Helen of Troy Limited (HELE) 9 Oct 242025 Q2 Earnings call transcript

Greetings, and welcome to the Helen of Troy Second 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 Business Development and Investor Relations. Thank you.

begin. may You

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

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

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second to quarter I expectations. above results us and you Thank for that report everyone, pleased you, Sabrina. am joining were today. thank Hello,

core the shaping long-term actions growth took the portfolio. toward further and quarter, strengthening including we our our During decisive strategic initiatives,

despite persistent path revitalize approach, we performance. our operating we'll improve improvement be are the increasingly Through in right on our brand see to fundamentals. addition, which In -- our believe operating we continue our macro indicates reset on efforts to headwinds we and business, results to our data-driven

better Pegasus execution. critical fuel reinvestment more in continues with and new, combined generating brands. better leading our marketing campaigns, creative, stronger Project our is This be and on to brand sharper new is innovation track with fundamentals fuel, to media agile for

also are weighted meaningfully brands year-over-year, grow Fiscal distribution. increasingly our to X% where we our We shoppers continuing year-to-date, grew distribution our U.S. available shop. making our by

X year-to-date these U.S. with All improved efforts our maintaining our share key or in contribute of growing market categories this of to fiscal channels. measured performance share

an shaping update Now on our portfolio. to share

its shared process divest potential. or have business. offers engaged end the pause of not We the the that to previously we received quarter, business are value we we that Shortly as indicative the to were process in opted of of an the active the after

for continue our and evaluate the position will We growth. to to company long-term consistently we ensure brands success

acquisition are potential meet criteria. for growth and strong our remains look accretive better with Our strategy brands financially global together to

commitment divestitures We ensure and able to in our deliver remain to are disciplined on shareholder [indiscernible] increase will our acquisitions to we value.

results on the the an issues. provide and for quarter, the distributions Tennessee update Before I centre I Curlsmith turn will operational to

experienced. of execution improved efficiency into we that of have the we With the root we and issues. network addressed and discussed, pleased previously respect integrated throughout to second the the operating plan. ahead share causes center, quarter Curlsmith now distribution resolved shipping our our technology I'm our Tennessee successfully issues we As In ERP consistently integration Curlsmith distribution the quarter, to

best-in-class servicing now of and a reaching the line eye are fiscal year our the on our by with in customers continued end and expectations productivity with service. consumers goals anticipate We

performance to our performance performance spot. Now our performance wellness outdoor turn expectations of our portfolio. across let's bright ahead international our home remains Overall, a we and our strengthening see and

with new expansion utensils, ] expectations makes launched Our beauty improve taking [ fiscal It which for the but food of positive coffee cold grew wine we over stores hot fundamentals or Starting increase OXO and performance strong fiscal brew to growth the year-to-date quarter, end was gaining and continued brewer drive are the post-pandemic. & actions food that at the Outdoor. following reviews achieved or its largely X coffee, the strong after OXO in brands. our of coffee Shortly category the brand Core rapid is distribution in storage The has Xx the normalized earned task below also a OXO from coming share in versus year-to-date. After June see also as share focused our in quarter, we into of Walmart Home business Kitchen with sell-through and momentum consumer portable additional maker, reports. less. soon. with already momentum minutes and X,XXX

also quarter or bottle your worlds. The consumers in both consumer. launched key for our comes was example in focus Flask [indiscernible] areas by Flask provides discuss is The all is detail Hydro offer all make the pockets Lime in or distribution up travel X brand We key retailer new strong later, array Gen more album of Charlie performance, have of international campaign marketing. consumer also especially our many brand products, strong key marketing Hydro opportunities and outperformed by to with but the new cover configurations fitting album this in and markets. reviralization Flask encouraged of X with was for June launched ChubCap, celebrates straw Awards. The Habra of MTV being the as a ] [ We bras expanded The occasions. broad expectations colors summer a car by artists for Hydro distribution brand Hydro and into launched and summer across along also called of range the successfully individuality utility we it. and of benefited meaningful are is Chris most green second cupholders Everything. a areas. cultural progress summer, typified strap. also line best choice leakproof. Hydro campaign leading to you of EMEA, target the a own back and launched from style bottle innovation, Video Music Costco, quarter across Flask will The [ the and the internationally of in iconic in moments, with also I agility Green The consumer sales flip an it, Brad with and part girl it obsession with Flask cool still wide highlights our of relevant Class brand and consumer in new key which preferences OXO. and the As a and great ] Music showed the XCX

on quickly Flask Hydro created model social promoted water summer that our a accounts. media Brat we

leading and exposure tour in drove highest year-to-date attention Hydro sales Charlie to partnership the post overall concert XCX, the brand. a the and current a lift double-digit rates her gained achieved new for Instagram great Flask's for around of coast engagement Our

custom Our New in sat Best red Flask a the second Artist carpet the winner when and row walk cultural in moment came VMA's with hand. in front late Hydro the summer

our Social consumer. to have engagement eclipsed now summer are target driving is X of on with at examples our These great speed that post relevance the critical post. Brat moving to which of culture,

on design the for packs, accessible line strong from earning Junkie's is storage In having show. opportunities that success Turning launched new daylight everyday line extensive Alliance Ospery by print After Best high-quality while removable affordable category consumers Ops photogear. maintaining is gear extend innovative research and to new leading price. color brand. Outdoor in strong U.S. replace and photography around the and environment. rooted brand Award line. with its the built us Osprey and even for of Show consumer photographers softened. in designed its extended continues materials to price also for top support engagement durability Ospery an content is of lid, in this Osprey, The photography line testing padded and offering adjacencies. distribution industry, exciting accessories active and lifestyle in lid great is and of an share has camera new asking Photo the to the accessories received July. market economic driven need Gear a creators to path and photography case new obsession to from our response This line, backpack and we caters The offer is years consumer out those A by protective which its The to line in continues tremendous current technical that consumers point example

& Beauty to Wellness. turning Now

brands performed particular and business while flat, and Braun of widely our above in wellness and remain with respectively. have higher #X U.S., as and overall the relatively Vance demanders and through much outperformed noted both the August, the U.S. year-to-date, and in POS. the illness media, and Fiscal remained [indiscernible] category Our thermometry increased the rates Vicks #X gained has by They thermometry, share. strength expectations July in

Vicks In broad gained in humidification, thermometers addition blood the expanded Walmart at to remains new Braun #X soft, also or Costco position. has maintained monitors share its and on CBS, distribution We in category while Walmart. pressure

seeing enter As the its season are been serve Water brand also consumers at peak we cough well Walmart, inventory the Filtration, as positioned is to where customers presence. progresses. season, for In and and flu our PUR the we POS positive cold has growing

see are in continue brand and and For POS our opportunities actions brand-building framework. the where and brand the across leveraging to see new softer to taking Beauty, revitalize we insights we lean portfolio consumer meaningful

bold new allow added the received marketing play. tools more of repositioning well this XX very dabble, campaign than on Drybar of new success. has hair The quarter the Drybar perspective support business with rate. fresh poly last long-term focuses tease of drivers the and brand leadership rollout is as example and I our the for an social help began we marketing glamorous of July, this that twice engagement are We campaign to complementary content mentioned a styling our campaign been also and fun evolving over media excellence. in We that of historic that marketing up where products and consumers recently set to the with center targeting new

market our share continue products. for opportunity We to see

is that We are Okay. gaining pleased market Curlsmith

& to and the of wash launched extend a is This Shine day. quarter, refresh to crafted Jake define Mist, Curl result Curlsmith which refresh, moisture

line, and Drybar This next Revlon The Last quality [ have product that the were more remains glass liquid volumizers in thickening quarter quarter, who leader a up on item. to style competitor line, In value best and XXXX sold cleanser share of XX% more Duo addition, for campaign we want year-to-date, without followed Curlsmith Award average, Xx popular this in bank. big marketing as the we ] largest Beauty highlights of of Drybar additions hot Revlon for launched we new we a prestige and month, appeal our an salon that Revlon earned conditioner. with unit One-Step the group. savvy similar air to FrizzeControl with consumers breaking reframe the extended competitive our a results retails price fiscal results.

X% exclusive regions as Flask an Sephora in London, treated U.K. international to where boot points. styling. Internationally, almost -- board at bus see tools well select performed were Outdoor consumers the of strong and accessible driven our Harrods X department U.K., in portfolio businesses Curlsmith also Walmart you'll that but expanded appreciate continue Outdoor's between & in multi-branded only campaign price expanded the Lewis tour Smith John sales our Home stores collaboration Hydro launched and has distribution the key not to where a on part the great the momentum OXO at City of its sales footprint brand in greater the all most positive find with and Boots expanded see to Go up, stores Japan. key into in pop-up and U.K. flagship in vehicle BHD Batter and markets, has also Revlon up a contributing Paris' leads expectations Harvest XA, the famous growth. in the with grew in care teams. expanded all We retail in stores. in and consumers by outperformed pop In Drybar the

we of discussed are reset Osprey a that Sports Germany is sporting well blocks portfolio We remain assets the and building strategic where fully but in this magnitude obsession, display scale a represented data are goods to These large remain confident leading just a choices, last time. level embracing footprint. leveraging solid committed prove foundation and revitalized with our few increasing of global being and Stepping for be examples the consumer Minix how quarter of Schuster, our our growing I we back, retailer. we change our shop, everything and our takes to winning that future, analytics know do. in shoppers we next through will and

We to long-term heard top and about progress sustainable are growth. the today. significant you road making evidence back on line

I want our across dedication for for to and company brands. associates thank global and Troy Helen exceptional passion of their our

Now over it I turn Brian. will to

everyone. expectations pleased of results for sales, quarter net to above that adjusted I'm EPS were Thank second slightly our end you, Noel. report the Good and adjusted EBITDA. morning, high

quarter. minimal facility completed believe remediation a position fiscal efficiency the 'XX. to related substantially the of efforts automation the we to end in in that we achieve levels by now are with mentioned, distribution at the to We sales Noel system Tennessee our impact targeted As

also rightsized year-over-year our in our growth maintaining planned the 'XX structure second of investment, in increase net expectations cost fiscal quarter. We with basis while points XXX incremental line approximately our an sales

we achieve long-term discussion second I'll to these our to a in do While executional challenges more we our solid results progress quarter work considering detailed overcame results. more believe present to we quarter. on from have we the move now of know goals,

a offset purification. humidifiers and OXO The primarily in in X% grew beauty Hydro Consolidated primarily declined retail & quarter air originally of environment from driven consumer decline distribution was as Home net in X.X% of reduced sales wellness, due our due decrease plants, were challenges from almost facility in ahead trends by replenishment purifiers decline impact softer slight improving automation air Outdoor our strong partially at a to sales and reflecting slightly primarily year-over-year, a appliances in demand, the sales second lower and less expected. competitive Flask, Tennessee customers than and hair Osprey. hair and by sales to expectations

international obsolescence with Consolidated due Home favorable sales & and expense a continued the was to perform product primarily Outdoor mix and X%. gross XX.X%, unfavorable was customer Our business of year-over-year. XXX to well point inventory basis almost margin growth profit less within decrease

last and in costs by estimated These start-up referred operating planned factors a points basis to impact was GAAP driven lower year. unfavourable quarter were an the margin same reflects Decline partly X.X%. partially new costs, commodity primarily investment offset of gross incremental the facility. point driven operating by also margin On to growth basis Pegasus. our by XXX from issues basis of the was decrease XX lower margin adjusted operating X.X% I to product with automation for points Project compared earlier, XXX X.X% and period The basis, additional profit the an in impact leverage. associated distribution and decreased

and operating and investment. basis, Outdoor product decreased and adjusted X.X%, expense, a Wellness obsolescence margin investment, offset partially a operating customer distribution the personnel growth Adjusted mix of due XX% & planned lower These margin referred On basis for commodity expense to points unfavorable impact and leverage. to product unfavorable earlier. points decreased to to & and less XXX unfavorable year-over-year factors center Beauty growth segment incremental primarily incremental planned to operating inventory basis favorable due were by lower costs primarily the Home expense overall I XXX

the an was our quarter decrease was expectations Non-GAAP for $XX $X.XX of income diluted average outstanding operating an our various tax in or million million, slightly share. reflecting of The rate during adjusted $XX.X mix below of year-over-year for year-over-year weighted tax of items. higher diluted first adjusted flow in effective compared share, was EPS an income tax Free to expense. cash was per offset editions the rate working lower interest Our tax last in capital partially in fiscal and $XX.X increase impact to $X.XX increase in enacted income tax and quarter due legislation increase but our the expense quarter the 'XX. the diluted increase to lower due XX% XX.X% second a primarily and beta adjusted needs. year. the Net per was shares by discrete Shift million in

a We quarter. debt to of the million, of ended $XXX the $XX second total sequential compared with first quarter million decrease

or to our at ratio reviewing Our from of business end authorization. capital The was return regular was end deployed first with repurchase the of second net otherwise the authorization shareholders, keeping of and growth process a At leverage our our outstanding quarter. acquisitions. to X.XXx approved quarter, X.XXx existing the of capital part in core intention the to as compared of allocation of strategic million Board's $XXX the not Board stock our authorized

'XX. free Turning expectations and now net maintaining by net for for EPS cash fiscal to and adjusted sales our sales, for consolidated We're flow our EBITDA leverage updated adjusted have outlook our and expectations segment, ending ratio.

more of of headwinds cautious promotional remain and external remain. softer We activity variable replenishment and pressure increased uncertainty macro retail and

reserves provide the interest through some the for many likely cycle a that to will move will federal we lowering leaf consumers. begin believe to rates, take time to While some, benefit

the also year. shorter and We this year-over-year expect Thanksgiving from Christmas [indiscernible] headwind a between holiday

shipping $X.XXX decline between approximately to billion sales $X which issues to challenges our unfavorable implies first disruption of distribution We due impact facility a of in million the continue ERP Curlsmith X.X%. X% This net expect automation sales and start-up net the quarter. includes $X.XXX to integration from at the in to billion the the

out-license first home by terms which disruption of sales X.X% segment, of our the of growth impact and X.X% In we and the continues related a the distribution our net of includes approximately in wellness the a year-over-year of shipping X.X%, X% to outlook an one and facility X% wellness expect now with which to of respect brands. decline our and to to during Tennessee include expiration outdoor beauty to of headwind relationship and quarter of decline

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

basis full our EBITDA approximately continue of XXX million to year-over-year, from compression to the year issues adjusted expect approximately basis We start-up coming to of $XXX at million XX facility. margin points with XXX distribution $XXX implied automation which points

our product business spending incrementally to points. brands plan to continue increase basis health of in continue investment for year-over-year innovation the back growth invest into and and of roughly XXX and We long-term marketing for a our

We continue environment expect and a gross of our mix. less some given to margin sales more compression promotional favorable expectation a

we expect gross still year-over-year However, Pegasus. margin expand to to due project

Finally, from the began be to leverage we expect in we we to which of offset anticipate lower second rightsizing cost in by quarter. the implement our decline that operating revenue, structure the

expense XX the First of further no assumed the point in reduction reductions remainder largely included quarter XXX now the Fed's interest basis with outlook expectation reductions have 'XX, rate remainder fiscal 'XX. September. we fiscal And in of line basis the point which for of for

full year expectations unchanged. expense interest As remain such, our

GAAP effective the Which distribution adjusted and year million $XX XX.X% XX.X% to for rate tax facility. full intangible a $XX effective expect non-GAAP of between of for rate XX.X% fiscal capital Tennessee fiscal 'XX. expect million remaining tax million the range technology equipment $XX We to expenditures includes XX.X%. of and our with asset associated to $XX and We range of now million

XX.X% XX.X% million to range now to Monday's million We implies flow yield of using of to share which $XXX price. closing flow cash free a free $XXX cash expect

as by to of our between start working Our year. fiscal estimates CapEx be a net for we 'XX. expect slower year credit needs for the and trends in lower agreement 'XX cash continued and and revised in end the leverage X.Xx free opportunities the ratio support We operating improvement flow capital our X.Xx the defined reflect the expectations fiscal now and see of to remainder for to

to In X% to year-over-year. we in terms range cadence EPS sales diluted X% range for of the decline decline adjusted 'XX, of fiscal net XX% And quarter third of the a year-over-year. the in X.X% of expect

to the As diversify an we impact in the it beneficial of we of to potential thought China on tariffs our look our production towards and outside incremental future. mitigate efforts 'XX, update fiscal provide

this goods to cost With incremental XX% have the of of XX% to our step first to of exposure sold. we consolidated strategy, reduced arrange tariffs

more launching targets 'XX. exposure now second to initiative the of coming when fiscal reduction our are important We our . strategy, provide by 'XX this fiscal a further outlook of the April. to we We which of end our step this plan share

in a future Finally, reflective until further of I'd thorough success. of with performed we the hold brand like further equity that the to position to were process of the not rigorous process to to notice. performance. divest Year-to-date, and put valuation one the its we private is strategic decided intend potential bidders, evaluate long-term offers believe feel the portfolio business health expectations improve and process to of update have the After continue line We received we current on to there the both on We our includes you to our potential businesses. to and business. of structure largely assets consistently the us has our ensure and

in In closing, reset core business long-term progress we position are to and more and we have brand invested and leverage 'XX us capabilities track with and fiscal more Pegasus improve our will step-level well the am investment, fueling that this achieve Project revitalize a are and are and to investment our innovation to increase making data-driven initiatives believe decision-making efficiently. and pleased objectives. on in our on I

using our we cash will a capital drive whether flow continue significant approach, down balanced make repurchase free use shares or strategic We pay our can to we acquisition. deploy accretion, believe debt, to which

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

Our Instructions] first with question [Operator Peter from line the UBS. Grom of comes

there are in coming to when first of outlined question was maybe -- versus a of some that maybe saw from And it things I out just innovation about better was you of But about much anticipating outlined? just or Is it path less ahead, -- lot from and look the a then the or last what's you I category my to was everyone category think quarter you're well. that perspective portfolio. think and was the start, both parse to the upside you actions the of hope quarter. kind operator, wanted doing Thanks, May ask we and the great -- Maybe embedded a on you going here going to in really you more seemed the what as hold. were way in quarter how across

share Can what's of in from outlook a you embedded standpoint? the maybe kind today category

Yes. from Thanks, hear Peter. Great you. to

on look balance of would But I at as both. say, there's performance the So our my as I'm of that overall, been we're kind I We've of a performance putting little we frameworks say, the brand the versus of putting brands. with our the bit remarks, investment year there's in some target our of incremental brands. behind really hard I consumer, impact and place, highlighted building some -- the in category, understanding pleased the the would work really at of seeing

OXO brew I've Flask today Hydro the bottle, come Curlsmith, that of products lot the big that on touched a that out brewer seeing products are new well, travel extensions from out. coming new rapid You're performing are

and the a about products well Hydro an or lot new another, across they're of So got doing Flask Costco. Distribution impact. I we've talked really making in gains portfolio, and performing

to and the performance pleased of Walmart. continue We with really be OXO

bag. from start doing portfolio. seeing our would the come And so that through results work of across a say we're all been the mix Category-wise, it's we've to I'm I

lot a categories. of across play We

for we're -- the still new little little some storage, A share mentioned bit bit out. softness got like of food have where of technical example, drive packs. as share in kind I bit categories So like would packs. the a softness a little technical our there, we remarks, leadership is kitchen of see category we've in flatted thermometers in still swapped a utencils, outdoor has my some still but say soft, poor I out holding

it was I'd improving. is anything, going say performance our I to if So attribute to

that. I terms I view update assumptions for did that we last and But similar remainder very do had attempt we view category the we every would quarter, year, just say in do it our of to of quarter. the add, the Peter, that to was

I see change -- assumptions. driven from being category no So major no

and That's a to thoughts in something this, you're Or here? just a just on but is Okay. short if longer-term missed this how more helpful. complete the you're thinking about then this program? timing? super relatively I buyback, And of any looking I apologize time Is frame on

really. Board it there's was housekeeping it August. the This our -- of authorization refreshing really No, good was just I'd it at say had expiring the on no because of views end

so a that have of at, getting them those And authorization see the to really of it to we'll as look in then going our refresh historically and execute kind was it set we level back we opportunities forward.

So burning views housekeeping. and really just . good no

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

slightly just softer imply PS sales to half the if the half So it's that embedding a just back on to driving outlook the would go I year. or just to of sense what's that [ in whether for is back implied wanted more it want back ]. of get the given I maybe maybe QX, -- conservatism? the

to hear from good Yes, Rupesh, you.

Tennessee So Brian at want we to anything didn't Brian, the in the flow there. his feel as distribution quarter anticipated, called remarks. helped you X, through we And enough of impact look, revenue center from That's the less And saw add. in a it that difference. when that from quarter. us out then really looked was we we to

the say center. would had of we from at $X of I million, expectations approximately our are $X million disruption end distribution and we planned Yes. for really high the by about --

raising felt to guidance more consider in, kind say, expectations our for So in really it of all enough of the I for was would met we us like that second half. not regard and

question. maybe follow-up my just then And Great.

beauty gotten the growth? to to some efforts -- do and something headwinds at back competitive how the the you guys of there's category? Like look the timing? some there. with that we just any that improvement? are terms there out the drive drive more potential efforts turn say category clearly, would this timing as you Maybe a think in Just color Beauty key is consumer of And category, also take there. about in more What could quarters Or to macro few it's

it including say the detailed work few we really with would did, I in that Beauty, Yes. doing One things. me quantitative that foundational a of brand-building satrted consumers. segmentation framework for category

So we those are we brands the different and understand how against portfolio our are, what of our position do consumer segments. who consumers really segments

forward. And and plans and and kind & the a using their some move for using those retailers. that completed We of at we continue Beauty meetings insight lot to Wellness of some of fresh year of of to in so key to all perspective. the start frameworks that our are the bring new did brands leadership We've kind of in foundation now some had with build

Big pinning power really liquid customer we're think feedback that you're I category, a what hitting new getting positive that fruits the on growing some of claim growing really high-growing the a they're Big with on input buyer Really share a So drive I are performing, pleased getting looking in already consumer or I commented talked producing XXX%. labor bright bright products real like that liquids or and come the seeing all on spot. market of of the lot they're volume some into market -- Curlsmith, extensions on consumer the are And how that's with insight for. a Brew seeing, of about that care of with hitting a that -- of what spot today. Brew.

Revlon that came brand-building reframing, we The framework. just Volumizer which So that's some launched from directly out. standing value

the They out want of so there a value-seeking but don't bank. right there's to great right? that quality want are that performance. they who Understanding group consumers break now,

hot like than So and they're Revlon Xx sells next the X more leader a largest competitor. still air Revlon stylers looking still particular in product that share It's the step. item is a for more

our really the it's out marketing so can us putting choose So more there consumer often.

will the those pipeline. be to So innovation that continue We've some got do. we in more the

think we're out end the product something about year that standpoint. new the there's from towards a I come excited will of

with to marketing. are are new be going steps, retail brands positioning the the -- the marketplace those our But it's It's It's the in products, our partners effectively. those right?

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

you just what were of saying kind to there. wanted on I up follow

but can the analytics this done? like increased you of and have? brand learnings learnings are or And from tell data investment, us increased outlook, as data et in analytics also so capabilities. you analytics You've result and key What increased your investment, changed you you've and what from data processes far? you the have capabilities in have the your now a what cetera, investment

I Yes. everything felt Thanks, me. that inform do. a big better to using we for data Bob. really That's focus by will really and analytics we be been

every importantly, and helped going but portfolio, media of into planning using who incremental we're understand it very the we us that allocating so then we're brands brand-building and the with And we really go Project that that segmentation time use. and Pegasus then mix to after brand. and all also consumer generate. And consumer to the audience high-growth that right understanding the our is to did It's clear on a who marketing our ever in framework ad started looking tactic target that so our segment we're return spend insight as sort reach foundational single robust prospects by first that the allows model across

we're able portfolio, to So our optimize also the brand tactics. but across the spend across importantly,

we against look really from optimize lower looking the investment So and that and upper and at reach to we're get. that funnel on return can

of completely then and spend. So measuring talking of it's for building we're really market that to a Troy, Helen way how of impact who a the we're new the

stuff. right a give setting touched versus Great. Okay. and then, Could in sense I retail and years? guess, shorter guess, you And season, us environment I expectations prior I how Brian, now on you holiday Thanksgiving up versus, the is the later of think

which got pass the I mean you environment, say for year the kind season. remainder an we would a before of is I expectation of really to softer there Yes. of holiday the

expectations So softer, I but embedded I would say oriented in the more expectations and value have little bit that like . feel maybe already. we a are our

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

OXO. -- have You for example, categories had normalizing mentioned that several several been now, quarters

near about space, how levels as online or more more that think those categories advertising there in how are you either do And challenging whether talk on inventory focused going your you promotional Is -- you to brick-and-mortar are light the -- to expect on and more categories? term? key how retailers of more macros tighter in shelf can relates it behind So be them? in do we to that manifest about particularly

Thanks, say COVID. the were really those to I Yes. normalizing would impacted comes are it Olivia. that the when by categories, ones

think about if you of continuing to So kind kitchen utensils, were category we still see that decline.

the On or now, a home more that. like basis, acting meal things like holiday surge of of that of line were category more a gets of we I becomes new activity. formation normally. product prep, say kitchen it's OXO lot normal coming would by of forward the utensils back-to-school really driven meal processing, off It those COVID kind particular As COVID

out in impacted to right will I how OXO of spend we're choose say on consumers money that dining eating way. also their kind by or now,

bit purifier, like So more, little positive to choose if about out normalization, as are spending bit OXO. a Thermometer a they're less that consumers how big was a being had air a the COVID. more the eat and that's brand diligent a they normalization one post for big another

those normalizing. air that's of similar think is are say another occurred category them dry from bit yet normalizing. food a -- a a That's on still storage. one normalization standpoint little would I I has still fully still couple

we terms I right now the think retail anything in don't standpoint. a look, see retail unusual from I inventory inventory, of hugely mean,

less The thing marketplace. performing well who in a that little are is retailers the we maybe see bit the

their inventory to techniques different using manage Our quarter-on-quarter.

in a less it the we've than past. little we category. to total manage category a store So by They at level have maybe visibility got bit versus tend

a time issue that marketplace things that see to little time that we bit I so that that, otherwise, impact be And see don't those us right inventory a retail the huge in now. can are from -- surprising --

some guide And course, holiday, of now to it. and reasonable of recognizing, one from versus at the just into building you year. help year of get point you sort end visibility have the year, of blocks of But the Got any that helpful. other? just sort fairly to to about halfway last around thinking blocks likely end this the the the the one range you're That's shortened then maybe building period other holiday you are us understand can the

change talking Olivia? and end high the low the between our about would end guidance, what you're of So

to get the to already the outlook, to trying just versus the your high lower of and end things... outlook Basically, looks of given like other a of end what understand the that parameters couple the are you presumably holiday now

Okay. would would have sight we our of say a before, hard on of and current that the would at to be That try from what building that helps. throughout thing line trend declining. And assume would year. high to. I of said POS we've the we've the clear as look trends end remain -- guidance say that current assume trends the blocks the would Yes, the taken would really consistent change -- not there be POS I try that big remainder trends

So elections from where would they would that factor of were, that's be us lower if the were but then the a end the that more range, to it. decline put really towards

we've our But that POS, us of slightly lower about innovation we to not leaning down we or that's end leaned they that. trends return building opportunities sight distribution line pull current respect product closer we from gains POS of assumptions so that assumed because on data we've outlook, have marketing it that, say on the the high support blocks, respect didn't to range. such forward as on or our or have if lower that's In really investment with we there. the were lower the could would feel really made forward good to our incremental spend, I our haven't even with end towards of the new

that's And so we block. building think a tangible

or be Noel, the anything? has in add to want it think environment. really change a a major macro you to trend I do So major change in

think that's we've half said the followed distribution before, the back then block right. would spend. I incremental as by, marketing biggest say, building I is tangible some the And No, and in aviation .

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

Yes, thank you.

of guess, to originally, that benefit the quantify about second would that half noise DC benefit -- half gained cadence quantify despite original there XXXX lot first think way that, the this to half. back of your in So idea that I -- any this the on distribution of a I the whatever, was into or of if there all any -- distribution other is carry the decline growth Is implementation that first you occurred or from to the way fiscal? had original and we in original go expectations

what to smaller or distribution you've is bigger benefit be than kind if I'm then you second understand already asking? what the can had, And of the in half,

the the than prior should bigger year gains we gains in second Yes. first. the I the getting year answer distribution The from just this carryforward second question impacted are year. be this first half of that half of the

distribution have really in 'XX we distribution, than year would I 'XX. will secured that haven't more say, it. we fiscal will So sized new incrementally year to secured apply had And that apply we fiscal

not comfortable So I that right now. be giving would

We publicly. it haven't sized really

for have 'XX. And that 'XX, we fiscal new about of fiscal 'XX. respect we carryover impact that's the the distribution so on dimensionality to talked have year with But

will than haven't gains fiscal 'XX. fiscal comment that I But the that. 'XX We really bigger disclosed are

limited store huge a It's a Ulta was That's we our of regular curious not very a And it's there. cross I checked your selection at did target, space that array within shelf Okay. about your dryer when helpful. store. But brands. then checks, notice the -- sort in had Ulta in nice like smith we of

that? a you Target? the of within you Ulta can positioning that sort And rate? talk So does about I growth talk and is needle can benefit Or mean whole that move like all? at . about the to it just

availability. would Yes. difficult Thanks, Linda. I say, look,

a as widely benefit many our in available far is having is brands my view. shoppers as So possible

limited I lot mentioned, even of lot the there's helps It going a brings think target. and some So a a Curlsmith and of see through Drybar there, our Ulta assortment the there's Target people, -- positive of prestige just that. thing. I in you like as liquids premium footfall do There's that's

to a be I in way is and one it break see assortment so having And whether is to part from able the we or store specifically there a store out mover in positive. mean, a that the what's needle don't coming that of know not that other. versus I being it's

in would say, brand in front all our for stores. like thing a Target I great us. But allows within of be I a store Ulta it It's shoppers think brands, to subjectively for Curlsmith that at just it's and within

Coles, And Sephora So perspective. positive a similar it's idea. within similarly, from my the all

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

to what I similar expecting give you we you're was them be you're you're planning could if promotional and saw all to year year-over-year you consumer then maybe expecting of just can you holiday maybe And wondering on just kind spend how expect the to season? how for about spending. you that on some it the going thoughts just Do talk season, the if items? into expect cadence discretionary also

Susan. less I there's Thanks, general, talked in Yes. would week. as about, say X holiday, we

Prime Day think right happening I of kind now.

looking we at. indication. think leaning I us I think the to some bit that's give a see sheet going what a everything challenged. consumer to the of continue are in holidays It's So consumers run-up to where they're little continues balance and to be hear, to

who will so similar money. are they their gifts they're meet And I choosy but spending, that think think holiday items to. where delight They're that the really to look season. be to they're a for specific in will or And how need really on it items spend giving going think being the consumers they I bring

so sentiment into the macro I is holiday. carry think over -- to kind of that's that And going

see promotion-wise, looking shopping. where for really again, What consumers are value. I are think I is consumers

So things doing brands different seeing that. us value continue in to are support. things of we they're year. or terms when discount. Walmart, planning, our I those consumers into kind we'll are Day well. the it and dramatically across year anything see you're [indiscernible] the events coming events for key our comes those in promotional And key promotional the depth like a those windows to that retailers all of interested of doing like think in When don't have good like plans of Prime of doing And in customers places I'm getting Costco think they I'm shopping that when really those and retailers

assortment our now, what would the in prime days we've the broader for I say, right example, done than breadth a past. in little bit

that a more pack. the lot because categories So Osprey everyday lifestyle into is time. diversifying the of the for like Pass, Day participating But first Osprey adjacent is

we've tentpole items it's make important event. that got sense so participate to there, and an And just

doing look see are to as opportunities in at consumer now. don't where term major continuing of us discounts where I brands expand to into So there light categories, us participate events, in right see our these I is the but

more. very That add if was I helpful. X Maybe could Great. Okay. just

half, could you and talk half? quarter between fourth and guess, third could of If and the are you about talk just if Maybe first takes also about the margin you the back cadence expecting gross I and, any the differences there? versus the puts

of we going inventory because I Yes. to necessarily then higher of would there normalize if and a and year-over-year had margin that expect like little going essence we launched say DTC, below just think there we did you had were QX, a we margin couple repeat and our I is closeout. on see QX lower then Costco of to in was -- little that a bit which we expectations, bit compare things our a compression gross wouldn't

all and half. margin, year normalize in that weighed second the but slightly the more above prior maybe and those back year to expect on prior So I get towards

And sorry, was question? second what the

quarter the third then That between difference was -- and first well, well? the I guess, as just fourth the half and

Yes, above. both year, slightly quarter with similar, Okay. prior maybe and pretty say and I'd consistent are very third fourth

Ladies any comments. Thank that and question-and-answer to for I'll concludes final management floor session. back turn our gentlemen, you. the

all you joining us for today. Thank

in business we the on fiscal shared and future much. significant forward believe growth, our taking year. sustainable you long-term we top progress so path line are on this look revitalize right updating to to we're Thanks and really the we We all to reset our making the As progress steps calls.

concludes conference This you. Thank call. today's

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