(LXK) and (SMG) and a report from (ISCA), the race track operator, that second-quarter profits fell 40% from year-ago levels. It was hard to find any bright spots. Helen of Troy (HELE), a little cosmetics company from El Paso, Tex.
, with a stock market value of $872 million and annual revenues of $635 million, delivered a pleasant surprise. Helen of Troy, which makes and markets household appliances, beauty supplies and hair-care products under such brand names as Sunbeam, Vidal Sassoon, Revlon and Sable, reported sales of 32 cents a share for the quarter that ended May 31 (the company's first quarter). That was two cents a share ahead of what was expected, and 52% above last year's levels.
In a red-ink day on Wall Street, the stock was in the black for most of the day, but closed down 0.6%, at $28.52.
On the plus side, Helen of Troy reported a decrease in sales-related expenses, reaping some of the benefits of a multi-year retooling of its distribution and information systems. Completion of a new warehouse in Mississippi eliminated redundant warehousing and personnel expenses. But contributions from a recent acquisition, Belson Products, which supplies personal-care products primarily to salons, were disappointing.
Helen of Troy's sales for the quarter were up 7.5%, to $140.2 million; but analysts had been looking for $142 million.
Standard Poor's raised its target price for the stock by $3, saying Helen of Troy deserves to trade at $31 within a year's time, but, nonetheless, kept its "hold" rating on the stock. Wedbush Morgan, which downgraded the stock on June 29 from "buy" to "sell" and lowered its target price to $23, reiterated its stance after the earnings report.
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