Helen of Troy Limited (NASDAQ:HELE)
CAPS Rating:
The Company is a global designer, developer, importer and distributor of an expanding portfolio of brand-name consumer products. Its two active segments are Personal Care and Housewares.
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Challenging consumer discretionary environment. High resin prices have increased cost of goods sold substantially.
Mgmt says strongly considering share repurchase. I don’t think will happen. CEO, Gerry Rubin is paid out on 5-10% of company’s pre-tax income. History shows that they use cash to fund acquisitions to increase pre-tax income. Also shares traded near the 16$ pt last August – Sept 05, and little share repurchases. We are expecting GM compression going forward.