outlook full honored thank our everyone, public the optimistic for everywhere, adjusted with and Troy's we and expectations. of energized matter marks Helen inspiring that freight net and exceeded an Today, sales of came consolidated fourth organization CEO. first my lies lead purpose elevating EPS I'm moments Jack. that I fiscal us joining by to as provided for you, Hello, lives company. ahead results in Thank January. you am

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these into As we intensify. 'XX, move we seeing are trends fiscal

also prior to now and our promotions, for & period am gain due category, Outdoor pleased new our key store. travel in Turning the Elevate storage and growth Walmart, the segments. placement food continued gained canister share and year At within Home to We well well choices. kitchen as to insulated in NA as utensils of OXO Growth to sales kitchen XX% driven was shopper seasonal the home XX-month new Be categories U.S. highlight by Home share over as promotional one international. post-holiday [ have remains our increased the that later in achieved last Hydro The grilling 'XX. ] distribution miles categories Walmart and #X gadget Outdoor has strategic packs & colors channel, our the distribution are the X.X% net and teams distribution performed shops in wins. OXO to kitchen and branded line exciting and pleased OXO programs, other tumbler, of the ware, expanded. beverage secure period. by Flask travel in is fiscal our additional mass reception RMO where well utensils lives and OXO for as driven a gains the is in strong in results we notable our to population XX I the in strength brand grocery. of win timing in of International club collaborated the as line, replenishment. Softworks quarter. over online added This positive a

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colors You'll or and the Limited Crush waterfall bottles of ball whisk expand offerings available with the mixing internal shake. such shaker new perfect beautiful concepts smoothie see an protein bottle new a Pastel featuring for Sugar product these designed as tumblers travel insulated and with a us Edition new in on

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growth and prior illness flu and averages. also pre-COVID thermometry, in in were overall saw by hair below a drive Prestige partially factors helped year the historical sales We season decline international cold, and cough, a appliances instance in These and Hair cumulative Care. reflecting growth humidification which offset

the by channel benefited period mass We In also as benefited doors prior an tool continued volumizers strengthened Curlsmith distribution the in X pipeline across acquired weeks XXXX. from Drybar and incremental of for in from Prestige we driven April our and sales also Curlsmith online we support. hair sales portfolio. Beauty, quarter, compared Curlsmith, momentum the our incremental and in innovation and their their marketing to

after flu February in early within retailers As the at those In cough, consumer and and Hot consumables. designed historical example, the innovation, rollers selling our and became one relieve cold, and such impacted to tool humidifiers, averages as below This sought fiscal pre-COVID driver season a in our and making it arrived and both best help Wellness, the our weeks. for retailers products symptoms Roller-club year. congestion of inhalants year was quickly our prior sales key quarter our cough/cold related

As the our January a call, mentioned saw softer to during we season. start

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adjusted and that free Thank flow. generate I'm to outlook. We results and profit again our cash you, pleased Noel. gross EPS expectations. to EBITDA continued of quarter adjusted and report strong sales We margins, delivered exceeded business net expanded ahead our fourth our

year. reserve Hot & OXO, Wellness, investment, Pur, by our mix XX.X% period from customer operating favorable expense, to partially XX% in basis driven the to partially mentioned, referred including consolidated offset ramp-up by by Outdoor. same Growth inbound X% points operating Beyond, increased promotional margin of distribution and was by Outdoor lower last adjusted by incentive in a and favorable & with to points Tennessee a XX.X%, expense, incentive XXX of increased the basis a margin inventory Honeywell, basis, decrease lower and a discount segment higher distribution SKU associated product in points in factors a lower more a slightly in The diluted and for Osprey, incentive rationalization.These factors sales or These facility. & XX.X%, Home bankruptcy SKU including in was Gross annual Vicks, and an Braun, basis costs, quarter. customer income reserve expense, Adjusted our XX%. $XX.X promotional offset were expense, Wellness a driven Curlsmith. XX.X% discount higher within inbound expense. basis lower program mix, offset to to despite annual and annual compared a from with expectations was Noel $X.XX favorable were I marketing offset within distribution fourth grew freight increased the lower for inbound compensation favorable XX.X% partially discount higher rate. and & just trade interest quarter mix segments, share. by for driven margin These primarily same Tools. partially Revlon, in investment by Beauty tax effective trade improvement Beauty XXX adjusted profit shares to share, reserve Home above trade and lower product to, inventory Year-over-year expense. lower last gross by expense, Net offset more due growth and points decrease factors driven compensation freight and expense program by less just diluted XXX was the higher increase both and decreased compared less promotional On profit increase operating improved XX.X% Bed associated expense, product quarter unfavorable period in increase On Drybar, of lower of GAAP of inventory higher SKU margin expense, & benefits expense, increased EPS and to year, compensation million costs, rationalization. to operating mix. an adjusted the income to basis, $X.XX marketing and improvement the the Bath Tennessee income, the Non-GAAP in interest As partially were and per expense. the net benefits decrease adjusted Flask, an freight, the expense Hydro increase by margin outstanding, partially due adjusted was operating program increased higher our offset facility, XXX rationalization per the impacts ramp-up in declines commodity an product commodity

our We continue to with million compared quarter, 'XX. the $XXX fiscal the in cash of from of million $XXX fourth total line quarter to operations debt of with million, with flow cash $XX.X generate strong We a decrease ended expectations. in

the in compared exceed to year, year. our X.Xx ability or time same also to meet adjusted I'm performance pleased look the ratio last throughout the and other measures I'm net full sales, and improved leverage margin, outlook adjusted Xx including year back the full key with flow, to EPS, cash net consistency year. the free was with at interest of our fiscal EBITDA year-over-year sales net our financial at Our Stepping of ending pleased the course and performance expense, ratio. leverage commitments,

margin impact rationalization combined ahead full our $XX sales declined included approximately and operating line our structural as investment, increased Beyond Bath this declines slightly which repurchase prior of basis free EBITDA generated driven make XXX share full helped beat the the $XXX.X XXX year. still and margin SKU X.X%, While our freight, original original even bankruptcy expectations. of year we of compliance consolidated by despite inventory expense, Bed in outlook, points, million in We and the gross lower our favorable X.X% with lower cash us was basis $XX leverage our expectations, from headwinds original lower points target. adjusted costs by not SKU the the of expense our flow incurred million, interest with outlook. beyond year-over-year year We high of & by comparative the of year end million reserve EPA improved in marketing rationalization, end outlook included We and and improved leverage inbound reaching

portfolio in fiscal process The effort the divestiture through Finally, impact our we complete our be reasonably we to included likelihood, second a of divestiture potential a outlook. in actively cannot made is progress 'XX. in hope quarter optimize to estimated and that therefore, engaged brand and not of in potential our the at are this time, and timing

structure further We 'XX. an begins outlook through center, operational share for expanded service Growth divestiture scale intend RMO if have America distribution fiscal to road expand when occur, update Fiscal Tennessee strategic And our management. shared go-to-market organic our at time. 'XX including that state-of-the-art will We our North and grow to capital provides and map does repurchases, leverage with deploy improved will capabilities to our and era, margins, and we sales, assets, more capital strategic further announcement we make the our acquisitions, structure which Elevate our through the share.

'XX. our outlook for fiscal to Turning full year

from historical expectations cold, in variables, experiences the and their pre-COVID have and with prioritizing consumer number retailers, in season higher spend flu a further lingering of that are longer, factored that rates is lower more limited our for including softer view a discretionary line certain inflation, cough, We services of averages. growth interest on

believe sell-in match weeks and in higher healthy In categories, pockets expect we closely terms of retail we generally to hand overall, see of sell-through. retail inventory, on our is of we inventory some while

the operational we for softer Pegasus, environment. a what made from improvements are fuel we strategies, expect we've be in Elevate our we believe Growth well-positioned to the navigate will With spending consumer

billion and billion a X%. We net in $X.XXX of implies sales between decline of X% to 'XX, fiscal expect which growth $X.XXX

growth & X.X% outlook Wellness of we includes Home of & In brands. X.X%, headwind terms to out-license our sales segment, and of X% by of to of the to decline X% expect net relationship X% one a an which Beauty our of the approximately related expiration Outdoor of Wellness year-over-year

diluted GAAP $X.XX expect X.X% for full the of year an of $X.XX to range X.X%. EPS the non-GAAP and adjusted diluted We of of $X.XX EPS adjusted which to diluted in implies EPS $X.XX, to growth decline

expect We Pegasus decline other growth. to for and adjusted improvements reinvested XX are gross EBITDA margins roughly benefits profit as points basis from

current brands You environment of our share. and invest see in to health an further market grow opportunity the in as the the our softness

year-over-year As spending roughly 'XX. top XXX basis in increase growth points such, fiscal increase of in reflects our XXX of basis a outlook of investment on an points

relationship referred of in plan risk. basis includes the we for the also beginning making Pegasus, the initiatives updated strategic transitional that XX year-over-year of we the Growth earlier points while enterprise expiration the expected in are our to compression and minimizing benefits I the reflect EBITDA Elevate margin choices have expectations a 'XX.In these out-license of technology are fiscal from to terms initiatives included maximize headwind from adjusted to outlook Project of approximately Our some

expect achieving fiscal the recognition fiscal to of targets, fiscal $XX duration and 'XX of into our 'XX. in the over savings plan be approximately to now across and the to Pegasus the million 'XX are the We revised fiscal savings extending now balance of total we XX% savings the of estimated $XX of have 'XX 'XX.After total fall the maintaining cadence savings million but estimated

total to also onetime million million the restructuring plan over charges approximately restructuring million. $XX our duration lowering compared of previous the to $XX expect of pretax million charges million. are estimate estimated the $XX $XX to now by We We of $XX

to We during continue fiscal restructuring completed to 'XX. expect charges be

full and We rate non-GAAP adjusted to XX% a XX.X% of rate the range for effective expect XX.X%. XX% the tax tax range year of to fiscal GAAP

for and technology distribution initial We and includes initiatives to Tennessee of phase fiscal between million which $X and enterprise remaining and new intangible with facility associated expect asset to of capital the $XX technology million expenditures approximately million of related referred $XX earlier. first I equipment expenditures capital our 'XX,

We expect free of leverage credit be to million of 'XX. million between X.XXx $XXX Xx in cash our of million as EBITDA to Net agreement, range million. defined $XXX is flow ratio, $XXX to adjusted by in end expected the and and fiscal $XXX the

X% for terms sales, we to 'XX quarterly fiscal of of range expect first quarter cadence in of of In a approximately remaining in flat X% decline X% of of the a to growth each the quarters.

in We a in nearly of a XX% first of XX% first quarter. slight approximately for the decline in half adjusted the quarter, with to EPS expect fiscal 'XX decline and offsetting growth the second

half of EPS further optionality. growth implied growth deployment investment, increase in and outlook strong we're with the a range, of provide at X% in sheet growth flow, In productivity, summary, the pleased capital our significant fiscal an gross in net and high sales to adjusted range We both 'XX. further EPS flat margin expect the end second cash expansion, adjusted of to free balance

high flow flow cash yield end free a XX.X% Our of at market the of cash outlook the forward range capitalization. free using implies Monday's

to by market Our recognizing with almost adjusted We soon X.Xx him back and blokes on the finally, questions. compelling Jack, overall. and and turn than that, believe our want long after to debt for his favorably operator congratulating for close business charm, compare he he and implies better measurable I retirement for outstanding set XX work And career. sense but humor. contributions using multiple peer Helen end to I'm to be underlying Jack EBITDA with at the fundamentals meet. and metrics 'XX. fiscal the these missed, and of happy it all outlook Jancin with an at our that hope I've Jack that I strong forward fortunate will a distinguished capitalization you're with market admired been his EBITDA the high I'll can end the leadership, Monday's of to are retirement only now of have Troy EV are range And wisdom, was. the at of I His years will and of

question-and-answer now Our UBS. Instructions] session. first will from Grom our the conducting We be Peter [Operator line with question of comes

just Maybe so totally the And thank the at understand what of to the nothing turning a lot that you the those considered this of was I Day. or be guess and just I in -- over you we 'XX here. the all I year. but guidance. really just your be building about growth. the shows had best never back that years, for supposed wish But forward. of moving lots outlook couple going questions of expected There to luck questions a to start, much the slide Jack, that the And Maybe to help this was Investor to outlined break tailwinds never of way to the just or is context of

just So understand just a help really can to us what's October? that. follow-up maybe versus maybe you changed And then

more sometimes love with not the on in degree outlook this at comfort that many lost on point, of management the of It's listening Just kind transition, have would you guidance embed the of a the bit oftentimes flexibility. some perspective can right? those

you phasing backdrop? the of So visibility can of Just context imply achievable? following operating your or discuss of XQ, just maybe an that a improvement is kind the outlook challenging in seems just to given the this comfort

that say I'd QX, and about that the sequence know are can and we what we the orders outlook. both how go with seen stronger talk year internationally. also can take and now it of season in cough, of -- period now same season Outdoor With Okay. to the Peter, a whole drove in last when versus out. start then there we going year. we not QX -- build. then Noel last We that we replenishment QX, into there We've that and channel, cold, the October. far I'll flu and the did look, know Brian, pockets higher let's out, domestically Day gives in us year this inventory was hit that's when to seen had we've I'm based and year, and played and reduced expecting factors the and played confidence way respect are whole in we're And it's what so on the it's start QX, Investor in replenishment can solid

certain it in speed then in bumps of have manufacturers during retailers expectations resulting reports. but believe year. take then from And shared and factors now. so in environment. through October. some aware we that full of soft of ] and And growth seen which enhancements, with the largely from these were we in change a increasingly other time saw have all [ we're And system a bumps work we also and consumer lower October, all was recent we've hopefully, versus Amazon, Ulta, that inventory. to additional societed some Curlsmith retailers shipments those period speed what have DTC an impact like bit not really seen a That you've the other come platform And past Target, a out QX we Again, certain of will lot of integration

the what glad long-term distribution improvement will in throughout we'll October. not quarters we pointed of it year, last was an an and that out royalty build. long layer to 'XX has in fiscal Day And expiration know in when for term not guidance. with I'm had respect and complete the of out-license Investor that also us effectively exchange of in licensed dropped have again, gave earnings. to that It you revenue on bottom actually to our the relationship We and gives straight the line in income, And a and is the that meaningful then brands on we on guidance impact something long-term trademark one We had confidence we incremental X kind of earnings. we year. visibility lastly,

it's So building -- a distribution year. layers kind of the of building throughout

In of spend. of marketing QX terms is our absolute lowest level spend,

we so investment accelerate the benefit year. the that incremental of And of over will the anticipate course

time brands quarters over And like have weighted there be and momentum Flask on, volume. product take We're innovation Drybar, refreshes will to the will of early more Hydro to it efforts. still year, behind those more the and X So but doing is on new through X. key which we will believe, that spend course repositioning and then build drive, we

a quarters. of the layer don't quarter. result later we the those that as in bumps then in saw again, we And system will in in later in So QX shipments that expect speed we doing work were

high-level October entire saw bit to little with So in now. that's of 'XX kind what the a of our comparison we're seeing fiscal summary we outlook, of versus what

No, just it I well. was think going to say covered I Brian

why cetera. a conversations, in in ongoing on degree year. timing, their at of the Those -- rest that I confidence levers of areas last out have customer better feel look few the the et are particular. I think you Brian good incremental retailer distribution where I planogram you especially the on feel, pointed

solid, So things along, my in are the year to visibility can view. change but those goes things as

question Parikh comes the Rupesh from next Oppenheimer. of with Our line

wishes retirement. best and on congrats Jack, Also

just on So year front expectations ways just backdrop, then the, with the on the I to the competitive guess, your love promotional you are hear and out would seeing competitive starting just the this promotional promotional backdrop. guys

with ourselves the significant a comfortable made during positioned, one consumer, dynamics year, in time, expense. start QX, we in adjust. year out? think competitive feel point play could see -- actually with we'll how to could the in of competitive position how you going you Noel, I promotional dynamic we're and that think Yes, I and into to if add. have terms some softer customer expect honestly, and it's again. change adjustments, again, and at want will or to the But could But well we've the I consumer headwind. the we mean, that's this I yes, have promotion to had where pressure don't reasonable mean I next less

shifts right see don't I now. Yes. major

continue We to watch.

to to continue attention there. out We pay what's

adjustments few on unless we other bit as looked be that But could Hydro the the As thought assortment assortment select of a a we some dynamics a our competitive kind don't some the evolve Flask year. places course of sharper. see of I across Brian of items and over changes our major mentioned, few we made and found we

-- I this points about margin gross key gross margin thinking takes my past on can then year, terms And and should guess, expectations just my Is very improvement. the that we color strong of follow-up question, there line? and the -- you margin year share be any gross this in fiscal

profit I not Yes, in expansion, our trying color. But of guide specific margin can outlook gross gross extent guidance some and it. for you is the We're give implied fiscal you to 'XX. to can understand

we that drag or XXX our how called basis have of have compression loss coming the points. the basis XXX related investment consider then drags you point -- and increased only release XX marketing to points investment, points of And on relationship. we basis margin If a earnings basis growth from the out adjusted in overall, we a have of EBITDA out-license the then is XX contracting we

having expansion not through margin, basis respect the of idea -- gross comments. at 'XX. So fiscal expansion we're hopefully, the you but specifics XXX we're margin of get at to We again, of implied those least, least gross for some with points dimensionality doing

of Our next question Labick comes CJS from the Securities. Robert line with

This is Justin for Robert. on

investment in going was ratchet on other ability the growth. the view, your and our messages achieve environment one down depending bottom line of Day, to or key spending macro to and factors back Analyst steady So a the to messages up

ramp fiscal this you bps you've right revenue So to in given in to is why up included think plans? investment do spend addition morning, Elevate by incremental outlook growth 'XX XXX time Growth that your the laid out the the spending for

Yes.

you my really top at We needed build I now consumer the shoppers to is in are the need in environments, mean awareness, these these invest moments need some when are to available we be be looked mind, I our and of strength now, your of kind time in the investment. of view, trough top-of-mind the our brands. aware put shopping. as where -- brands think key to

investment where use the from portfolio XXX -- that out comes we of new point the Project Pegasus and out. we is laid will the fuel the basis so portfolio, And strategy

lean this to our those is areas responsiveness are the the in playing right we'll in of on good. ROI very playing the we the of the brands. return that believe invest investment the health on So is and out, year but brands and brands the throughout based how how we into is out, strength the We'll invest think time the adjust

Yes.

I fiscal 'XX thing that other agree the are that less would The time of Noel less now savings do to did kind algorithm add expected with more savings, there's the is with for right but compression, and is into I there factor Pegasus it.

We'll concerns of terms the leakage savings. ability a to And thing taking So longer but our the going developed to again, it's little just ultimately there. And and a we no technology get later. little get but have that do. come about little a piece tied EPS, in is bit right we development Pegasus we're to we're place, really get that bit that of in to to a comfortable achieve

follow-up. I appreciate then the one additional color there. more And

share X.XX the guidance buybacks. talk of flow those and healthy opportunistic X assume about and willingness your and price this to light [ be repurchasing could shares, I modest your end leverage cash particularly at along then And possible Your lines, aggressive generation calls target ] of in potential weakness you that's this morning. any for exclusive leverage of of to the year.

deployment, does capital not share as to the well. that looking acquisitions any share repurchase, to that correct I we're impact But we're buy with say repurchase. Yes. open would our our at which include include outlook That's respect would of is mindset and

So capital. position I in deploying sheet-wise, where are think a we we're balance interested in

from Linda Our question comes Davidson. D.A. the of line Bolton-Weiser with next

So can you area. Beauty the talk about just

'XX consumables you think you have was Hot down would I that Tools that FY in brand. the helped launch yet that have said and

up And the I thought Beauty a So you more? can will you exclusivity is fourth talk consumables the quarter. at expanding it? about be little bit then said [indiscernible].So And in was the you ending that now

of the that of correctly. were I fourth kind up being roots quarter, So if in Beauty the caught what the

up Hot fiscal in the it's I down Linda, want full being the Brian. was but called for Tools out to clarify, to I we because it start want year. quarter,

just want clear. want. you I So to if Noel, get that

looking to end into the them terms out, expand cetera, we and other work that at are with in -- be think did -- as launch ], to we it also Tools Yes. expand that Hot tools think to retail addition of liquids by, the is liquids, line, of And the I pointed you on continue some as year. Linda, of further et Hot drove and the to caps driven for And now to Tools I continue up -- the the does it customers. in [

portfolio across In consumer-centric terms innovation a of think maintain of I I our broader brands. hair tools,

We Drybar, have now Curlsmith. Tools, Revlon, Hot and

offers environment. that bath, really we world better good, consumers which that So of great consumer Revlon to hit We of kind can great meet the is be a consumer full current range needs. in position in, the of a value.

newest have -- in Our the It's other of the much accessible, the of in that already that end, mass that's we them Revlon the Beauty Hot Volumizer well on done remarks, for become range our higher just innovations Rollers We whole have drive and more Club, some particular. a is our I tool plus appliances And for in of well #X us retailers styling mentioned our price market. done tool a Roller it's have us. launched tooling point air still hot in then the in one my and top-selling retailers. February,

brands So needs, you cover to going. start that it's good get you the can you of and market of momentum meet range with right the when have, range the example the how of a

they revenue? terms of these And of the -- sounds revenue speed quantify fiscal then that in then like first in were Is the any some had any there completely in quarter? 'XX? is And you bumps that bump speed specific It way to things. referred affected in shipping bumps revenue that first you of lost to delayed is impact very the on in speed just to Or quarter first it due shipments quarter.

we right ERP Curlsmith, won't our precise that work speed out we it into that say, get probably in was terms a to we try be And terms in I effectively system we is business yes, and lot of some We're shipments. integrating quantification. or mean point were are our recapture in through X where think I But still with as the shipments. isolated kinks at Linda, so this sense system through that, that specific But bumps I working time, are would done did and in X make now. don't went we of and would we of view Yes. it integration. things. areas to those

likely and attention of I and It buy businesses, in as and again, constant kind But is And weren't instituting say one changes really just brands in what we we through wasn't declines features recoup they enhancements. -- not there aware what was we evolve highest And saw you and won't our in and recoup will the then the and have other volume continue the put platform the there. of they're things working where lost DTC We really then able need, there. a business retailers maintenance and overbuy platform upgrade. some new So required, we in going we're back quarter. and probably but to the to the not would first DTC, the ship are upgraded presence.

what and do need. our that to expect of It's you across but robust not gives going forward. DTC we brands the recoup, goes that volume hopefully, platforms from we expect different a why something we X So enhancements. you combination That's probably

not quarter. recruitment shipments the so a the specifically lost first those lift a because but now, of And of we place bit maybe we in have there's later little in

shelf pipeline guiding FY I the you And And of to you looking know revenue then in out? space excited expect if the have are you're more very pipeline fill? of gains 'XX. you do then comp a visibility the seem finally, that? much to long [ significant And FY this But going time. distribution in ] in you terms Can is -- getting on you is about the still out expansion you 'XX? how that contributor, growth get a quantify that how do is

goal opportunities exceeded that. say, a made RMO. organization white set were you after for progress pleased as probably form of Day I and kind new has key we ourselves the Yes. remember in We this we going American going would from internal priority with as was -- an that distribution after Investor We a some the 'XX. as North space been

] nice Some around and the examples remarks Gadgets, made of and there. that Grilling Walmart Oxo was some of X the Softworks, in OXO, comments are [ that I

North getting some got part outlook it's positive think an If additional 'XX. becomes beauty a got That's year out. year new that American it into of for go We've we So assortment RMO the whole where getting to the in area not sometimes the their right there. fiscal opportunities brand and it's 'XX. after be focus. of distribution, And we will just in ongoing a in in I some that continue

got best SKUs at the A sure making high-turning SKUs, the your time. you've at looking velocity in B really retailers and best You're highest SKUs

think I then it all -- So get it goes it's and don't we away.

ongoing North experience, be the my I and in that think year after in year activity an American will going out. that's RMO

in agree second, But to with time, the said, does in quarters lumpiness but compared fourth think will it is third like everything and Noel And the it the I first layer cause first quarter, I why does some is when have which had 'XX strong replenishment, that reason fiscal cadence the to we've of seen part that we we fiscal we the strong with new distribution our what results. do in with respect sales in 'XX.

as repeat been these added it in So expand to, get it where see distribution. then the layers able of we've fill don't the business. a and we don't business We've you some in of cases, kind

visibility use. your I talk to we do the to where year and on the then the premature fiscal about We're not So be think point, in point we last this think long-term growth And it'd good, of to it's plan sustainable, that. strategy. to continue really just drivers 'XX. We

Now I but obviously, 'XX. benefits of about sell-through do we fiscal talk ], everything the to think 'XX, if get it's we we in get [ the premature

then final Okay. is question And my M&A. on

very You're the that had you doing another what's might before a acquisition do valuation just me the And actually before all And that, I parts deal? to acquisition. execution attractive agreeable another adding the to said think acquisition. Curlsmith M&A still issues. It issues you the case? not an other seeing be looking with integration making are so with wise you and divestiture. Is seem onto like that's seems you to play talking moving just It or at and more like on potential other integration going about seems the

M&A Yes. let evolve. me say, processes first, Look,

sense a because have can completely at of of to period one you so And going and not market point we're an acquisitions. the in about time being lock for make acquisition ourselves of doesn't view talked the we period just time, into changes that that next

yes, are attractive about We to yes, -- have So a think opportunity did and buy assets at to I before. one an We good as talk we adjust. we point. Things this valuations valuations. reasonable see change, at

largely on And with perspective And to often so problems. to to I people big successful. has an to were we slight minor think was integrations, when had but This can very hiccups have but were QX, very integrations on very the view actually think do These that because systems not in it and -- as ability big I would integration it you problems. These success. Curlsmith shipments, it ship of complicated there impact out makes occur. sense. a -- our of have we impact the have then respect a called be It the Curlsmith,

I as do further a would see And so it not to not reason acquisition.

Our line Olivia Tong of with next from Raymond comes the James. question

the of QX to because focus on the to hoping provide revenue working obviously expectations. signs the you. luck increasing Jack, in improvement additional on I hear with retirement. of and QX your that. Best Congrats, we drive with debate you can consumer questions wanted great color on my blocks your all building slowdown, everything more I'm around to

would macros my me it -- increase retailers not leave then the question. So what your who what in let driving ask and there is to next be are distribution of favor? And I'll

Yes.

just some Olivia, some really and of brands later our drivers the I further retailers, that get the opportunities And we their case shelves I see, touched and you distribution. to in the the in in the the think that year. with have appeal excited have, think in on on is brands incremental some strong first, and aren't we of we and strong they're consumer distribution anxious

we feel about so it. good And

one Softworks OXO were a really mean, Walmart. shared the I I the that's for. and It's think, have, think and brand to their we brand the one on I where looking shelf. that one shoppers leading is Walmart's pleased that

and feel those I about So confident opportunities. very good

partnering can other ], is the incremental Helen We building of The business the incrementally talked our is behind full marketing it think marketing brand, so within investing our now of on that one more is -- of key talked also important for we desire team repositioning Troy. center And experience kind point interest, awareness, unit bringing a trades investment. the about our about first-ever the of [ funnel few to I plans brands. with out. excellence and we drive That even then brands

that that. that out new that our drive very we some I If you of items are just some of remarks, example -- deviable.Hot that's Sugar Flask, and in look innovation that, so appealing items came word like that investing about and at is quite for Hydro the Crush behind another prepared new like talked hot bit the of that very that a lot of traction the out, a the of positive -- drive these get rollers getting new

purchase put awareness, spend you them to those drive when innovations So behind items. those you've desire marketing the that to out, of got the the

weighted us in the that I me go. those confidence are And year for back things are about more are in the Brian to They X X strong areas that we're the bit half. shared. excited through give than X quarter quarter little those and So that as a

is outlook far? little they're around more and I beauty saying key performance? heard some Or a Obviously, Maybe more about of it the divergence the so bit happen haven't between between if specifically of terms of seeing Are out that's end ask in premium commentary an that of performance portfolio to the and retailer. your seen even your you we've seeing -- more any expectation mid-price, going reflective similar appliances. you can what a you're versus divergence more

I Yes. like portfolio really the cover again, about in our hair is is, would range. What tools we say the I that what

end. good, Curlsmith We have driving ] Tools, Revlon, best, high [ better, the at that Hot

cetera, we is, to price opportunity of needs. wherever right So consumer et an the the retailer with assortment to meet kind have point, those be there channel,

dryers, good of straighteners. the opening hair say point There's at with would of point price we performance perfect entry more that's those in at price well, a pinched. the example, I as hair uptake of and some $XX the new high Revlon of a to-again, by Dry had dryer, point. Max central distribution for on higher well But are sort tools match hair that mass $XX the doing of point, mentioned, the broadened kind hot I end, also seeing the are we're price that really same dryer when below at price sorts point, a of [ those drive consumers rollers resonating at a or strong ] So

So innovation Prestige say it. I that's to the there's would continues well the pockets market to is Liquids doing grow. draws of the appealing innovation if them and

continue see We to that a as category. strong

retailers, that the whether items innovation, Curlsmith, et feel new but continue to about. to in a of and area where slowing it's bit the an new little new some with on heard with strongly few continue it launch It's line, most cetera. a we've we As we versus recent months, it's area was Drybar, that's an that volume

think of to this it channels innovation have environment. up I across different all price That's to meet of and where strong the different sum here going to the they key various be So all the is points key the consumers to in really are.

question next the comes from Susan Canaccord Our of Genuity. line Anderson with

It you're to outdoor working on on I you're start as to Helen while Jack guess out retirement, Troy. maybe definitely your just to just was with you my category. send of well at missed. be Want congrats the great

across the of as and other the other well? curious, and in weakness areas Or just I maybe categories just inventory outdoor, higher weakness pockets also higher seeing you is that some some retail you seeing mentioned are you think there. in in inventory packs? then I was Are

Susan, would of yes, always a function a is say inventory I happening retailer consumer from what's standpoint.

obviously, consumer little So you see their we our across in reduces of kind on open to then core adjustments [indiscernible] make on that our but one different both based more levels. of across saw out areas entire and bit in store was elevated looked buy total necessarily internationally, in areas we their of inventory, can domestically Outdoor. areas is the for us purchasing. their of se, inventory, they're a we the the And how per which Osprey, managing they in called that But and not kind other inventory as kind the business.

a other slowed that have We was. of very extended some do versus the We in strong gone growth position. We year, categories #X but last #X category where the see the has it Osprey into. position over that adjacent has

kind and lifestyle a internationally. But duffels outdoor little of growth. et some areas of more inventory of the the in out it domestically So travel were like we called cetera, and we and show seeing both bit pocket packs packs, because

Walmart with in done talk curious should line guess coming I I'm obviously the then that we flow throughout year? the expect this how a well to hear very just Like you little about to It's lot innovation. year. rollout stores? maybe out have new the time OXO And of And of about bit. a what just then also

coming constantly categories like It's Yes. nice of OXO of utensils, products of the kind kitchen area, feeding one new coffee, our really canister storage, food baby in on hallmarks out the adjacent and OXO. remains brand. in of toddler #X lots some

set That's particular, already In in terms utensil kitchen happened. the market. has Walmart, already of in

the the happened our fiscal [ that right expansion can at is grilling of 'XX. see you kind So end ] towards of as

And some remarks, as that expanding in other we So I categories OXO there's over now. my in out of stores anticipate that's 'XX. mentioned course the

last question. And then just one

So on Flask. Hydro

So with the I maybe it well. sounds I'm I to accessories format of kind any of be from tumblerr like, the if expect to to you 'XX you obviously, the formats tumblers those? guess, if colorways for of newness coming more other, see coming curious and or fiscal just or do out bottle hot continue guess, types go

the target Yes. the the of for think, design about result style. of personal launch of do very, we've I of Pastel that got we also one is Crush of We've major partnership would sporting I a functionality, of not also think and Prestige say we DTC lot on in moved ours. that to food to lot the goods but great kind our these Sugar very where energy a on partner a another Hydro Flask, did limited got -- that as customer where exclusive. There's as colors, Gen match the growth a blossom what that and continue do I said, got Z with be only like female a partners. in looks their at on tumblers quickly. a colorway some design just We've

They're a things or very consumer, this that multiples color of sorts if special these they So have. design have very to willing it's right? to dish purchase or to a are interesting

be so of also important et think And to shapes, to be to cetera, going I area. important. going an that's caps, continue is Configurations

One we start as a night I of bottle. that ones off the other is launched mentioned that the insulated to shaker

our target those work are we different shopping. where shoppers So a those to as cetera. as brand That's more et meet need the as well year to distribution occasions as different understand really where to to formats more and go for shape smoothies a expand protein is we and shakes, we be you across can as coming, opportunities. we've or expect done think This great see more new target that's configurations I consumer the

And another that's at will facility category part in in this our our and opportunity. only better the that's a So customization, make that. personalization of new us big capability then Tennessee also

some in product It's the in 'XX. Flask. forward marketing confident rest -- as I So fiscal about the excited I'm about design, of I'm of the I'm both the we're said Hydro the on the as other remarks, that move my areas one and excited pivots we making in of innovation,

luck Thanks of exciting. so sounds rest good That year. for the -- much Great. the

and so over and Thanks we for joining We everyone. the Thanks thank look weeks. to for really support, of coming us. with speaking you your right. All days and interest much, you forward many

does teleconference. today's and this Ladies conclude gentlemen,

wonderful a day. disconnect and time. this your participation, you for You may have at Thank your lines