Helen of Troy CEO Julien Mininberg updated ICR Conference attendees on the progress being made with Hydro Flask and Osprey, which are part of a portfolio of consumer businesses that Helen of Troy owns.
Helen of Troy acquired Osprey in November 2021, paying $414 million in cash for the maker of outdoor backpacks and daypacks. The deal was seen as complementary to Hydro Flask in growing Helen of Troy’s reach in the outdoor space, while also expanding internationally.
Osprey, at the time of the acquisition, generated roughly half of its sales from non-U.S. markets.
“So, we’re going beyond the bottle in Hydro Flask,” Mininberg told ICR attendees. “And within some of the new cut-and-sew capabilities, like that single backpack bottle pack… an example of synergy throughout the Osprey acquisition.”
The CEO shared a chart at ICR of new products from Hydro Flask, illustrating the aim to expand beyond the product lineup the company is known for.
Hydro Flask isn’t the only brand seeing product innovation.
“Osprey itself has a significant set of new products, both in technical packs and in everyday packs, and importantly now also in duffel bags and other travel accessories. But all on the tough side,” Mininberg said. “These are not the things that you take to the lake for the weekend. These are the things you take on the canoe trip or on the mountaineering expedition.”
Helen of Troy is in the midst of a restructuring plan dubbed Project Pegasus, which it announced in October. Plans call for, among other things, layoffs that are expected to be completed by March 1, and the consolidation of the company’s beauty, health, and wellness businesses into a single division.
Helen of Troy, for the third quarter ended Nov. 30, reported net sales of $558.6 million, down 10.6% from a year ago. The company had net income for the period of $51.8 million, down from $75.7 million in the year-ago period.
The Home & Outdoor division, which includes Hydro Flask and Osprey among other brands, recorded net sales of $228.9 million in the recently ended quarter, down 7% from a year ago.
Osprey was called out by the CEO during the company’s earnings call with analysts this month as helping drive net sales growth on the international front and performing “very well” in Europe.
Mininberg described the operating environment in the third quarter as “difficult,” but noted progress on its restructuring plan.
In the case of Hydro Flask, the company is seeing a shift from brick-and-mortar to online, which was noted by COO Noel Geoffroy during this month’s analyst earnings call. Online sales for Hydro Flask were up and helped offset the decline in the physical store channel for the quarter, with the brand’s market share over the last few years about flat.
“I think that’s a function of shoppers shifting more and more to online, especially for items like the Hydro Flask,” Geoffroy said. “As we look at Hydro Flask over a two-year stack, we do see the brand growing and strong. And so, we still are very excited about Hydro Flask and its performance.”
Shares of Helen of Troy, which had a recent market cap of $2.6 billion, are down about 3% so far this year.