-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NV4O1OWgUxmHbMkwHgZJfqJ+FpzbbBDcMQJ7zyIgYDnRsvNY26tAeP8I7i7zGvuV zZDS5sUAnaxvOfFacJMoMQ== 0001144204-05-021557.txt : 20050714 0001144204-05-021557.hdr.sgml : 20050714 20050714135319 ACCESSION NUMBER: 0001144204-05-021557 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20050711 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050714 DATE AS OF CHANGE: 20050714 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HELEN OF TROY LTD CENTRAL INDEX KEY: 0000916789 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC HOUSEWARES & FANS [3634] IRS NUMBER: 742692550 FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14669 FILM NUMBER: 05954121 BUSINESS ADDRESS: STREET 1: CLARENDON HOUSE STREET 2: CHURCH STREET CITY: HAMILTON BERMUDA STATE: D0 ZIP: - BUSINESS PHONE: 915-225-8000 MAIL ADDRESS: STREET 1: ONE HELEN OF TROY PLAZA CITY: EL PASO STATE: TX ZIP: 79912 8-K 1 v021512.htm
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
 
Date of Report (Date of earliest event reported): July 11, 2005
 
 
 
HELEN OF TROY LIMITED
(Exact name of registrant as specified in its charter)
 
 BERMUDA
 001-14669
 74-2692550
 (State or other jurisdiction of incorporation)
 (Commission File Number)
 (IRS Employer Identification No.)
 
 
 
 
 
CLARENDON HOUSE
CHURCH STREET
HAMILTON, BERMUDA
(Business address of registrant)
 
ONE HELEN OF TROY PLAZA
EL PASO, TEXAS 79912
(United States mailing address of registrant)
 
Registrant's telephone number, including area code: (915) 225-8000
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
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ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
 
On July 11, 2005, Helen of Troy Limited issued a press release announcing its results for its first fiscal quarter ending May 31, 2005. A copy of this press release is attached hereto as Exhibit 99.1. Additionally, on July 11, 2005, Helen of Troy Limited held a conference call discussing its results for the same periods mentioned above. A copy of the text of this conference call is attached hereto as Exhibit 99.2.
 
The Company desires to avail itself of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the "Act") and is including this cautionary statement for the express purpose of vailing itself of the protection afforded by the Act.
 
The accompanying press release and conference call transcripts contain certain forward-looking statements, which are subject to change, including, but not limited to:
 
o
Statements regarding the expected overall improvement in sales in the secondhalf of the current fiscal year.
   
o
Statements regarding sales and earnings guidance for the current fiscal year.
 
o
Statements regarding general sales trends in certain categories of our business for the balance of the fiscal year.
 
o
Statements regarding our new distribution center being fully operational during the first calendar quarter of 2006, the impact and timing of certain related one-time expenditures in connection with the transition to this facility, the impact of this move on certain key expense categories,the expected future annual net savings arising from the move to our new distribution facility and the potential sale and possible leaseback of an existing distribution facility at some point during the remainder of the current fiscal year.
 
o
Statements regarding the timing of advertising expenditures and their expected impact on sales during the remainder of the current fiscal year.
 
o
Statements regarding OXO International's sales increases and their continued sustainability for the balance of the current fiscal year.
 
o
Statements regarding our belief that we will continue to experience pricing pressure at certain entry level price points in our appliance business for the balance of the current fiscal year, particularly in the second quarter.
 
o
Statements regarding the expected levels of selling, general, and administrative expense for the balance of the current fiscal year.
 
o
Statements regarding our response to the potential impact of increases in the price of raw materials.
 
o
Statements regarding the expected timing and branding of new product introductions into various domestic and foreign markets.
 
o
Statements regarding anticipated levels of capital expenditure for the balance of the current fiscal year.
 
o
Statements regarding anticipated effective corporate tax rates going forward for the foreseeable future.
 
o
Statements regarding anticipated levels of cash flow from operating income for the current fiscal year.
 
o
Statements regarding key components of working capital, and the expected impact of seasonal trends on their general balance sheet levels during the ensuing second, third and fourth fiscal quarters.
 
o
Statements regarding our expectations regarding the timing of shipments by month during our peak shipping season in comparison to the timing of shipments by month during the same period last fiscal year.
 
o
Statements regarding future levels of operating income by segment, and the potential impact and timing of expected future changes in the allocation of certain items of corporate overhead, once certain transitional service costs currently being paid by our Housewares segment are terminated and these services are absorbed within our existing cost structure.
 
2 of 5
 
A number of risks or uncertainties could cause actual results to differ materially from historical or anticipated results or from the results or effects contemplated by the forward looking statements. Generally, the words "anticipates", "believe", "believes", "expects", "expected", "expectation", "forecasting" and other similar words identify forward-looking statements. The Company cautions readers not to place undue reliance on forward-looking statements. The actual results may differ materially from those described in any forward-looking statements. The Company intends its forward-looking statements to speak only as of the time of such statements, and does not undertake to update or revise them as more information becomes available. Additional information concerning potential factors that could  affect the Company's financial results and the forward looking statements is included in the Company's Form 10-K for the year ended February 28, 2005 and the Form 10-Q for the quarter ended May 31, 2005.
 
The information in this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the  Securities Act of 1933 or any proxy statement or report or other document we may file with the SEC, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such filing.
 
ITEM 9.01. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL EXHIBITS
 
(c) EXHIBITS.
 
The following exhibits are furnished with this report on Form 8-K:
 
  Exhibit No.  
Description.  
       
  99.1    Press Release, dated July 11, 2005  
       
  99.2     Text of conference call held July 11, 2005 
 
 
 
 
 
 
 
 
 
3 of 5
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
     
  HELEN OF TROY LIMITED
 
 		  
 		  
 
Date: July 14, 2005 By:   /s/ Thomas J. Benson                             
  Thomas J. Benson
 
Senior Vice President, Finance and Chief Financial Officer
 
 
 
 
 
 
4 of 5
 
 
 
EXHIBIT INDEX
 
 
 
 
  Exhibit No.  
Description.  
       
  99.1    Press Release, dated July 11, 2005  
       
  99.2     Text of conference call held July 11, 2005 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 of 5
 EX-99.1 2 v021512_ex99-1.htm


 EXHIBIT 99.1
            
 
immediate release
 

HELEN OF TROY LIMITED REPORTS
FIRST QUARTER SALES AND NET EARNINGS

EL PASO, Texas, Jul. 11 - Helen of Troy Limited (NASDAQ, NM: HELE), designer, developer and worldwide marketer of brand-name personal care and household consumer products, today reported sales and earnings for the first quarter ended May 31, 2005.
 
First quarter sales increased 19 percent to $127,392,000 versus sales of $107,021,000 in the same period of the prior year. First quarter net earnings were $10,547,000 or $0.33 per diluted share, compared with $14,483,000 or $0.44 per diluted share for the same period a year earlier, a decline of 27 percent. Gross profit for the first quarter was 46.1 percent of sales compared with 46.9 percent of sales for the prior year first quarter. Increases in selling, general and administrative expenses during the quarter were the primary reasons for the net earnings decline for the first quarter. The SG&A expense increases include additional personnel, warehousing, freight, depreciation, advertising expenses for new product launches for the Brut and Sea Breeze skin care products, and costs associated with modifications, operations, and improvements of our worldwide information systems.
 
Gerald J. Rubin, Chairman, Chief Executive Officer and President, commenting on the Company’s first quarter results, stated “In our earnings conference call of May 12, 2005, we discussed our expectation that sales in our personal care lines of business would be flat during the first half of fiscal 2006, with an improvement expected in the second half of the year. Excluding the sales of the newly acquired OXO International business, personal care sales for the first quarter of fiscal 2006 ended May 31, 2005 decreased approximately 6 percent. While this is an improvement over our fourth quarter fiscal year 2005 decline in personal care sales of 11 percent, we were disappointed that the improvement in our personal care sales from last year’s fourth quarter was not as large as we had expected. Our sales leaders during the first quarter were OXO International products, the domestic Idelle Labs skin care products, and Latin American sales of hair care appliance products.
 
“We are currently building a 1,200,000 square foot distribution center in Southaven, Mississippi, that will expand our eastern United States capacity to accommodate the distribution needs of OXO International and future business expansion. The state of the art warehouse and distribution center will increase the Company’s presence in Southaven, Mississippi to 1,200,000 square feet from 619,000 square feet. This new distribution center is expected to be fully operational by the first quarter of calendar year 2006.
 
1
 
“As of May 31, 2005, Helen of Troy’s balance sheet remains strong, with cash of $7 million and stockholders’ equity of $434 million, an increase of $66 million in stockholders’ equity from the comparable period last year. Our accounts receivable at quarter-end was $112 million.
 
“We are reiterating our fiscal year sales and net earnings guidance provided last quarter, with sales in the range of $615 million to $640 million, and net earnings in the range of $2.50 to $ 2.60 per diluted share,” Rubin concluded.
 
The Company will conduct a teleconference in conjunction with today’s release. The teleconference begins at 11 a.m. ET today, Monday, July 11, 2005. Members of the news media, investors and the general public are invited to access a live broadcast of the conference call via the Investor Relations page of the Company’s website at www.hotus.com. The event will be archived and available for replay through August 31, 2005.
 
Helen of Troy Limited is a leading designer, producer and global marketer of brand-name personal care and household consumer products. The Company’s personal care products include hair dryers, curling irons, hair setters, women’s shavers, brushes, combs, hair accessories, home hair clippers, mirrors, foot baths, body massagers, paraffin baths, liquid hair styling products, body powder and skin care products. The Company’s household products include consumer product tools in the kitchen, cleaning, barbecue, barware, storage, organization, garden, trash and automotive categories. The Company’s products are sold by mass merchandisers, drug chains, warehouse clubs and grocery stores under licensed trade marks including Vidal Sassoon®, licensed from The Procter & Gamble Company, Revlon®, licensed from Revlon Consumer Products Corporation, Dr. Scholl’s®, licensed from Schering-Plough HealthCare Products, Inc., Sunbeam®, Health at Home® and Health o meter®licensed from Sunbeam Products, Inc., Sea Breeze®, licensed from Shiseido Company Ltd., and Vitapointe®, licensed from Sara Lee Household and Body Care UK Limited. Helen of Troy’s owned brands include OXO®, Good Grips® , Brut®, Vitalis®, Final Net®, Ammens®, Condition 3-in-1®, Skin Milk®, TimeBlock®, Epil-Stop®, Dazey®, Caruso®, Karina®, DCNL™, Nandi™, Isobel™ and WaveRage®. The Company markets hair and beauty care products under the Helen of Troy®, Hot Tools®, Hot Spa®, Salon Edition®, Gallery Series®, and Wigo® owned brands to the professional beauty salon industry.
 
This press release may contain certain forward-looking statements, which are subject to change including the statement regarding an improvement in sales in the second half of the year. A number of risks or uncertainties could cause actual results to differ materially from historical or anticipated results. Generally, the words “anticipates”, “believes”, “expects” and other similar words identify forward-looking statements. The Company cautions readers not to place undue reliance on forward-looking statements. The actual results may differ materially from those described in any forward-looking statements. The Company intends its forward-looking statements to speak only as of the time of such statements, and does not undertake to update or revise them as more information becomes available. Additional information concerning potential factors that could affect the Company’s financial results is included in the Company’s Form 10-K for the year ended February 28, 2005 and the Form 10Q for the quarter ended May 31, 2005.
 
2
 
HELEN OF TROY LIMITED AND SUBSIDIARIES
 
Consolidated Condensed Statements of Income
(unaudited)
(in thousands, except per share data)
 
     
For the Three Months Ended May 31, 
  
     
2005 
    
2004 
  
                           
Net sales
  
$
127,392
    
100.0
%
$
107,021
    
100.0
%
Cost of sales
    
68,700
   
53.9
%
  
56,781
   
53.1
%
 
          
 
    
 
    
 
  
Gross profit
    
58,692
   
46.1
%
  
50,240
   
46.9
%
                           
Selling, general, and administrative expense
    
43,394
   
34.1
%
  
31,340
   
29.3
%
 
          
 
    
 
    
 
  
Operating income
    
15,298
   
12.0
%
  
18,900
   
17.7
%
 
          
 
    
 
    
 
  
Other income (expense):
                          
Interest expense
    
(3,263
)
  
-2.6
%
  
(986
)
  
-0.9
%
Other income (expense), net
    
(58
)
  
0.0
%
  
96
   
0.1
%
 
          
-
    
 
    
 
  
Total other income (expense)
    
(3,321
)
  
-2.6
%
  
(890
)
  
-0.8
%
 
          
 
    
 
    
-
  
Earnings before income taxes
    
11,977
   
9.4
%
  
18,010
   
16.8
%
                           
Income tax expense (benefit)
    
1,430
   
1.1
%
  
3,305
   
3.1
%
 
          
 
    
 
    
 
  
Income from continuing operations
    
10,547
   
8.3
%
  
14,705
   
13.7
%
                           
Loss from discontinued segment's operations and impairment of,
                          
related assets, net of tax benefits of $-0- and $442
    
0
   
0.0
%
  
(222
)
  
-0.2
%
 
          
 
    
 
    
-
  
Net earnings
  
$
10,547
    
8.3
%
$
14,483
    
13.5
%
 
          
 
    
 
    
 
  
Earnings per share:
                          
Diluted
                          
Continuing operations
  
$
0.33
        
$
0.45
        
Discontinued operations
  
$
-
        
$
(0.01
)
      
Total diluted earnings per share
  
$
0.33
        
$
0.44
        
                           
Weighted average common shares used in computing net earnings per share
                          
Diluted
    
32,154
         
32,724
       
 
 
3
 
 
HELEN OF TROY LIMITED AND SUBSIDIARIES
 
Selected Consolidated Balance Sheet Information
(unaudited)
(in thousands)

 
    
5/31/2005 
    
5/31/2004
  
 
          
 
  
Cash
  
$
6,781
  
$
52,819
  
               
Marketable securities, at market value
    
71
   
385
 
               
Accounts receivable
    
111,742
   
82,653
 
               
Inventory
    
173,839
   
105,841
 
               
Total current assets
    
306,761
   
253,014
 
               
Total assets
    
838,658
   
488,892
 
               
Total current liabilities
    
144,546
   
75,849
 
               
Total long term liabilities
    
260,000
   
45,000
 
               
Stockholders equity
    
434,112
   
368,043
 
 
 
 
4
 
HELEN OF TROY LIMITED AND SUBSIDIARIES
 
EBITDA EXCLUDING DISCONTINUED OPERATIONS
(unaudited)
(in thousands)

   
Three Months Ended May 31, 
  
     
2005
    
2004
  
 
          
 
  
Net earnings from continuing operations
  
$
10,547
  
$
14,705
  
               
Interest income / Expense, net
    
3,178
   
788
 
               
Income tax expense
    
1,430
   
3,305
 
               
Depreciation and amortization
    
2,726
   
1,549
 
 
          
 
  
EBITDA (Earnings before interest, taxes, depreciation and amortization) excluding discontinued operations
  
$
17,881
  
$
20,347
  
 
This information may be considered non-GAAP Financial Information as contemplated by SEC Regulation G, Rule 100. Accordingly, we are providing the preceding table which reconciles these measures to their corresponding GAAP based measures presented under our Consolidated Condensed Statements of Income, in the accompanying press release.

Management believes the presentation of these non-GAAP financial measures, in connection with the results of the fiscal quarter ended May 31, 2005, provide useful information to investors regarding our results of operations as this non-GAAP financial measure allows investors to better evaluate ongoing business performance and factors that influenced performance during the period under report. Management also uses these non-GAAP measures internally to monitor performance of the business. These non-GAAP financial measures should be considered in addition to, and not as a substitute for financial measures prepared in accordance with GAAP.

###

2005
 
5
 
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Conference Call Transcript
Q1 Fiscal 2005 Helen of Troy Earnings Conference Call
July 12, 2004 11:00 a.m. ET
 
CORPORATE PARTICIPANTS

Gerald Rubin
Helen of Troy - Chairman - President and CEO

Christopher Carameros
Helen of Troy - Executive Vice President

Robert Spear
Helen of Troy - Senior Vice President, CIO

Thomas Benson
Helen of Troy - Senior Vice President, CFO

CONFERENCE CALL PARTICIPANTS

Gary Giblin
CL King

Doug Lane
Avondale Partners

Justin Boisseau
Gates Capital Management

Dax Alasis [sp]
Gates Capital Management

Mimi Sokolowski
Sidoti & Company

Mike Carlotti
Palmyra Capital

Jason Crenshaw
Brait Specialized Funds

PRESENTATION

Operator

Good morning, and welcome ladies and gentlemen to the Helen of Troy first quarter earnings conference call for fiscal 2005. At this time I would like to inform you that all participants are in a listen only mode. At the request of the company, we will open up the conference for questions and answers after the presentation.

Our speakers for this morning’s conference all are Gerald Rubin, Chairman, Chief Executive Officer and President; Christopher Carameros, Executive Vice President; Thomas Benson, Senior Vice President and Chief Financial Officer; and Robert Spear, Senior Vice President and Chief Information Officer. I will now turn the conference over to Robert Spear. Please go ahead, sir.
__________________________________________

Robert Spear - Helen of Troy - Senior Vice President, CIO

Thank you. Good morning, everyone, and welcome of Helen of Troy’s first quarter earnings conference call for fiscal year 2005. The agenda for this morning’s conference call will start with a review of our forward-looking statements, followed by Mr. Rubin, who will discuss our first quarter earnings release and related results of operations for Helen of Troy, followed by a financial presentation by our Chief Financial Officer, Tom Benson. Finally, a question and answer session for those of you with any further questions. I’ll now start with the forward-looking statement.

This conference call may contain certain forward-looking statements that are based on management’s current expectation with respect to future events or financial performance. A number of risk or uncertainties could cause actual results to differ materially from historic or anticipated results. Generally the words “anticipates, believes, expects” and other similar words identify forward-looking statements. The company cautions listeners to not place undue reliance on forward-looking statements. Forward-looking statements are subject to risks that could cause such statements to differ materially from our actual results. Factors that could cause actual results to differ from those anticipated are described in the company’s 10-K filed with the Securities and Exchange Commission for the fiscal year ended February 29, 2004 and Form 10-Q for the quarter ended May 31, 2004.

 
 
 
 
Before our turn the call over to our Chairman, Mr. Rubin, I would like to inform all interested parties that a copy of today’s earnings release has been posted on our website at www.hotus.com. The release can be accessed by selecting the Investor Relations tab on our home page, and then the News tab. I will now turn the conference over to Mr. Gerald Rubin, Chairman, CEO and President of Helen of Troy.
__________________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

Thank you, Bob, and good morning to everybody. Helen of Troy today reported record sales and operating income for the first quarter ended May 31, 2004. This is the 37th quarter out of the last 41 quarters that Helen of Troy has had record sales and continuing operating profit. Sales increased 17% to a first quarter record of $107 million versus sales of 91 million in the same period of the prior year.

First quarter net income was $14,483,000 or 44 cents per diluted share compared to $14,844,000 or 50 cents per diluted share for the same period a year earlier. This year’s first quarter net income results include a loss from discontinued operations of 222,000 or one penny per diluted share related to Tactica International, which their final operations were from March first through April 29th. Last year’s first quarter net income includes a one time non-operating gain from litigation proceeds in the pre-tax amount of $2.6 million or eight cents per diluted share. Excluding the impact of the litigation gain in fiscal 2004 and the discontinued operations of Tactica in fiscal 2004 and 2005, comparative earnings were $14,705,000 or 45 cents per diluted share in the first quarter ended May 31, 2004 versus $12,265,000 or 41 cents per diluted share for the first quarter ended May 31, 2003, an increase of 20 cents in comparative earnings.

Operating income for the first quarter was a record $18,900,000 versus $15,821,000 for the first quarter in last year, an increase of 19%. OXO sales and profit were not included in the first quarter results as we didn’t purchase OXO until June first of this year.

I am pleased with our ongoing operating results for the first quarter and reaffirm our full near guidance of $2.50 to $2.70 for fiscal 2005 ending February 28, 2005. These anticipated results project an increase of 29 to 39 percent in net income per diluted share from fiscal 2004’s earnings per diluted share of $1.94. Full year sales are expected to be in the range of 575 to 600 million compared to prior year sales of 475 million or an increase of 21 to 26 percent. Our core business is projected to be up eight to 10 percent this year.

Our sales leaders include retail personal care, professional international products as well as grooming, skin and hair care products. Our inventory was reduced from 126 million at May 31, 2003 to the current 106 million, a decrease of 16%, even as sales increase 17%. For the second quarter ending August 31, 2004, we expect overall sales to be in the range of 135 million to 140 million compared to our last year’s second quarter sales of 105 million or an increase of 29 to 33 percent.

Retail sales of our products continue to be strong in the second quarter. Earnings per share for the second quarter are expected to be in the range of 50 to 55 cents per diluted share versus prior year earnings per share of 42 cents per diluted share, an increase of 19 to 31 percent. All of our categories are contributing to increases in both sales and profitability and our new OXO International acquisition allows us to enter new and exciting markets through new and existing distribution channels, and we look forward to another record year in sales and earnings for them and for us.

I’d like to make a comment about Wal-Mart. Our Wal-Mart sales last year were 28% of the company’s total. This year, Wal-Mart’s sales percentage of our company sales will be 22 to 24 percent, even with Wal-Mart sales from us growing at double digits percentage this year. Even with our company growing 21 to 26%. So from 28%, Wal-Mart will be 22 to 24, even with double-digit sales.

Now I’d like to turn this conference over to Tom Benson, our CFO.

__________________________________________

Thomas Benson - Helen of Troy - Senior Vice President, CFO

Thanks, Gerry, and good morning. We’re all pleased with our operating performance for the first quarter. First quarter net sales grew 17.3% year-over-year. Quarter one fiscal 2005 sales were 107 million compared to 91.2 million in the prior year quarter. This represents an increase of 15.8 million or 17.3%. However, more importantly, our first quarter operating income increased by 19.5% year-over-year. Quarter one fiscal 2005 operating income was 18.9 million, which is 17.7% of sales, compared to 15.8 million, 17.3% of sales in the prior year quarter. This represents an increase of $3.1 million. It’s a 19.5% increase, and the operating income margin grew .4 percentage points.

 
 
 
 
First quarter income from continuing operations improved slightly year-over-year. Quarter one fiscal 2005 income from continuing operations was 14.7 million, 13.7%, compared to 14.6 million, 16% in the prior year quarter. This is a $100,000 increase. Included in the 14.6 million of income from continuing operation in last year’s first quarter is an after tax gain on a litigation settlement of approximately 2.4 million.

During first quarter of fiscal 2005, we completed the sale of our 55% ownership interest in Tactica. During the quarter we recorded an after tax loss from discontinued operations of 222,000 compared to a profit of 223,000 in the first quarter of last year.

First quarter earnings from continuing operations per diluted share was 45 cents and the first quarter of 2005 compared to 49 cents in the first quarter of fiscal 2004. This is a four cent decrease. First quarter fiscal 2004 diluted earnings per share from continuing operations of 49 cents includes approximately eight cents attributable to the litigation settlement previously mentioned, netting to 41 cents for the first quarter last year without the litigation settlement.

The number of shares used to compute diluted earnings per share increased from 29.9 million for the quarter ended May 31, 2003 to 32.7 million for the quarter ended May 31, 2004, a 9.4% increase, mostly due to the increase in the average stock price, which increased the number of outstanding options included in the calculation.

The average share price for the quarter ended May 31, ‘03 was $13.90 per share compared to $30.93 per share for the quarter ended May 31, ‘04.

Now I will provide a more detailed review of various components of our financial performance. Quarterly net sales were 107 million in the first fiscal quarter of 2005 compared to 91.2 million in the prior year quarter, an increase of 15.8 million, 17.3%. We had net sales increase in the hair care appliance category and in the grooming, skin care and hair care products and accessory category was down. Core sales in the first quarter of fiscal 2005 were 97.9 million compared to 91.2 million in the prior year first quarter. This represents an increase of 6.6 million, which is 7.3% core sales growth. Non-core sales in the quarter ended May 31, 2004 accounted for 9.2 million in sales, which is 10% of the sales growth.

Gross profit for the first quarter was 50.2 million, a gross profit percent of 46.9% compared to 43.6 million, which is 47.7% in the prior year first quarter. This represents a dollar increase of $6.7 million and it is a percentage increase of 15.3%. The slight decrease in gross profit percent of .8 percentage points is primarily due to a combination of sales and exchanges and increased close-out sales as we adjust our inventory positions in anticipation of new product introductions in the next two quarters.

Selling, general and administrative expenses decreased as a percentage of sales during the first quarter of fiscal 2005. It was $31.3 million, which is 29.3% of sales compared to 27.7 million, 30.4% of sales in the prior year quarter. This is a decrease of 1.1 percentage points. The decrease in SG&A percentage is due to leveraging of warehouse and personnel costs at higher sales volume. These gains were partially offset by increases in advertising, freight and trade show costs.

Operating income improved to 17.7% of net sales, $18.9 million for the first quarter of 2005 compared to 17.3%, $15.8 million for the first quarter of fiscal 2004.

Interest expense was down slightly in the quarter ended May 31, 2004 compared to the prior year quarter because the prior year quarter had a small interest expense for several tax audits.

Other income is down 2.8 million in the quarter ended May 31, 2004 compared to the prior year quarter, due mostly to the other income associated with the litigation settlement in the prior year quarter. The tax expense for the first quarter of 2005 was 3.3 million, 18.4% of income before taxes compared to 3.1 million, 17.5% of income before taxes in the prior year first quarter. The effective tax rate is up .9 percentage points compared to the prior year due to the mix of income in taxing jurisdictions with different tax rates.

I will now discuss our financial position. Our cash balance was 53 million at May 31, 2004, which is comparable to 53 million at our prior year end, February 29, 2004. Accounts receivable increased 19.3 million year-over-year with the sales increase of 15.8 million. Accounts receivable days fell to 62.8 days at May 31, 2004 compared to 66.3 days at May 31, 2003.

 
 
 
 
Inventories at May 31, 2004 only increased $1.8 million from February 29, 2004 and are down 20.3 million from May 31, 2003. In the prior year, we accelerated inventory purchases and receipts in advance of anticipated ocean freight rate increases and billed inventory levels of newly acquired skin and hair care brands. We anticipate significant seasonal inventory growth over the next few months as we prepare for our peak selling season during the second half of the calendar year. Shareholders’ equity increased $64 million to 368 million at May 31, 2004 compared to May 31, 2003.

I will now update you on our financing activities. We closed the acquisition of OXO on June first with 273 million purchase price was financed with a new five year, $75 million revolver loan and a 200 million bridge facility. The bridge facility was replaced with 225 million of floating rate senior notes at the end of June. We have 100 million of five year notes, 50 million of seven year notes, and 75 million of 10 year notes. Due to the attractive short-term interest rates, we have elected to have floating rate debt. As of today, we have paid down our $75 million revolver to zero. This revolver facility is available for future borrowings. We have the ability to fix the interest rate on this debt in the future if we choose. We continue to have our $55 million of fixed rate debt.

I will now turn it over to Chris Carameros, our Executive Vice President, for some additional comments.
__________________________________________

Christopher Carameros - Helen of Troy - Executive Vice President

God morning. As we were reviewing the first quarter results, we came to the consensus that we needed to discuss our newest acquisition, OXO. We want the shareholders to know how excited we are about OXO being a part of Helen of Troy and what the acquisition will mean to the company.

As we were thinking this over, we concluded that I needed to briefly discuss the overall company before I cover OXO. First, Helen of Troy has a professional appliance category, which is led by Art August [sp], our Executive VP. Art and his team have built the number one professional brand, Hot Tools, in the beauty and professional industry. Next is our retail appliance category. It consists of great global brands such as Vidal Sassoon, Revlon, Sunbeam, Dr. Scholls and recently Healthmeter [sp]. Helen of Troy is growing these brands into market leader positions.

Next is our brush, comb and accessory category of business led by Alan Aimes [sp] and Diane Lasonex [sp]. Both these individuals are charged with revitalizing this category. We have great brand names such as Corina [sp], Vidal Sassoon and Revlon. We’re excited about our recent addition of the Revlon brand name to the accessory area. Helen of Troy is a company who stays the course and is a top performer in a variety of market areas. In addition, Helen of Troy consistently creates new innovative products. Examples of this are the Ionic [sp] hair dryer appliances, which were recently extended into variable ion dryers. Helen of Troy is also introducing other great products like numerous ceramic flat irons which are leaders in the category. These great innovative products are the result of many dedicated hard-working professionals and business partners in the US, Hong Kong and China led by Michael Kafaro [sp] here in the US.

Helen of Troy is a company who innovates. Most of these appliance and hair care products are manufactured in the Far East under UL and Helen of Troy quality standards. This sourcing and UL capability is monitored by the Hong Kong office with over 100 employees. Our Far East sourcing is led by Don and Roseanne Hall to ensure that all products are delivered to various retailers around the world on an on time basis, which is a constant challenge in today’s retail market. Helen of Troy is an efficient sourcing company with over 30 years of experience in the Far East that delivers products around the globe.

Next, Helen of Troy has an excellent finance team, which is led by our CFO, Tom Benson. The team recently negotiated and closed a new financing at very favorable rates, but in 60 days of the contract date including the long-term financing within 30 days of the closing date of the OXO transaction. Again, Helen of Troy is a company with great financial records, a strong balance sheet which will enable more internal growth and growth by acquisition.

Helen of Troy sales and market consumer products on a worldwide basis. The international team in Europe is led by Kevin James, with officers in the UK, France, Hong Kong and Germany and Carlos Lovelle [sp] in Latin America with offices in Mexico and Brazil. Kevin’s team has greatly increased Helen of Troy’s market share over the last two years. Meanwhile, Carlos and his team have initiated great appliance business in Mexico and have established Helen of Troy appliance brands along with Aimes powder and Brute with major retailers in Mexico and Latin America over the last 12 months. Helen of Troy has strong viable international capabilities.

 
 
 
 
Our grooming, hair care and skin categories of business located in Connecticut is led by Jack Danson [sp]. Jack and his team have taken some old and neglected brands and revitalized them with key retailer incentive programs, new product introductions backed with national TV and print advertising campaigns. As an example is our recent launch of Vitalis men’s shampoo, installing products in the future launch of Sea Breeze initiatives in the spring/summer of 2005. Helen of Troy has a record of acquiring brands and/or companies with successful integration, growth and profitability.

Helen of Troy has proven low cost logistics capabilities with warehouses in the US, Canada, Mexico, Brazil, the UK, Hong Kong and Amsterdam. We have recently invested in new IT technology systems that [unintelligible] with worldwide web capabilities. Helen of Troy has invested heavily in warehouse and IT infrastructure to enable growth within the company and for acquisitions, and lastly now, hot acquisition of OXO. Everyone at Helen of Troy is excited about the OXO brand name along with the great people associated with the company. The OXO brand name is one of the few brands that goes beyond the kitchen and across the consumer household. OXO has established product categories in the kitchen, bath, garage, cleaning, garden and other parts of the home. Further, OXO has great development potential. An example of that is in the kitchen. OXO is the market leader in kitchen gadgets today and has a great potential to become a leader in upscale small kitchen appliances tomorrow.

In the garage and the house, OXO has limited tools to date, but we’re currently exploring a great opportunity with a strong retail partner in developing hand tools for the home improvement category. OXO plans to launch these new products in 2005. This category could provide for a large, meaningful increase in business over the next two years.

Now we move to the bath. OXO has substantial opportunity to enter the personal care category with professional quality features targeting premium consumer channels. Cleaning: OXO may consider to expand established cleaning care products, electrical product offerings, and this is just the beginning.

Now how does all this fit into Helen of Troy? OXO, like Helen of Troy, has a great position in current categories of business with a great future of over 160 new products currently in the process of development. OXO will be able to expand into electrical, kitchen and household cleaning product offerings by utilizing Helen of Troy’s current UL and appliance sourcing capabilities. OXO will begin to utilize Helen of Troy’s bath sourcing capabilities in the Far East and has already begun to do so with a new hand tool category mentioned above. OXO will begin to utilize Helen of Troy’s international capabilities in Europe and Latin America beginning early in 2005. OXO will utilize Helen of Troy’s financial and accounting capabilities and transition over to Helen of Troy’s information, warehouse and supply chain logistic systems in 2005.

In summary, OXO is a great brand that can expand into new categories. OXO will benefit from Helen of Troy’s established Far East sourcing capabilities. OXO will benefit and utilize existing warehouse, IT and financial accounting support, and OXO sales will benefit from Helen of Troy’s international sales offices and expertise. OXO will continue to be led by Alex Lee [sp] as president and Larry Witt [sp], Vice President of Sales and market development located in New York City along with other current employees. We’re really exited about OXO and think it’s a great acquisition.
______________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

Thank you, Chris and Tom. I’d now like to open up the conference for questions.
__________________________________________

QUESTION AND ANSWER
__________________________________________

Operator

Thank you, sir. The question and answer session will begin now. If you are using a speaker phone, please pick up the handset before pressing any numbers. If you have a question, please press the star, one on your push button telephone. If you wish to withdraw that question, please press the star, two. Your question will be taken in the order that it is received. Please stand by for your first question. Our first question comes from Gary Giblin from CL King. Please state your question.
 
 
 
 
 
__________________________________________

Gary Giblin - CL King

Hi. Good morning. Good results, everybody. A lot of retailers had weak numbers in June and Central Garden [unintelligible] indicated, the big decline, sort of cliff like decline in the gardening orders from retailers. So the guidance seems to indicate that nothing is changing in the business. So what gives you the confidence, Gerry, that either the consumer nor the retailer buy-in will slow down, given what seems to be happening in the consumer land now?
__________________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

You know, as we talked about previously, we introduced a lot of products with the housewares show in March--that used to be January in Chicago--and we know the placements that we have with major retailers throughout the country, and we have more placements with major retailers throughout the country. So we’re optimistic that these products will sell better. As I mentioned only Wal-Mart in my comments, but the other major retailers, all their sales are up with us. Our products are moving. We have innovative products, good price points, and we supply products on time and nothing can be sure 100 percent, but based on past performance, we’re going to have a good rest of the year.

__________________________________________

Gary Giblin - CL King

OK. And to what degree are orders locked in? In other words, it looks like some people [unintelligible] Wal-Mart is canceling orders because it’s just stopping their expected purchases but how many months of orders are already locked in or how sensitive are you to that conceivable thing, although I understand what you’re saying about your products having strong sell-through. But if something happened, would it affect July sales, or would it be something that wouldn’t happen until October, from the Helen of Troy standpoint?

__________________________________________

Man

We receive most of our orders from our customers on a POS basis. As they sell it, we receive the orders. As I mentioned, we do have more placement on product and more shelf space than we’ve ever had. Also, we also have some new customers, the higher end department stores, that we will have this fall, with our Help-o-Meter [sp]. So overall, we don’t get our orders three or four months in advance. We get them as they sell it, but we know that replacement and history that we’ll have an eight to 10 percent increase just in our core business along with all the other new products and the OXO and the Brute that we have, that we didn’t have last year.

__________________________________________

Gary Giblin - CL King

Great, and thanks for the info on OXO and the remarks. Thank you.

__________________________________________

Operator

Thank you. Our next question comes from Doug Lane from Avondale Partners. Please state your question.

__________________________________________

Doug Lane - Avondale Partners

Yes, hi. Gerry, can you talk about, or Chris, on the OXO acquisition, what do you see as far as cross-marketing, because the channel is a little bit different than what you’re used to on the core appliance business? Is there any sort of a way to take maybe the core business into different channels or take the OXO business and some into some of your existing channels on the retail side?

__________________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

This is Gerry. As Chris mentioned, the OXO name is so good throughout the house that we are planning on expanding it to many of the categories that we’re in because of our capabilities of making in the Orient. So, yes, the answer is we will have some of that. On the other hand, the kitchen appliances are in the kitchen section of the stores, and this makes it stronger with the retailer. We are selling more and more product to retailers throughout the country, and that was our goal in acquiring OXO and also with the other brands that we purchased from P&G and Unilever. We are a very good supplier, we’re value added to the retailer, and that’s our goal, to sell more and more products; and which categories they’re going to be, of course, we’ll be expanded. We want to be in more places in the store, not only with what we have, but things that we have planned. And of course with the OXO, we want to be in all categories of retailers from the high end to the mass merchants to the warehouse clubs, and we expect to sell as many products as we can with them.

 
 
 
__________________________________________

Doug Lane - Avondale Partners

I assume that with Wal-Mart going from 28% down to 22 to 24 percent is because OXO doesn’t have a very big business with Wal-Mart. Do they have any business with Wal-Mart?

__________________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

At present, they don’t sell them anything.

__________________________________________

Doug Lane - Avondale Partners

So if I’m going to look at the opportunity for OXO in Wal-Mart, is it going to be in the newer categories, or can you take what they sell to Linens and Bath and move that into Wal-Mart? That’s going to be tough I imagine because of the positioning.

__________________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

At the present time I can’t comment other than to tell you that their products currently are not offered at Wal-Mart, and leave it at that.

__________________________________________

Doug Lane - Avondale Partners

OK. And what about the other way, do you think you can come up with a more premium--I don’t know, in the personal care appliance? Because you don’t have much business with Bed Bath and Linens right now, is that correct?

__________________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

No, we’re doing very, very well with them. But our offerings are going to [unintelligible] increase with the OXO. But they’re a very good customer of ours.

__________________________________________

Doug Lane - Avondale Partners

OK. And just from a matter of modeling, what kind of tax rates should we put on OXO? Is that going to be part of the Bermuda infrastructure, or is it going to be like Tactica or is it a US company?

__________________________________________

Christopher Carameros - Helen of Troy - Executive Vice President

This is Christopher Carameros. It should have the same tax structure as we have.

__________________________________________

Doug Lane - Avondale Partners

OK. Are you guys not talking about North America and international, or do we have to wait for the Q for that?

__________________________________________

Thomas Benson - Helen of Troy - Senior Vice President, CFO

This is Tom Benson. The Q will be out, and as you’ll see in the Q, we have realigned our segments, so we’ll no longer be talking about North American and international in the future. We’re going to be talking about the personal care area, and then with OXO we’ll be talking about the household product area.

 
 
 
 
__________________________________________

Doug Lane - Avondale Partners

Is it going to be just two segments?

__________________________________________

Thomas Benson - Helen of Troy - Senior Vice President, CFO

Yes. And the Q is going to be filed later today.

__________________________________________

Doug Lane - Avondale Partners

OK. Lastly, Tom, on the debt, what is the rate that you got on the five year, seven year and 10 year notes?

__________________________________________

Thomas Benson - Helen of Troy - Senior Vice President, CFO

The rate is a three month Libor, and it will reset every three months, and there is a margin above that, either 85 or 90 basis points, depending upon which group of debt it is.

__________________________________________

Doug Lane - Avondale Partners

OK. And if you were going to fix that today, what kind of fixed rate do you think you could get?

__________________________________________

Thomas Benson - Helen of Troy - Senior Vice President, CFO

In the four to five percent range probably.

__________________________________________

Doug Lane - Avondale Partners

OK. Thank you.

__________________________________________

Operator

Thank you. Our next question comes from Justin Boisseau from Gates Capital Management. Please state your question.

__________________________________________

Justin Boisseau - Gates Capital Management

Yeah, just wanted to make sure I understood the tax rate. Should we assume that it’s around 18.4% for the whole year?

__________________________________________

Christopher Carameros - Helen of Troy - Executive Vice President

Yes, this is Chris Carameros again. I was saying we have always said in the past, we have a tax rate of 16 to 18 percent, but I would assume 18%.

__________________________________________

Justin Boisseau - Gates Capital Management

OK. And what was your cap ex for the quarter? What would you expect it to be for the year?

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Thomas Benson - Helen of Troy - Senior Vice President, CFO

Let’s take a look at it real quick. This is Tom Benson. Our capital expenditures for the quarter were about $2-1/2 million and the current major item we’re finishing is our Oracle implementation. Other than that we don’t have any current major capital expenditures anticipated. I believe in our priori conference call, we said a level of $5 million to $7 million annual level would be something to use for modeling.

__________________________________________

Dax Alasis - Gates Capital Management

OK. This is Dax Alasis [sp]. Does your guidance for the year include any additional business from OXO at Wal-Mart?

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Christopher Carameros - Helen of Troy - Executive Vice President

This is Chris Carameros. It does not and we have not entertained the fact of going to Wal-Mart.

 
 
 
__________________________________________

Dax Alasis - Gates Capital Management

OK. Thanks.

__________________________________________

Operator

Thank you. Our next question comes from Mimi Sokolowski of Sidoti & Company. Please state your question.

__________________________________________

Mimi Sokolowski - Sidoti & Company

I was wondering if you guys could provide for us same store figures, X-ing out the new stores like Wal-Mart, etc., is opening? Do you have a core growth rate?

__________________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

Mimi, this is Gerry. We don’t have those numbers available. We know that overall it’s been double digit so far this year, and we expect it to continue to be double digit.

__________________________________________

Mimi Sokolowski - Sidoti & Company

OK. I also wanted to ask you about the projection for the second quarter. It does look like it’s possible that sales growth could outpace earnings growth. What’ going on there--what’s going on now that might be a possibility?

__________________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

Well, it’s always the possibility, although at the present time we’re not saying that it is. There is increased advertising on a lot of our products, but I don’t know that that’s actually going to happen when we do finish the quarter. We’ll just have to wait and see how the quarter grows. We’re expecting sales growth for the quarter of somewhere around 29 to 33 percent.

__________________________________________

Mimi Sokolowski - Sidoti & Company

Yeah, that’s about what I have.

__________________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

We’re expecting strong sales growth.

__________________________________________

Mimi Sokolowski - Sidoti & Company

And it looks like EPS growth is in the range of five--unless my numbers are wrong--anywhere between five and 17 percent.

__________________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

If you find that the amount of shares outstanding currently over last year is somewhere up about nine percent, so that needs to be taken into consideration also, if you’re just doing it EPS. If you’re doing it on operating profit, it should be up the same as the sales.

__________________________________________

Mimi Sokolowski - Sidoti & Company

OK. I think that’s it. Thank you.

__________________________________________

Operator

Thank you. Our next question comes from Mike Carlotti from Palmyra Capital. Please state your question.

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Mike Carlotti - Palmyra Capital

The non-core sales in the quarter, I think you said 9.2 million. What would that include? Is that just Brute?

 
 
 
__________________________________________

Thomas Benson - Helen of Troy - Senior Vice President, CFO

This is Tom Benson. It was 9.2 million and it is the Brute sales.

__________________________________________

Mike Carlotti - Palmyra Capital

OK. So Brute only. Then what was cash flow from operations?

__________________________________________

Thomas Benson - Helen of Troy - Senior Vice President, CFO

We do not discuss that. It will be in the Q when that’s filed.

__________________________________________

Mike Carlotti - Palmyra Capital

OK. And how about corporate expenses for the quarter versus last year? Can you disclose that?

__________________________________________

Thomas Benson - Helen of Troy - Senior Vice President, CFO

You’ll get--all those details will be in the Q.

__________________________________________

Mike Carlotti - Palmyra Capital

OK. Thank you.

__________________________________________

Operator

Thank you. Our next question comes from Jason Crenshaw from Brait Specialized Funds. Please state your question.

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Jason Crenshaw - Brait Specialized Funds

Yes, good morning. Nice job on the quarter, guys. Couple of quick questions here. With OXO, as far as what sort of integration needs to be done or to what level, could you talk about what the time line will be and when you anticipate full integration for OXO?

__________________________________________

Christopher Carameros - Helen of Troy - Executive Vice President

This is Chris Carameros. AS I mentioned, we are utilizing World Kitchen’s existing systems to do the warehouse, billing and shipping at this point in time. We’re implementing Oracle Levenai [sp]. We want to get to the implementation first, and as I said earlier, we’re planning on getting all that infrastructure transitioned in the first part of 2005.

__________________________________________

Jason Crenshaw - Brait Specialized Funds

OK. So you anticipate switching over to the Oracle system in early ‘05; is that right?

__________________________________________

Christopher Carameros - Helen of Troy - Executive Vice President

Actually switching OXO over to Oracle in 2005. We’re going to be doing the Oracle transition within this next quarter.

__________________________________________

Jason Crenshaw - Brait Specialized Funds

OK. And is there any other sort of integration required beyond sort of switching the system over?

 
 
 
__________________________________________

Christopher Carameros - Helen of Troy - Executive Vice President

No, just actually utilizing our Far East and Hong Kong offices to help start doing the sourcing.

__________________________________________
 
Jason Crenshaw - Brait Specialized Funds

OK, great. The next question would be if we looked at--I think you gave cap ex guidance for the full year. If you look at the cash flow for fiscal 2005, what working capital assumptions do you think would be reasonable given the OXO business, given some of the other moving parts?

__________________________________________

Thomas Benson - Helen of Troy - Senior Vice President, CFO

No, this is just consistent with ours, so you can just take a look at that.

__________________________________________

Jason Crenshaw - Brait Specialized Funds

OK, great. Thanks, guys.

__________________________________________

Operator

Thank you. Our next question comes again from Doug Lane of Avondale Partners. Please state your question.

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Doug Lane - Avondale Partners

Hi. Just two quick follow-ups. Given--we’re hearing about softness at the end of June, just in general at retail and in the channels where you sell. Can you just give us some characterization of how your business has been so far this quarter vis-à-vis expectations? Then my second part is, you had a really good November quarter last year, and are you modeling in sales growth on top of a very strong November season last year?

__________________________________________

Man

As I mentioned in my comments, everybody seems to be concerned about retail sales and yet--our retail sales have been very, very strong. I mentioned our top customer--I can mention others that the sales growth is very, very strong. We didn’t see any slow down in June. Our sales were strong so far. Our quarter of June, July and August, sales are strong. We wouldn’t be coming out and saying sales are going to be up for the quarter 29 to 33 percent if sales weren’t strong, and we’re looking for a great third quarter; third quarter, of course, is our largest quarter. We’re very, very optimistic because of all the new plan-o-gram [sp] changes that have happened that we think we’re going to have increased sales. So whether we’re doing better than the norm or that’s the way we operate the business, we expect a good strong second quarter and third quarter and fourth quarter. Otherwise we wouldn’t be predicting these kinds of numbers.

__________________________________________

Doug Lane - Avondale Partners

Fair enough. OK. Thank you.

__________________________________________

Operator

Thank you. Our next question comes from Mike Carlotti from Palmyra Capital. Please state your question.

__________________________________________

Mike Carlotti - Palmyra Capital

Yeah, hi. Just a follow-up question on the 29 to 33 percent sales growth for Q2. If you exclude OXO, which will be I guess a full quarter of impact, Brute and I guess any other acquisitions that were made that were made actually after the second quarter of last year, what would be the core revenue growth that you’re expecting? Can you break out your expectations for OXO?

__________________________________________

Man

Yeah, I mentioned that in my comments also, that our core business will be up at least eight to 10 percent.

 
 
 
 
__________________________________________

Mike Carlotti - Palmyra Capital

OK. So the rest would be OXO and Brute?

__________________________________________

Man

Yes.

__________________________________________

Mike Carlotti - Palmyra Capital

OK, thank you.

__________________________________________

Operator

Mr. Rubin, there are no further questions in queue.

__________________________________________

Gerald Rubin - Helen of Troy - Chairman, President and CEO

Thank you everybody, for listening into our first quarter conference call. We’d love to have you back in our second quarter. Thank you all.

__________________________________________

Operator

Ladies and gentlemen, if you wish to access the replay for this call, you may do so by dialing 1-800-428-6051 or 973-709-2089 with a pass code ID number of 364223. This concludes our conference for today. Thank you all for participating and have a nice day. All parties may disconnect now.


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