Osprey backpacks outperformed in the first quarter of 2023 for parent company Helen of Troy.
Noel Geoffroy, chief operating officer at Helen of Troy, said in a conference call with investors that Osprey expanded its No. 1 share position in U.S. backpacks, driven by an improved inventory position compared to fiscal 2023 when COVID-19-related factory closures jammed up supply.
“We also benefited from new product introductions and accelerated demand in the travel category both in the U.S. and abroad as well as strong online point of sale and replenishment,” Geoffroy said.
Gains were driven by product innovation as well, including a spike in demand for hydration packs. Osprey also extended its technical pack line.
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 helping Helen of Troy to expand internationally.
Osprey, at the time of the acquisition, generated roughly half of its sales from non-U.S. markets.
Helen of Troy’s Home and Outdoor segment, which includes Osprey, Hydro Flask, and the OXO housewares brand, reported sales of $217.1 million in the first quarter, down 7.3% overall.
Hydro Flask Hurt by Tumbler Preference
Hydro Flask was negatively impacted by a shift in consumer preference from bottles to tumblers, where the brand has a smaller presence.
“We continue to see consumers shifting from bottles where Hydro Flask is by far the leader to the tumblers in the quarter,” Geoffroy said.
In response, Hydro Flask executed a soft launch of a new travel tumbler on June 21.
“We are excited by the strong consumer response and are optimistic about growing this new addition to the Hydro Flask family,” Geoffroy said.
Helen of Troy Q1 Financials
- Overall consolidated net revenue reached $474.7 million, down 6.6%.
- Net income was $22.5 million, down 8.2%.
- Consolidated gross profit margin increased 380 basis points to 45.4%, compared to 41.6%.
During the fourth quarter of fiscal 2023, Helen of Troy made changes to the structure of the organization as part of its global restructuring plan, Project Pegasus. The project consolidated the company’s beauty, health, and wellness businesses into a single division.
