Helen of Troy (Nasdaq:HELE) is one of those surprisingly volatile stocks that seems much more turbulent than the underlying business would suggest. After all, how much year-to-year volatility should there be in curling irons and cookware? Nevertheless, this is a stock that has given investors numerous trading opportunities over the years.
The Quarter That Was
The company's fiscal second quarter saw revenue growth of 8%, as the company's houseware business (fueled by the popular OXO brand) grew 10%. In comparison, the personal care business (which is about twice as large) had growth of 7%. Overall, that was a minor miss (about 5%), relative to Wall Street expectations.
Although the top line performance was a bit lacking, the company more than made up for it in expense leverage. Gross margins jumped more than 300 basis points, and adjusted operating income was up 34% from last year. That in turn meant a better than 300 basis point improvement in operating margins, and margins are once again on the higher end of the company's long-term historical range.
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http://stocks.investopedia.com/stock-analysis/2010/Helen-Of-Troy-Has-A-Few-Pimples-HELE-PG-UL-CHD-CL1008.aspx
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