Helen of Troy raised its full-year profit forecast and said it plans to reinvest a majority of the tariff refunds it has received back into the business.
The consumer products company's updated outlook came alongside higher quarterly sales, boosted by growth in its home and outdoor segment.
Helen of Troy on Thursday raised its adjusted earnings per share forecast to between $3.60 and $4.15 for the year, up from a prior view of $3.25 to $3.75. It also narrowed its sales forecast to a range of $1.77 billion to $1.82 billion, compared with $1.76 billion to $1.83 billion previously.
The updated forecast factors in benefits from additional phases of tax refunds. The company said it plans to reinvest a majority of the $80.5 million it has received in refunds into marketing and other areas.
"While there is still meaningful work ahead, we are encouraged by the progress we are making to build a Better Helen of Troy on the road to becoming a Bigger Helen of Troy," Chief Executive Scott Uzzell said.
The stock gained 4.1% to $26.60 in premarket trading.
Second-quarter profit came in at $4.6 million, or 19 cents a share, compared with a loss of $308.6 million, or $13.44 a share, a year earlier.
The company said the results include $26.9 million in gross pre-tax tariff refunds, the majority of which it reinvested in the quarter, resulting in a net pre-tax benefit of about 12 cents for earnings per share. Additionally, earnings per share in the year-ago quarter were dented by $12.77 in after-tax non-cash asset impairment charges.
Adjusted earnings per share were 79 cents, compared with analyst estimates of 50 cents, according to FactSet.
Consolidated net sales rose 2.1% to $440.9 million, compared with analyst estimates of $442.3 million.
Growth in the company's home and outdoor segment drove the overall topline increase, helped by strong demand for technical, travel and lifestyle packs, an increase in international and closeout channel sales as well as new products.
The growth was offset by a decline in beauty and wellness due to weaker demand for hair appliances, prestige hair care and water filtration.