Consolidated Helen of Troy net sales revenue increased 10.1% to $474.7 million compared to $431.1 million, driven by a core business increase of $46.0 million, or 10.7%, primarily reflecting growth in consolidated online sales, an increase in brick and mortar sales in the Housewares segment, higher international sales, and an increase in sales in the appliance category in the Beauty segment.
These Helen of Troy factors were partially offset by a slight core business decline in the Health and Home segment, the unfavorable impact from foreign currency fluctuations of approximately $2.3 million, or 0.5%, and a decline in the personal care category within the Beauty segment.
Consolidated Helen of Troy gross profit margin increased 2.0 percentage points to 44.2%, compared to 42.2%.
The increase is primarily due to a higher mix of Housewares sales at a higher overall gross profit margin and a favorable product and channel mix within the Housewares segment.
These factors were partially offset by a lower mix of personal care sales in the Beauty segment.
Consolidated SG and A as a percentage of sales decreased by 0.5 percentage points to 27.5% of net sales compared to 28.0%.
The decrease is primarily due to lower advertising expense, the impact from tariff related pricing actions taken with retail customers, the impact that higher overall sales had on net operating leverage, and the favorable impact of foreign currency exchange and forward contract settlements.
These factors were partially offset by higher annual incentive compensation expense, acquisition-related expenses, higher amortization expense, and higher freight and distribution expense.
Consolidated operating income was $79.3 million, or 16.7% of net sales, compared to $61.3 million, or 14.2% of net sales.
The increase in consolidated operating margin primarily reflects a higher mix of Housewares sales at a higher overall operating margin, a favorable product and channel mix within the Housewares segment, lower advertising expense, and the favorable impact that higher overall net sales had on operating expense leverage.
These factors were partially offset by higher annual incentive compensation expense, acquisition-related expenses, higher amortization expense, and higher freight and distribution expense.
The effective tax rate was 10.3%, compared to 6.9%.
The year-over-year increase in the effective tax rate is primarily due to shifts in the mix of taxable income in Helen of Troy's various tax jurisdictions and increases in certain statutory tax rates.
Income from continuing operations was $68.7 million, or $2.71 per diluted share on 25.4 million weighted average shares outstanding, compared to $54.3 million, or $2.06 per diluted share on 26.4 million weighted average diluted shares outstanding.
There was no income or loss from discontinued operations, compared to a loss of $4.9 million, or $0.18 per diluted share.
Adjusted EBITDA increased 26.6% to $94.4 million compared to $74.5 million. ■