Helen of Troy Limited (HELE) 9 Jul 242025 Q1 Earnings call transcript

Greetings, and welcome to the Helen of Troy Limited First Quarter Fiscal 2025 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Ms. Sabrina McKee, Senior Vice President of Investor Relations and Business Development for Helen of Troy Limited. you. Thank

begin. may You

will Good Quarter and The Fiscal this Noel follows: the operator. of brief of statements. forward-looking agenda to Troy's call Ms. I as is First XXXX the morning with morning, you, a the welcome discussion company's everyone, and review Geoffroy, Helen for year. begin Thank business Earnings the remainder for financials on comment provide Then will detail our strategy Brian and then and will some revised the our fiscal company's perspective in more CEO, outlook. performance on the Mr. Grass, Call. current CFO, trends discuss of

Following open up will this, call we for Q&A. the

This current Generally, and expects similar words forward-looking certain expectation anticipates, words the on other identifying forward-looking are with conference respect events may management's performance. statements. based to contain financial statements believes, that call words future are or

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be information reliance calculated differently to alternative This to or company other be The information may conference non-GAAP an call and information. information. may undue statements GAAP not not include may cautions parties. financial that than place non-GAAP considered are financial listeners on also information measures forward-looking by disclosed financial These non-GAAP the non-GAAP

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been first revealed The quarter about leadership a to company the has for our team action and has that organization. business entire the realities our global me, it call and

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Wellness Home, have Beauty As we that Outdoor, a the are of proud & categories. following house brands, brands across strong our diversity of portfolio the consumer of and the our

revitalize execution. and with innovation Our our brands imperative marketing, is to stronger

the over need in deliver capabilities well investing plan the to successfully strategy beyond. our are period we We and

capabilities and analytics data across next-level in investing enterprise. our to to effectiveness and the productivity improve committed are We

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organization we generated embraced processes changes of being ways flywheel. to has our the and continues to brands, back changes learn new the collaborating. The from and new into reinvested the Our creation refuel are savings expect which value

exacerbated changed quarter. discuss let's in what Now has or first been the

widely become and retailers the consumers are has more of business, As and environment has our reported, stretched further and last even essentials Specific the over more to over prioritizing challenged we worsened. months. X seen some discretionary are the health areas Consumers been even macro items. financially have

our slowdown channel category on beauty and trend tools global unexpected an was mass beauty There accessories. example, in in packs outdoor to like also continue down. the household especially $XXX. overall, the Also, beauty dry items discretionary specialty of For and pressure impacted food more sales under storage more

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less All and volumes to timing. into of exposes this us more visibility volatility and order

in changes also that the consumer behavior. supply industry in were impact chain inventory consumption clear-outs our recognizing The the are overstocking, has had explosion deal COVID an on to We e-commerce. with There patterns and had pandemic business. issues, massive and

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and by fundamentals our and brand-building address We spend. increase marketing actions prioritizing continuing strong this innovation to underinvestment are taking to

However, the path to we clear originally it has become anticipated. will brand growth take than that sustainable longer

infrastructure the invest to and capabilities about growth our support in the need are earlier to spoke I targeting. we core

center distribution necessary is one new investments. in of Our Tennessee these

brings some While have next this to come, disruption level automation. we as we phase that near-term encountered years serve and live technology the for will capacity of us us facility last go with

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system was resulting and ways: savings in savings net causes productivity work us factor impacted costs X revenue, and shipping delayed drove our issues miss a quarter, that while incremental our and have hurt backlog lost root the around challenges in the sales These manually address profitability. costs. additional The to the delayed

right capabilities these to continues the sorts growing are upgrading critical to choice. Although of pains be state-of-the-art is and processes and disappointing, systems strategic our

with seen Our address our and throughput Tennessee working is the shipping early to team during in July. and progressively our June we diligently suppliers improved have remaining issues,

I now our Everything would taking turn starts the and to our to issues like to with address maximize actions brands. are these opportunities. we

of rigorous brand brand-building to approach who there. the our and brands fundamentals we and begin in define of stand Helen Troy marketing framework refocused invested our serving quantitatively organization. we segment the building our implementing health a what for. So clarifying elevating across and market, brands by in are 'XX, entailed let's developing a selecting our entire and on fiscal Beginning This

to momentum then content, innovation rigorous activate do to consistent All upfront be revenue marketing and brand innovation in and this data-centric drive grounded activation our and It work revitalized gain relevance and pipeline the strategies. rebuild growth. to and will share these takes needed time brand

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improve We our our we ROI throughout consumers with will leverage data are and journeys. brand and product plans to activation to their full ensure enhance to our connecting this funnel

spending. nonworking to to also our maximize the in bring enhanced it partners number in As refine our mix reduced efficiencies, resulting our of not agency we refinement of ensure best-in-class working a helped agencies relates us media with, but reduction we only our investment. This significant creativity our COE and has capabilities, work

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Flask Hydro up the new in result international expectations team collaboration as U.S. our of opportunities. below in stronger grew open the Hydro experience teams leverages between performing is major the markets. of Flask, while direct to This the sales our international all

mentioned expect half us this benefit year. distribution expanded internationally, We the previously to coupled in distribution this latter North in in designs of the new with America gains fiscal

retains Turning and signs to brand the #X we OXO. stabilizing. in The is kitchen category utensils, that see its share

distribution innovation in product our relevant as to categories with market continue current expand adjacencies. expect design along we and leading to OXO's We us benefit share and award-winning

are Beauty game. online campaign this I marketing Wellness, retail is Drybar well Shoppers month presence Drug what in as expanded our when great Mart quarter. launching a XXX locations launching first In Drybar it's Canada, we previously The the I & mean as later example bold say in in new of elevating mentioned

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despite And forward. to distribution move the Project Tennessee to finally, delayed our Pegasus savings center, continues related

reduce base. We progress that goods implementing multiple on work projects have the costs of streams, supplier simplify sold good made and cost our

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CEO today as would be I I closing, months was could In I spoke anticipate when to stepping into X the message. not you almost this I ago, here delivering role, sitting

addressing. to has revealed some term. I about profitable I our realities with As we and sustainable the that these committed business have have want our and choices growth quarter deliver that our discussed, we company Even acknowledged to reiterate to remain and challenges, long are strategic

focused you can speed has committed with challenges and the to our and never I been more assure organization agility. addressing

leverage where next We revitalize are fully new our analytics. committed actions the and and network to to embrace and reset brands and distribution our level Be win needed shopper data capability. shops, the

people who better. of the and We can will our and do exceptional values. by remain we dedication our purpose, passion vision success will committed be and Our driven to

turn Brian. Now over will it I to

morning, revision disappointment Good first performance in everyone. Noel's comments by and our outlook. full quarter our the to Noel. I'll year you, echoing Thank the start regarding

headwinds emerged of global increased first continue first existing more we Many replenishment pronounced activity, executional spoke New uncertainty. quarter combination these retail include some last. of and pressure challenges, to you and and and of evolve. macro the pronounced variable slowdown promotional a softer These headwinds quarter in towards greater more became the to end the some more became outdoor a since and

from distribution costs the include of by our results Curlsmith quarter. largely approximately additional first Tennessee product end issues facility, the will insurance we from the of revenue transitory and believe $X.XX and second and automation shipping quarter ERP Our system that the lost integration This EPS be adverse start-up an costs. challenges, factors includes impact adjusted the health in in an from spike disruption liability unexpected unexpected

first immediately in by effective the expect end facility higher We challenges, integration our faced the reform, ERP quarter. in quarter. issues Barbados start-up tax we the and which overcome Curlsmith automation believe largely tax became are of distribution to We now the second we also expense the past from

half results It's investment note year. fiscal for of OXO a the meaningful effect that on 'XX. to automation, that the enough start-up a first rely our growth impacting important backdrop, on of issues of for that limited Flask our but impact only unfortunately, response have a to orders automation are the to planned cost Hydro this the preserves In highest subset and structure is are our way adjusting in the we thoughtful level

$XX of and in the remainder lower than the actions entered see taking partially less for a expected million improvement leverage, impact environment sales offset are promotional our fiscal year. additional We It's revenue operating profit for realize 'XX. outlook million pretax we year $XX decrease, as more and of the between mix to favorable of expected the now the we we

quarter. by & higher These outdoor System automation the decline the fans to into factors integration the channels which executional system. of Beauty a consolidated I'll and now of decline decline by for issues pockets called driven replenishment approximately partially of our discussion our were XX.X%, and slowdown we a prestige million Curlsmith higher led move orders net in detailed of has from by Outdoor and quarter, appliances, to Beauty our pronounced inventory offset more and between and slowdown driven and sales customers first quarter sales international the in & a of facility challenges products outdoor. retail Wellness. Consolidated broader in sales category declined humidifiers in and & Tennessee start-up hair this out Last Home net distribution ERP of $X sales and Wellness care accounted lower growth hair in on a results. more global

by gross XX.X% in We with and within of inventory to factors by offset Outdoor XXX points to were was last and year. & period programs Home mix product to profit from & favorable trade allowance by in basis lower driven initiatives, year-over-year discount driven dilution favorable higher the compared year-over-year. by sales margin within mix These Outdoor Wellness. in less product commodity Home the & were favorable mix expand costs Beauty higher expense a The a percentage a and partially Pegasus segment favorable obsolescence a able less segments, promotional same XX.X% improvement sales, customer

operating the quarter the for margin decreased was operating basis driven with operating trade impact basis automation estimated allowance On earlier. The X.X% XXX GAAP marketing X.X% year. point decrease adjusted the discount liability product from increased costs to primarily I favorable basis, the margin health start-up insurance an XXX period unfavorable programs, expense in last also to basis to same and margin was incremental sales compared referred and by higher decrease depreciation, lower points from dilution associated issues a leverage. of points XXX mix expense, additional included The and planned segments XX.X%. within less promotional

favorable higher Pegasus by a and Home & product These factors segment with lower and driven sales mix a commodity Outdoor initiatives costs were expense year-over-year. percentage offset overall partially inventory by of obsolescence favorable

planned marketing and offset expense & adjusted depreciation, year-over-year. less operating by were product from commodity planned a incremental costs. marketing lower factors costs XXX discount distribution operating our were operating and XX.X%, product mix XXX and to partially obsolescence higher These product Beauty costs sales Tennessee segment to and lower driven basis driven inventory decreased promotional leverage. mix. XX%, and incremental partially by commodity by offset expense, dilution a programs lower expense basis the for favorable On lower Outdoor Home favorable center, additional margin higher basis, Wellness favorable margin by less leverage factors operating a trade These Adjusted & decreased points allowance points at

tax first XX.X% in liabilities million first revalue as income of an primarily expense to well rate and tax charge to discrete as a due deferred was is tax to $X The Barbados change tax increase legislation our 'XX Our in XX.X% resulted which quarter in last to compared fiscal the increase year. the the in tax ongoing rate. of tax year-over-year during enacted due quarter

introduced aware were with expect the immediate is to this potential legislation of Barbados manner. in enacting tax a longer-term not we While tax we did rarely of be enacted legislation effect change, as

lower tax in the expense. developing $X.X we our In $X.XX minimum the have global interest increase and change $X.XX adjusted was a us income various we million to not response of have adjusted impact overall beyond will adjusted a and EPS offset and implementing fiscal changes, tax per phases meaningful was diluted effective expect Net per or income been reflecting strategy, planning decrease on tax 'XX. Non-GAAP that by income share. partially diluted rate, in tax the operating share, an Barbados

million decline cash cash solid opportunities generate We million from $XX.X quarter the repurchase inventory debt of in with $XXX in in to build with our 'XX cash fourth flow quarter. compared to total some we is ended quarter the largely of $XX.X peak to cash the million The sequential strategic operations increase season. advantage stock take due to the flow free selling see continue a due of of We $XX to flow of of our and of million, $XXX of million. year-over-year fiscal

net Our Xx was at end of fiscal the ratio to compared X.XXx 'XX. leverage

outlook to revised I like fiscal 'XX. would Now discuss for our

the quarter external challenges impacted reestablish taken obtainable that more the in look internal the we hard believe what first are pronounced have as our business a trends at objectives. We to as well

to We volume of resolve leading efficiency. throughput, distribution at of issues the second the Tennessee expect automation better greater the our the and lower quarter, to remainder end center costs by operating

a challenges impact as outlook executional consumer, their the uncertainty expected stretched and increasingly well more environment promotional increased Our retailers and inventories. our reflects macro of closely even view as more now managing of our

our challenges. impact between million and year full net $X.XXX includes of from ERP the estimated disruption This shipping $XX to implies and issues approximately X.X%. sales automation a Curlsmith fiscal to of distribution $X.XXX decline to net 'XX Tennessee billion which integration the X% billion in sales facility at We and due now start-up expect a

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

GAAP range to $X.XX EPS in of and diluted for $X implies We the and adjusted XX.X% EPS $X.XX of diluted now expect EPS diluted of $X.XX full adjusted the which to year an full XX.X%. non-GAAP We expect to adjusted now to margin compress approximately coming Tennessee XXX basis automation year-over-year EBITDA basis to with points our XX distribution from the XXX facility. year approximately points by start-up decline issues at

We and benefits be expect from continue for Pegasus other gross growth. improvements to reinvested to profit

become factors XXX the health roughly our external While of expected, basis points. and a our investment remain to brands. continue plan business on of have growth year-over-year in more increase originally and spending than we for challenging focused long-term

Our more favorable of our of approximately to compression now the gross relationship We expiration adjusted headwind environment basis continues referred year-over-year from points outlook margin less XX of view some EBITDA from a sales a a include promotional expect earlier. to mix. out-license and the

we expect in to which improvement due expect earlier. more still lower to the than leverage I We margin offset anticipate decline the year-over-year by actions revenue, we additional However, profit from referred Project operating Pegasus. to to be expand gross

tax range fiscal call and in for in savings, cost our XX.X%. and tax to now GAAP a the XX.X% In terms XX.X% We release. April we Project cost non-GAAP adjusted are rate of year estimates rate our and range we are cadence effective that full to the of XX.X% outlined discussed the Pegasus, which of earnings maintaining restructuring expect

fiscal flow facility. to which $X We and implies now million expect of includes $XXX $XXX XX.X% $XX with million, million to XX.X% in capital free Tennessee share in 'XX, range asset of to equipment and closing for our intangible cash distribution million expect a million of associated between which the million We range yield of million. and of remaining cash $XXX approximately free $XX expenditures adjusted EBITDA flow the $XXX Friday's using technology price

by and fiscal be as to between is X.Xx ratio leverage in agreement, now credit X.Xx expected of the defined end Net our 'XX.

growth the to half the sales, now of terms the a cadence a X.X% second X% expect of second quarterly of and to In X% in X% 'XX of of the in decline of year. fiscal quarter decline we of

We and X% decline adjusted of XX% expect growth diluted half a to X% in XX% decline in of the second to quarter in second year. the a of EPS of the

not does include outlook impact of divestiture. our estimated an potential Finally, a

our process there in we but are line advance over to continued our speed. have time been prioritizing extended have entrants, as new have We and value

We small not met, transact. to effort, largely are believe our we have of And expectations value dedicated a will We team risk that discipline. the minimal. is requires is so M&A distraction believe if the not we

We have improved and significantly been our its to dilutive has couple and the business rate over last the growth of impact minimized. years margin

opportunity 'XX full we and our of to with fiscal revitalize and for an disappointed its start intend are business. While implications the as the year, we to reset it use

is aspects many produce to expected long-term strategic but that in in longer improvement algorithm of underlying our see will it originally we our clear business, take it mentioned, Noel than plan. As growth

generated have the brand savings step-level are However, innovation in that points to building a We investment. and on now brand I proof culture the continue and capability right a we see to increase path. fuel company. much We within stronger

We are strategically, better and us that are to leveraging and we more shareholder state-of-the-art for are convinced improvements sustain our that and efficiently long-term success. data reliable than more to spend infrastructure deliver value these I'm investing growth positioning invest future creation. that critical foundational in ever is

that, And operator. it the turn back with to I'll

[Operator Instructions].

Parikh with question first & Rupesh the comes of Company. line Oppenheimer Our from

quarterly to back to wanted commentary. go cadence year the of just I half back So your

just top to want line sense I half consumer the half a It So macro just being could what's the side get challenges bottom of the improvement year? competitive and drive in the to driving some able and continue of to back the year. the front that in confidence on of back appears

that terms of also top improvement improvement. drive some the drivers to of that granularity more line in the maybe So some line key the drivers bottom

really Rupesh, and point-of-sale outlook it's did reflects view may want assume is that for what I'd Brian. I can is a remainder to believe say remain start the and what year. the trends conservative we of of constant those build. Noel our we

recent we discussed. Our are as Noel categories many share trends has than improved has and better what May, assumed across most through

into We any retailers into visibility visibility replenishment our other our also that promotions, reflected order we our with to retailers outlook. have and we with factors, have

clear integration shipping that we facility us. Tennessee As really any that tangible base disruption Curlsmith on line through And that revenue we kind our assumed then blocks is continue we would are QX. from have of mentioned, to. distribution issues building incremental now behind in of layered And that sight

and conservative be new would a on it's get a sometimes time new innovation that view those product innovation, take because we traction. to new So take and

look distribution we the we that then that at we our that comfortable we is investment of that on conservatively, new and and that return in and making based and marketing we're data outlook to assume line sight analytics on retained with. So have feel that

So did we than recently to with margin, deck promotional that's the seen kind respect more the we with assume expected favorable and also environment We're seeing. going then year. seeing to you what of investor as respect the less puts we're may of have were margin. bridge And that did we kind take account takes top into about line we in mix our we into a that that a in And our view. will talk have that

in cost importantly, in And growth that that made into had the impact that a the we the way going the factored intentionally then reflect of our out-license target we it investment year, So year. for the decisions the and structure to that assume continues we preserves expiration. of remainder

invest to our brand So health in for to intent term. the is long continue

very is as the of our year is what with Giant we And no conservative percentage Iron so we've then probably of view a investment to factored And respect earnings think saw in incremental growth margin the in for the sales. Pegasus the of we retained remainder a costs as you change, release.

we improvement operating get we're so And that cost of actions $XX allow $XX those to identified our Giant offset we'll Iron us importantly, continue think adjusted offset benefits. and and structure And or incremental costs investment to improvement million using the leverage, we profit growth million to spending. preserve then the cost to

And margin. conservative revenue in aspects. I and tried believe we've puts both the are to on or those all very earnings So hard takes have view and a

as to all is we only different -- objectives really pieces tried of we work just parts, believe I outlined, in, as what to here the and got obtainable Rupesh, Brian the year make, the of top reestablish comment for the that data line. we across first and out The all would and we remainder both are in the this information quarter again, bottom

basis quick then think provide? points. there expectation? last or of don't know And question. margin I you I terms granular little my expected in over time, know updated there's guys more gross you a implied follow-up can anything XXX any granularity if Is I

than we expect year. expect is my we less the prepared gross profit still and expand for from remarks some environment do adjusted compression more Yes, EBITDA and what in said I said giving my margin adjusted other targets specific prepared slightly full trying the income. to away I what from favorable and stay in I'm any remarks, you to the but promotional But margin operating mix,

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

get terms maybe things I that sort I discovering, the of in of peeling a of within back feeling that So bit guess, were not of there's the expected as little a onion the company.

I like all in to Operating of Chief to holding there's manage like back feel some company. operating bring a need these help of So been in Officer you do the that information the pieces? Do you people wondering, I'm you moving some by guess maybe feel

because of to I'm we've issues seen that I like quarters just have -- that other a there's of there's emerged. where drop afraid terms in couple realizing things shoes more now some

just on divisions? communication-wise about what's feel And going like So going you how guess, across maybe you of explain I the Noel, internally what's on? of kind kind how could

would the in a I data me the But I intelligence, organization. would bringing during And spirit and brand covered data points of quantitative brand the enjoyed those question. of a building et get allowed marketing had all our for but our further a talked of think, experts matter company analytics, for that. hood that It's the marketing new the several rigor framework. Linda. quarter. And not thing quarter, subject biggest more in the prepared insight, lot I the importantly, data organization that's COE new combination the a basis of muscle our company. an a part the only appreciate say was it's wake associated would who and our strong of full And for is about came on also new. I pandemic. powerful a data behind folks basis brand-building Thanks, also health. in and as I the for the that call, time, standpoint that got real I a regression And during say We and to And decision-making. under business and together from and data growth to cetera, you of that quarter remarks, emphasis a framework, were strategy say my long on the really this for up for the Yes. this analytics in a data with get we've me is model of

their gotten think we've data the brand that had that some this of we And things some some issues so in, underinvestment some there it And we've the the of mindset underlying masked, have health previously health, was of also and on are business. I health. brand pandemic masked in one recognized that brand as

One to new and need more is and we brings, So tactics. momentum I actions to that marketing the approach focus come few what what of for that mix actually on and acknowledge think on our ROI we work need me. generally see data-based moving things forward the at organization look of are, on the insights encouraged to things most take specifically positive the that of the where out now a and we organization. I data, us the our of that across to to allowing media most the data and across bring across that, is brands as say, and very investment would I I'm clarity

into that's weakness there's worked we Brian we So to further, have a the incremental anticipated back do why other we what also outlined, go, have as hard room to which to so tangibly a some reached There's see We've optimize not year We've built to our that to us the and that also shows the key slowing going also because really see to some got of us back some much more order in deck and of brand year. have preserve gained showed health half us. posture. to growth slide growth built as me quickly that the headway the we've that year full progress we've got we've have saturation, gained, underlying for tells we've we blocks we've -- building P&L go might you further in room be online can a We've about that in investment is some. as a incremental turn the to invest. that got to get before. We come we've make got our the it weakness into areas talked investor we in address portfolio that's of distribution. and allowing the But not in as past. to lot to positive but that

say in the health. terms that's of the what and So would brands kind of brand I

we piece some the operating up, This the fiscal some operating of most the part of that mid-May, where shipping work complex center. X the and the well think of team very facility, the state-of-the-art but are systems distributions I last we And some of most that we have the the talked that's root new where uncovered there. The distribution some is kind about time, of in and as very distribution and probably really challenges business, still the other has is of piece of automation diligently very, is with back come get which that now operating. a quite some we've is automation was this 'XX. systems working came reached on Tennessee through biggest powering for areas significant phase-up cause started last in, to and

little a bit head of of a that's So is. my perspective where

execution is a were sales the That's understanding, breakdown somehow Okay. then quarter question my of more the $X have the decline just you And million. in about to XX% better issues only said a because decline. only second X% maybe like

against easy is running tracked flattish channels Your prior comparison. year actually and POS

channels, track that worse in So than your be channels. should nontrack

know, exceeding I what have POS POS XX% even the down? for just don't it So up? your quarter Was was what your it all-channel sense it decline POS is. X%, what is I in was? if seems like it do mean, But or far it you is down sales -- a is your your was

and at So between that performance? plug your is of reductions Is the just that the is POS inventory the rest your retail. all sales that, the difference

Yes.

QX we mean, Curlsmith challenges percentage that executional points as quarter. revenue our shortfall, in at and of with X.X a -- and So it were there's decline I look the that's the both TNDC there we piece of saw about that the

It into us for was The took some other areas, inventory about a global one slowdown. big outdoor That a pockets there. we slowdown. of with manifested retailer last quarter

track out, would called retailer what replenishment. and quarter. that us you're that been of change as outside an in looking we we big more area was stronger measured has There's the and in slowed of, a the that not had to probably I channels softer say much down. at, So the a you I that think, for be lot did, outdoor tends variable

are the of Brian? see the from kind to sales the quarter impacted not drivers. that the you're So going ordering that POS biggest an pattern probably Those for in standpoint.

Well, in too, is activity, reduction It's which dilution. sales promotional to sales. a a

and We the very get wouldn't about So question all your on can't And something see we that's view But and looking do attempt also of buy have have try lot you're you view. most complete data a the in get to data we that possible. We to channels that hard categories. complete in a data very POS at. a view. all complete

as we the will And was our the mentioned, than Yes. than where we favorable of standpoint, a in was May. remainder were bit June across for would May. through we in seeing assumption stay more were positive point-of-sale we more we were what what a year We've increased Brian May, June, trends as and on where our some I data would we've at say, looked view analytics saw of we've our I say, view, our categories seen across from

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

made April, the gave you typical there. what expected difficult guidance X/X or articulate obviously was just for to really And happened last more through I can initial answer but up yet then kind of than And of hasn't on want with in kind the that. of been the so Troy. late this even the of QX the to visibility you question is way follow I of kind Helen quarter, points

done and macro change guess what kind and an about think thought what illusion. was we impacted impacted visibility what's to How of we should can this restore it guidance visibility? be what and more to quarter's prior the your specifically last faster And your Or I that visibility was So just impacting or it? quarter's now?

I say Yes. that would there some worse. are got things

on. got when be talked more you areas, as worse to some back just of global got worse. the things things that like Some as in the was we that outdoor but went quarter some activity, the of quarter macro would consumer that replenishment That pronounced on. went promotional April, the we retailer I slowdown the knew mentioned, higher weakening The

something that going center TNDC peeling was that gave were we we understand got we the on at the when -- of peel the Linda used issues, back in phrase distribution some allowed the talked in earlier, marketing onion to quarter some model us mid-May. know mix mentioned As to April, Bob, onion to our really and and businesses. What us the arose in what I the it didn't a of kind was issues, you all, back of base more bit data those

at quarter costs enactment rise and of tax side, insurance then the reform. health unexpected line the And things end then to the or of costs that on sudden were Barbados in quarter that the was our bottom product they the the quite So couple came very of those in liability came late a spike the fruition.

have that we the in very, the some and truly very say what development. to, were were things late than quarter would were they worse So that visibility I anticipating be things those certain would we others but some we then

retailers. that walk system and get a add we I'd of acceleration really XX.X% had Bob, By from was The slowdown. growing. if then Osprey declines. patterns just the adjustment was little, the did would there range biggest say is Osprey you not order the for challenges way, we the I decline, the to surprise the then a you XX% expecting category look that we try gaining and share And share. it was backwards that down, continues was me, with to key see the share. it's but from abrupt X category were gaining in provided, the gain sudden That as something to fairly at outdoor and close

seeing of So the activity we recently to towards very those were up big been not quarter, up very then adjustments that we much had promotional were until not significantly. the end fairly ramp expecting. And see started that

XX% of things the that to of So those big X kind it's provided. from we kind you for that outlook get me, down

the us be your help expect maybe this What so to to level And just set be expect because you then medium-term there do moving And from now? categories it what right underlying do over it Okay. is What parts. you period? demand year? many a are

and all different various lot would a I across our in as they're stages. we look I have Yes. say, categories,

remarks, category. we've mentioned stabilizing. as think I insulated liquids some to well fairly a would I got hair continue hair say and as total are my high-end that I perform prestige performing well utensils, categories beverage, tools, in kitchen

the of a I think category kind of pandemic, stabilizing. now that's coming that's off

items. Outdoor mentioned, unexpectedly. recent storage as has been quite had us. spending discretionary I really not performing even dramatic been, more come On really a actually the standpoint spike Brian been on That's from tightening turn much the are have That more as is negative somewhat the that's has think down taken been It's or that a and travel a performer standpoint, down during X and well dry strong just an as since in also has pack quarter, for side, coming consumers it food recently then, pandemic. the flip declining.

in would performance of thermometers green my some overall as from are OXO. but both share I categories, less Vicks, shoots. in that's mentioned So on categories, share I that's some our a example, our would standpoint, utensils -- May positive healthy on are of remarks, in that which we saw which category look say grew at for kitchen of say more some share, grew We X what I healthy in as those in and maybe grew categories, Braun categories,

Brian extended travelers as mentioned, categories we've on well year-to-date As packs fiscal through in we share the May. despite tech Osprey grew Hydro category as as in that adjacent in decline brand. We other share that in in insulated grew Osprey some Flask with

momentum packs, like appliance, So also share and trend see we're insulated May there. in of to kinds would beverageware starting positive areas areas. total in some improvements some hair see We those travel

by some some work areas, to but in long We positive do, there's our in puts to of various kind takes overall, of the momentum progress. way say would May. but share a and I performance of So by in was still encouraged I go, a the have encouraged I lot was

clarify, Noel we'll -- Bob, or when to data we refers that's get And not just that's what that use for May, outlook. to and in June later, to our

things. earlier all an outlook those category, our the had share, all point-of-sale view So have trends, would demand of

through the kind of data And after Noel point May, that the view that we referring trends earlier answered but feel of May is aspects. we've -- so to those an taken that, conservative which questions earlier got I what all of a many improved saw in of conservatism, to the we from one in is like has we point

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

Just following on up performance. share

go moves, the about share into necessarily shelf space should to you're think there sort not the but that we less going is in. period, how for that the fall be reset of we less As risk categories space,

we say, channels have as up gained we've successfully already, distribution focus. to our shops Olivia, the plan, of customers across and part strong more in strategic has where strategy many win year-ago a Yes. got been I and period. and the shopper of that We've continue would different a lined being new

So retailers. using broadening of presence bringing and on data analytics, the I brands see our us perspective and successfully and our good brands

and portfolio issues. some ground pockets the underlying a gone factors helps are into all we've brand the there brands. shelf lost come those ensure the what And placement, really to brands the need and the the mobile in placement places, positive to items is for or down part is our of strengthening some on that and So maintain front our phasing, might that places overall, a all so we've focus we that going that couple brand I are shelf. really maybe health the of presence and where of things of performing that those available we for on of aren't well that's physically lost be center have all as think some core and or

an pressures then want a you greatest One items. bit hair us discussion to idea the tools of you at of Got give end order of Can categories, the magnitude you to little I of the because end, if it. of about couple order And the pivot the your mentioned talk the versus being high magnitude -- of low a differences sales saw $XXX. maybe expectations of on under kind versus line there?

been items Yes. of of I kind low discretionary would quarters several the say there's for would at new consumer tools. like the say not tools. the of high I kind end has hair in that's at energy pressure is of we're end, category the -- the hair -- that -- purchases where now, making the

kind straighteners, standpoint, essentials say shelf opening basic we're -- would shopping under basic range drivers, retailers, a as looking that We're for of more that end more more call our there the category of basic depressed pressure very so category to is that is the brand framework well where as on at We irons, example, area, that have at, how traded do consumers energy in do Drybar category there. a the still we category and higher from look really $XXX care overall Who And we have seeing target spend build-out even discretionary performing in is at to items that I mass to are end. we future. and curling that's more strong there And frankly, will we share stuff less but presence the us quite cetera. our of was well. items. The the I have that want in of what an I money but high et difference that the at performing their end can is there, high play part more that's area, successfully the are points in not more has the in building the the the we stronger what play get work play at after. and at on good

really of positive liquid is when be key I few blowout that think combination glass, used impact on I We're the our talked going tools. a for is of us. liquids to perfect regimen well that's offer get last in liquids Drybar that for. We've to Drybar Drybar a having you our that's looking on brands our with doing consumer launched hot that. both portfolio at-home some about one and holders that time tools,

to higher continue in order and the angles that some of in strongly the is initiatives action need those push where we to end. So category perform that are to more

it. Got

at in Walmart, you're versus that assume? fair better here I So Ulta to assume doing

at where in tools The that category is a particular, Walmart on I the strong overall But performing stronger Walmart not the range. as is that is performance category strong opportunity at consumers Revlon there. is in our entry-level would perspective our say tools, good. category the -- -- from is higher as with share good. performance is at less isn't price the

Got That's very it. helpful.

potential for Just last and for just the me. through One shipping thinking question, on and higher tariffs. logistics X

through if about avoiding we'll tariffs that into go higher and choice percentage just that potential things outlook. higher? embedded be whether logical footprint, manufacturing a on it that made And higher on your diversify that First, Red like how what -- tariffs, are your can manufacturing to the was difficult products have in your that shipping thinking would if should are of China made, you revised then talk and costs, shipping exposure, logistics, the Sea the

So With a Olivia, contracted question. we thanks costs. of the for our costs, high shipping for are very respect to percentage

purposely some so we And to pricing, contract so of but opportunistic have near flexibility of can don't year. level fiscal into XX% we advantage And we contracted XXX%, is somewhere feel next take good.

tariffs, about there's say, to that provides. about ourselves. protect good feel manufacture we way that outside and XX% Asia look, With of protection no of that We the So about our that, respect XX% I and China. goods to is in would perfectly of

be there exposure. dealing difference we would what with respect the that's is so to tariff And

several on suppliers outside of the working our diversify significant now, to are best right with to that that the currently production exposure reduce to are region. projects and still like potential supply We the And base China seems move Asia areas into tariffs. in strategy

have America That the outside areas of to we a out and China. That's we're proven proven leaning more that's not that be we one there. has to projects initiative. move strategy, Asia successful successful one underway several production North into. said, were that like as have say, to And I as there also were sourcing as be We a taking we action I strategic would

a you gives that hopefully, So sense.

line the comes question UBS. Peter of from next with Our Grom

prior questions, achieve then, to just it could longer to you a to So on you're start, the the commentary still targets. Brian, like And take step mentioned of the right in of internally context maybe achievable. and kind are you about both to these I strategy long-term wanted that do going feel And running I back externally and targets maybe these take now. what think think back to

could kind I process? targets a returning X-year Just Or external these you October, think of or may the that this changes make on when mean, outlined multiyear do any to more in a is back thoughts happen? internal of reset?

the long-term referring think to these targets, Is clarify, you you're strategic plan that correct? say just Peter, So to for I Elevate targets. when Growth

Correct.

this look, I I towards. that's -- point we're Yes. time, in mean, at think what Okay. working we

by we year, think to see assess, I we the mentioned, to revitalized have obviously, progresses do was 'XX. point very the year. as front-end investment. weighted this fiscal X have weighted 'XX, going making and fiscal over we be our this over -- out million environment are how will for investment and very growth of to that half and and we We in remainder it's $XX in I'll increased We're it years, reset back

of building And on that we of us a business. the tangible making health right And are so of we new get to long-term level towards Elevate the for gives like innovation, we with distribution, feel lot the feel choices like that blocks investment, path new the for Growth.

And you to say point I we anything. time, plays I how rest plays the this vision. year much But environment out, very don't the at the would still how have yes, out. see our that's so add to if want know in of

build as is that on only the strategically would kind in with my right and that's place. us. the that's positive actually continue And across work that, continued No. across brand I to will the to right got with core only smarter gotten opportunity I the that opportunities agree. data forward optimize the that would and of portfolio, tactics the marketing invest mean seeing confidence and fundamentals modeling I with fueling path We've to I've -- get bolsters consistently. fairly shows I for our the thing to ROIs right our brands growing data

follow-ups. quick Okay. maybe then That's just And really X helpful.

maybe softness? just you that's weakness maybe on America mentioned in that entire to sure share of more? seeing the concentrated on not could brands the in outdoor lot but a channel, not. declines, or you're A versus unpack you be rather back some losses the read performance, across about are can the Is more Flask, seems broadly. I'm the talk North with the a then function Hydro commentary you Just bit category. channel And of fair of than category Or if disappointed a the you that

Yes.

we're outdoor, on in a would overall slowdown outdoor. I So seeing say

in general down, have accordingly. retailers -- managing Our and slowed are outdoor they're their inventories

packs to second wear That's impact outdoor the an to Flask. much us, insulated broader the beverage base. consumer to on business. bit broadened major for lens the answer has is question Hydro kind is and pivot as the I'll But consumer is So of a outdoor on our predominant well where little know, a our beyond we category

somewhat I would that has competitive then America much designs we think much, see. is while this I of that's can big my a Flask outdoor. in the say now. And really lot category impacted North think I broader new now the a disappointment gone. category. actually by Flask, really on embraced it evident And of than Hydro And where it Hydro has it shift It's in has So become is that

seen out days, sugar at the at launched you USA the have our the our happy We new website, a designs just look floral, If Limited you there than you These have Flask look months Edition. more everything looking earthy the tone limited are to X would focused look ago, we crush activities. content, ombré at very hiking from to of very, just where different you cetera. edition, outdoor from et Hydro and probably on an and very was designs

it's the category where much of we're view is traction a broader positive that. Now and seeing from

I we're continue insulated As see May, back to and you entire in the mentioned, we'll for think track footprint to now uptick share continue beverage see in going we're brand. us this trend momentum shares that get to tumbler on growing And know we'll starting a the I section. distribution across category. broadened help that's to And see

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

just you're you softness on in second that I on expecting quarter kind other is to you're quarter. maybe for expecting those for I'm really talk just guess factors I improving? of what the Or based a guidance? in demand And consumer saw guess back the the the wondering well. half it maybe as about if follow-up improve that then just external

June we than Thanks, those we're we assumed put trends positive continue outlined difficult I and Susan. we this the seeing that seeing mid-May little call our timing bit of deployment we've say, we earlier, Brian and that, got say, what we through And year, it, through of would outlook were as sales data actually in kind No, more more what I a the did for together as outlook. trends through, as would that when now trends. were the rest use of June, would

a the trends we the measurably were year. outlook. Actually, the challenging first I continued were in of balance So that say throughout consumer not the quarter improved in we would factoring POS were assuming that

the even easier comparisons the of half compares, the any I in improvement did easier in we'll Susan, the will some second second though the lap we year, to half would year. the point is add of And assume start only not be in trend

gives perspective to in a respect of that this a little of outlook. our bit have with view hopefully, attempt terms to So you conservative

were the trends we've that the remain unfavorable that entire year. So constant and pretty said mid-May would those for that assumed

even of improvement though comparison no year get second So the half easier. will the in significantly the

there. a Okay. And follow-up then just in Got beauty, maybe That's it. helpful.

first I You think now, it liquids. tools in consumer about and which I've demand, in softer the talk that's I liquids guys believe, time both about heard talked you

a it And think still last I was -- that pretty like So seemed strong still industry. it mentioned, category was too, quarter, you the is Noel, strong. liquids hair

guess, then I of brands expect industry-wide do when And Curlsmith, some on So I'm your those curious, how guess, the there? share softness just you're other with losses fixed. I much to be is maybe versus disruptions you seeing

that look at it end just less some growth to adversely hair strong. pretty still impact did liquids once I It's issue strong at little When but has still The mentioned was, the Curlsmith category it you Yes. us. than prestige it. maybe liquids a the and

now quarter the retailer we behind some some us, positive serum did for us. liquid that's the a on We the those Drybar, behind would for first showing June very, some is losses glass we do on ulta.com new that halo we've as Curlsmith. say, believe doing a cream have blowout ratings standpoint, innovation wins and finishing a standpoint, I had stronger on liquid strong on than from put I are business. those from well very the We a us mentioned,

think us as some So Drybar I'd the new to better and Drybar, positive a I but trend in not performance probably on some see think to strong help we'll overall will there. see there on of direction I innovation starting us, like

time Ms. for we the Geoffroy of come turn floor back for final any end to Ladies our and comments. the now to gentlemen, I'll allowed questions.

know much. lot is entire very choices are the we've today. you we to articulate outlined joining we we for that organization this morning, very made us able but financial hope I Thank on call, been achieving the objectives you the you we've how committed a focused the covered leave Thanks I that all to that for as and today.

today's you. This Thank call. concludes conference

your Thank at may You lines your you time. participation. for disconnect this