Helen Of Troy Stock Has Lost 27% Since Late 2019- Here’s Why

HELE: Helen of Troy logo
HELE
Helen of Troy

Helen of Troy (NASDAQ: HELE) stock price lost 27% from $180 in 2019 end to around $131 currently, primarily due to unfavorable changes in its P/S multiple. During this period, the company witnessed a strong 28% rise in revenues, and combined with a drop in its outstanding share count, its revenue per share actually rose 35%. Additionally, over the same period, the S&P 500 returned around 30%, meaning that HELE stock strongly underperformed the broader markets since 2019-end.

In our interactive dashboard, Why Helen of Troy Stock Moved: HELE Stock Has Lost 27% Since 2019, we break down the factors behind this move.

(A) Helen of Troy’s Total Revenue has grown 28% from $1.7 billion in FY 2019 to $2.2 billion on an LTM basis

  • HELE’s total revenue has grown from $1.7 billion in 2020 to $2.1 billion in 2021 (HELE’s fiscal year ends in February), led primarily by a sharp rise in Health & Home and Housewares revenues, which have each added $200 million in sales since FY ’19.
  • These segments helped Helen of Troy post strong sales growth in both the United States and international markets.
  • Additionally, HELE’s beauty product sales have also risen around $150 million since FY ’19, further boosting the company’s revenues.
  • For details about HELE revenues and comparison to peers, see Helen of Troy (HELE) Revenue Comparison
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(B) Revenue per share (RPS) increased 35% from $67.92 in FY 2019 to $91.72 currently

  • Helen of Troy revenue rose from $1.7 billion in FY ’19 to $2.2 billion currently, while the outstanding share count decreased from around 25.1 million in 2019 to just a little under 24 million currently.
  • Due to this, RPS has jumped from $67.92 in FY ’19 to $91.72 currently.

(C) Price-To-Sales (P/S) multiple for Helen of Troy rose strongly from 2.5x in 2019 end to 3.1x by 2020 end, but has pulled back to 1.4x currently, around 44% lower than what it was in late 2019

  • Helen of Troy’s exceptional performance since 2019-end first saw its P/S multiple increase from 2.5x in 2019 to over 3x in 2020, but currently stands at around 1.4x.
  • Despite HELE’s strong sales performance and increased demand, the P/S multiple has dropped steadily since late-2020 as the surging demand for housewares is expected to pull back.
  • For additional details about the company’s historical returns and comparison to peers, see Helen of Troy (HELE) Stock Return.

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Returns Aug 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 HELE Return -2% -46% 56%
 S&P 500 Return 1% -13% 85%
 Trefis Multi-Strategy Portfolio 3% -11% 252%

[1] Month-to-date and year-to-date as of 8/4/2022
[2] Cumulative total returns since the end of 2016

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