Shares of consumer products company Helen of Troy Ltd. (HELE) tumbled 12.9% to $115.92 on Tuesday after it lowered its fiscal 2019 sales guidance.
The El Paso, Texas-based company, whose brands include Revlon, Braun, Honeywell and Vicks, reported third-quarter earnings of $49.5 million, or $1.88 a share, compared with a year-ago loss of $30.4 million, or $1.12 a share. Excluding non-recurring items, adjusted earnings per share from continuing operations were $2.40, down from $2.50, beating analysts' expectations of $2.36.
Revenue increased 2.4% to $431.1 million, beating Wall Street's forecast of $425.8 million. CEO Julien R. Mininberg said in a statement that investment leadership brands "continued to drive top line momentum in the quarter."
"Our Health & Home segment faced a tough comparison to the strong third quarter of last fiscal year, compounded by a slowdown in China e-commerce and foreign exchange headwinds," Mininberg said.
The company lowered its fiscal 2019 sales guidance range to $1.535 billion to $1.550 billion from $1.535 billion to $1.560 billion.
"As expected, this quarter, we also started to feel the impact of tariffs ahead of the pricing actions we began implementing in the third quarter and which will largely take effect over the next two quarters," Minniberg said. "Retailers and consumers are just now beginning to digest higher prices, which could affect short-term shipments and consumption. We believe, however, that our pricing choices are right for the long-term health of the business."