09:27 AM EDT, 07/09/2024 (MT Newswires) -- Helen of Troy (HELE) reduced its full-year outlook as the company recorded lower-than-expected fiscal first-quarter results amid weak consumer demand.

The consumer products company now anticipates adjusted earnings to be in a range of $7 to $7.50 per share for fiscal 2025, down from its previous projections of $8.70 to $9.20. Sales are pegged at $1.89 billion to $1.94 billion, compared with the prior guidance of $1.97 billion to $2.03 billion. The consensus among six analysts on Capital IQ is for normalized EPS of $8.93 and revenue of $1.99 billion.

"We now see this fiscal year as a time to take action to reset and revitalize our business," Helen of Troy Chief Executive Noel Geoffroy said in a statement. "As a result, we are lowering our annual outlook, which delays the delivery of the long-term financial algorithm in our strategic plan."

For the three-month period ended May 31, the Hydro Flask maker reported adjusted EPS of $0.99 versus $1.94 the year before, missing analysts' view of $1.59. Sales dropped 12% to $416.8 million, below analysts' $445.9 million estimate. Shares of the company tumbled 30% in premarket activity.

"We battled an unusual number of internal and external challenges in the quarter, which resulted in net sales and adjusted EPS below our outlook," according to Geoffroy. "Many of these challenges became more pronounced toward the end of the first quarter and some continue to evolve."

Revenue in the home and outdoor segment slipped 8.6% to $198.5 million. The decline was driven by lower replenishment orders, softer consumer demand and a shipping disruption from the company's distribution facility in Tennessee, among other factors. These were partially offset by new and expanded distribution and an increase in international sales.

The beauty and wellness division's sales fall 15% year over year to $218.4 million, weighed down factors such as a decline in sales of hair appliances and prestige hair care products, increased competition and "shipping disruption from Curlsmith system integration challenges," according to the company.

For the ongoing quarter, Helen of Troy expects sales to decline between 4% and 7%, compared with its prior forecast for the topline to be flat to up 3%. Adjusted EPS is estimated to decline by 35% to 45% in the second quarter, compared with the previous outlook that called for growth.

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