Helen of Troy Limited (HELE) reported its third quarter earnings on Wednesday, January 8. Despite reporting better-than-expected revenue, the company’s stock edged 1% lower after the release. 

Helen of Troy reported sales of $530.71 million in the third quarter. This was a decline of 3.4% from $549.61 million reported at this time last year and below analysts’ expectations of $532.91 million.

“Our third quarter results were within our top and bottom-line expectations even as we continued to navigate a difficult consumer spending environment,” said Helen of Troy’s CEO, Noel Geoffroy. “Overall, I remain optimistic about the opportunities ahead of us. We believe we are building a stronger, more collaborative, data-driven, and disciplined Helen of Troy that is better positioned to maximize the potential of our brands globally and ultimately to deliver consistent long-term growth and increased value for our stakeholders.”

Helen of Troy posted net income of $49.62 million or $2.17 per diluted share. This was down from net income of $75.90 million or $3.19 per diluted share at this time last year.

The parent company of well-known brands such as Hydro Flask, OXO, Braun and Honeywell reported a 4.3% increase in its Home & Outdoor revenue to $246.1 million. This increase was primarily driven by gains in retailer distribution and club channel sales for insulated beverageware as well as strong demand for technical packs. Helen of Troy saw a 9.3% decrease in revenue for its Beauty & Wellness segment to $284.6 million. Helen of Troy incurred $3.52 million in pre-tax restructuring charges as it continues to implement Project Pegasus, a global restructuring plan designed to improve efficiency and reduce costs. The company updated its fiscal 2025 outlook and expects net sales to be in the range of $1.89 billion to $1.91 billion.

Helen of Troy Limited (HELE) shares ended the week at $61.98, up 5% for the week.

Albertsons Releases Quarterly Report

Albertsons Companies, Inc. (ACI) reported its third quarter earnings on Wednesday, January 8. The grocery company’s shares rose nearly 2% after reporting increased revenue and earnings for the quarter.

The company reported net sales of $18.77 billion for the quarter. This is up from $18.56 billion reported at the same time last year but lower than analysts’ expectations of $18.81 billion.

"We delivered solid operating and financial performance in the third quarter of fiscal 2024 in an environment where the consumer remains cautious," said Albertson’s CEO, Vivek Sankaran. "Investments in our Customers for Life strategy drove increased digital engagement across our platforms, evidenced by strong growth in our digital sales, pharmacy operations, and membership in our loyalty program. We want to thank our teams for their ongoing commitment to serving our customers and supporting the communities in which we operate, especially during the holiday season."

The company reported net income of $400.6 million or $0.69 per adjusted share. This was an increase from the same quarter last year when Albertsons reported net income of $361.4 million or $0.62 per adjusted share.

Albertsons saw a 2.0% increase in identical sales driven by strong growth in pharmacy sales. Digital sales increased by 23% and the number of loyalty members grew by 15% to 44.3 million members. Albertsons gross margin rate decreased to 27.9% compared to 28.0% during the third quarter of last year. For the full fiscal year, the company raised its guidance and now expects earnings per share between $2.25 to $2.31 as compared to previous guidance of $2.20 to $2.30. Albertsons’ Board of Directors declared a quarterly cash dividend of $0.15 per common share payable on February 7, 2025, to stockholders of record on January 24, 2025.

Albertsons Companies, Inc. (ACI) shares ended the week at $19.95, up 1% for the week.

MSC Industrial Reports First Quarter Results

MSC Industrial Supply Co. (MSM) reported its first quarter earnings on Wednesday, January 8. The industrial supplier’s stock closed almost 2% lower on the day despite reporting revenue that exceeded analysts’ expectations.

MSC Industrial reported quarterly revenue of $928.48 million. This was down over 2.7% from revenue of $953.97 million during the same quarter last year and higher than analysts’ expectations of $905.01 million in revenue.

“Our first quarter results reflect solid performance in a challenging operating environment,” said MSC Industrial CEO, Erik Gershwind. “During the quarter, we returned to growth in the Public Sector and continued expanding our solutions footprint. While this is an encouraging start to the fiscal year, there is room for improvement, which we are addressing through the three pillars of our Mission Critical strategy.”

For the quarter, MSC Industrial reported net income of $46.62 million or $0.83 per diluted share. This was a decrease from net income of $69.35 million or $1.22 per diluted share in the same quarter last year.

MSC Industrial, a distributor of metalworking and maintenance, repair and operations products, reported operating income totaling $72.28 million for the quarter, down 28.8% from the same quarter the prior year. The company’s operating margin also decreased to 7.8% from 10.6%. MSC Industrial reported that average daily sales declined 2.7%, better than the decline of 5.5% to 4.5% that was expected. According to the company’s guidance for the second quarter of fiscal 2025, it expects average daily sales in the next quarter to decline between 5.0% to 3.0%.

MSC Industrial (MSM) shares ended the week at $79.90, up 1% for the week.

The Dow started the week at 42,836 and closed at 41,938 on 1/10. The S&P 500 started the week at 5,983 and closed at 5,827. The NASDAQ started the week at 19,852 and closed at 19,162.

U.S. Treasury yields rose after Minutes from the Federal Reserve’s December policy meeting were released, and investors assessed the possibility of future interest rate cuts. Yields continued higher toward the end of the week as the latest employment data showed the labor market remains strong.

On Wednesday, the Federal Reserve released the Minutes from the Federal Open Market Committee (FOMC) Meeting on December 17 and 18, 2024. At the meeting, policy makers agreed to cut the benchmark rate by a quarter percentage point to a range of 4.25% to 4.5%. While Fed officials agreed to cut rates, some participants noted that progress towards lowering inflation had stalled. They also revised the 2025 rate reductions forecast from four to two compared to the previous estimate made during the September meeting.

“Almost all participants judged that upside risks to the inflation outlook had increased,” noted the Minutes. “As reasons for this judgment, participants cited recent stronger-than-expected readings on inflation and the likely effects of potential changes in trade and immigration policy.”

The benchmark 10-year Treasury note yield opened the week of January 6 at 4.60% and traded as high as 4.73% on Wednesday. The 30-year Treasury bond opened the week at 4.81% and traded as high as 4.97% on Wednesday.

On Wednesday, the U.S. Department of Labor reported that initial claims for unemployment decreased by 10,000 to 201,000 for the week ending January 4. Continuing unemployment claims increased by 33,000, reaching 1.87 million. On Friday, the Labor Department released its monthly jobs report for December which showed an increase of 256,000 jobs, higher than the 155,000 jobs that economists expected.

“The US labor market ended 2024 on a firm footing with strong employment growth, falling unemployment and resilient wage pressures,” wrote head of multi-sector fixed income investing at Goldman Sachs Asset Management, Lindsay Rosner. “The strength of today’s December jobs report puts to rest lingering chances of a [quarter-point] cut in January and shifts the focus to the March meeting, where further rate cuts will depend on progress on inflation.”

The 10-year Treasury note yield finished the week of 1/6 at 4.77%, while the 30-year Treasury note yield finished the week at 4.95%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, January 9. The survey showed the 30-year fixed rate inching near the 7% range.

This week, the 30-year fixed rate mortgage averaged 6.93%, up from last week’s average of 6.91%. Last year at this time, the 30-year fixed rate mortgage averaged 6.66%.

The 15-year fixed rate mortgage averaged 6.14% this week, up from last week’s 6.13%. During the same week last year, the 15-year fixed rate mortgage averaged 5.87%.

“In the first full week of the new year, the 30-year fixed-rate mortgage remained elevated at just under 7%,” said Freddie Mac’s Chief Economist, Sam Khater. “The continued strength of the economy has put upward pressure on mortgage rates, and along with high home prices, continues to impact housing affordability. The lack of entry-level supply also remains an issue, especially for those looking to become first-time homeowners.”

Based on published national averages, the savings rate was 0.42% as of 12/16. The one-year CD averaged 1.83%.

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