Page 1

Helen of Troy Limited Reports First Quarter Fiscal 2022 Results Consolidated Net Sales Growth of 28.6 % ; Organic Business Net Sales Growth of 27.3 % GAAP Diluted Earnings Per Share ( “ EPS ” ) of $ 2.31 Adjusted Diluted EPS Growth of 37.5 % to $ 3.48 Initiates Fiscal 2022 Outlook : Consolidated GAAP Diluted EPS of $ 6.80 to $ 7.49 ; Core Diluted EPS of $ 6.60 to $ 7.28 Consolidated Adjusted Diluted EPS of $ 10.46 to $ 10.97 ; Core Adjusted Diluted EPS of $ 10.25 to $ 10.75 Consolidated Net Sales of $ 1.93 to $ 1.98 Billion ; Core Net Sales of $ 1.90 to $ 1.95 Billion El Paso , Texas , July 8 , 2021 _ Helen of Troy Limited ( NASDAQ : HELE ) , designer , developer and worldwide marketer of consumer brand - name housewares , health and home , and beauty products , today reported results for the three - month period ended May 31 , 2021 . Executive Summary - First Quarter of Fiscal 2022 • • • • Consolidated net sales revenue increase of 28.6 % to $ 541.2 million , including : о An increase in Leadership Brand net sales of 22.9 % ° ° о An increase in online channel net sales of approximately 4 % Organic business net sales growth of 27.3 % Core business net sales growth of 28.9 % The Company is in discussions with the U.S. Environmental Protection Agency ( the " EPA ” ) regarding concerns that packaging claims on certain products in its U.S. water and air filtration and a limited subset of humidifier products are not in compliance with the EPA's strict interpretation of specific regulations . On May 27 , 2021 , the Company voluntarily implemented a temporary stop shipment action while it continues to work with the EPA to resolve outstanding concerns on the affected products . The EPA has not raised any product quality , safety or performance issues . The Company has already addressed the EPA's concerns on the water filtration products by making modest changes to our packaging and have resumed shipping those products . The Company expects to similarly resolve the EPA's concerns on air and humidification packaging and then resume shipping of those products as soon as operationally possible . During the first quarter of fiscal 2022 , the Company recorded a $ 13.1 million charge referred to as " EPA compliance costs " in cost of goods sold to reflect the costs of its compliance plans with respect to inventory on hand at the end of the quarter . GAAP consolidated operating income of $ 64.8 million , or 12.0 % of net sales , which includes $ 13.1 million in EPA compliance costs , compared to $ 57.0 million , or 13.5 % of net sales , for the same period last year Non - GAAP consolidated adjusted operating income increase of 33.6 % to $ 95.0 million , or 17.5 % of net sales , compared to $ 71.1 million , or 16.9 % of net sales , for the same period last year GAAP diluted EPS of $ 2.31 , which includes EPA compliance costs of $ 0.52 per share , compared to $ 2.37 for the same period last year Non - GAAP adjusted diluted EPS increase of 37.5 % to $ 3.48 , compared to $ 2.53 for the same period last year