09:02 AM EDT, 10/09/2024 (MT Newswires) -- Helen of Troy (HELE) reiterated its full-year outlook on Wednesday as the consumer products company's fiscal second-quarter results came in ahead of Wall Street estimates.

Adjusted earnings came in at $1.21 per share for the three months through August, down from $1.74 the year before. Six analysts surveyed by Capital IQ expected normalized EPS of $1.05. Sales decreased 3.5% year over year to $474.2 million, but topped the $458.9 million consensus based on the same number of analysts.

Shares of the company spiked 13% in premarket activity.

"We are pleased to report second quarter results that were above expectations," Chief Executive Noel Geoffroy said in a statement. "During the quarter, we took decisive actions toward our long-term strategic initiatives, including strengthening the core and further shaping our growth portfolio."

Revenue in the home and outdoor segment edged 0.8% higher to $241.9 million, driven by higher sales in the insulated beverage-ware category and expanded retailer distribution in the home category, among other factors. The beauty and wellness division's sales fell 7.7% to $232.3 million, amid a decline in hair appliances due to softening consumer demand, shifts in spending patterns and increased competition, among other factors, the company said.

"In addition, despite persistent macro headwinds, we achieved early results on our efforts to 'reset and revitalize' our business, driven by improved brand fundamentals, optimized marketing and innovation, and expanded distribution," according to Geoffroy.

Gross margin fell 110 basis points year over year to 45.6%. Selling, general and administrative expenses rose to $179.7 million from $179.2 million in the prior-year quarter.

The Hydro Flask maker maintained its fiscal 2025 guidance for adjusted EPS to be in a range of $7 to $7.50 and sales to be in between $1.89 billion and $1.94 billion. Six Capital IQ-polled analysts currently estimate normalized EPS of $7.11 and revenue of about $1.9 billion.

For the ongoing quarter, the company anticipates adjusted EPS to decline by about 3% to 10% and sales to be down roughly 1% to 4.5%.

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