Helen of Troy Limited Reports Results For the Second Quarter and First Six Months of Fiscal Year 2014

  Helen of Troy Limited Reports Results For the Second Quarter and First Six
  Months of Fiscal Year 2014

                     *Second Quarter Diluted EPS of $0.72
  *Core Net Sales Growth of 11.1% Compared to Second Quarter of Prior Fiscal
    Year

Business Wire

EL PASO, Texas -- October 9, 2013

Helen of Troy Limited (NASDAQ, NM:HELE), designer, developer and worldwide
marketer of brand-name houseware, healthcare/home environment and personal
care consumer products, today reported results for the three and six month
periods ended August 31, 2013.

Gerald J. Rubin, Chairman of the Board, Chief Executive Officer and President,
commenting on the Company's fiscal year 2014 second quarter results, stated,
“We are pleased to report solid performance in the second quarter, highlighted
by sales growth across all our operating segments and increased consolidated
adjusted EBITDA and net income despite product cost and currency headwinds.
The period saw particular strength in our Healthcare/Home Environment segment,
which produced a 20.4% increase in revenue benefiting from our refined
promotion and marketing strategy and favorable weather conditions in Europe.
Innovation in product and design continues to be a positive driver for our
Housewares segment leading to increases in shelf space, assortment expansion
and new distribution. Finally, our Personal Care segment benefited from a new
product distribution arrangement in Europe specific to the current fiscal year
and increased sales in our professional appliance business.

In the first week of September 2013, we commenced initial operations at our
new 1.3 million square foot distribution facility in Mississippi, on time and
within budget, and converted our Healthcare/Home environment segment onto our
global ERP system, positioning us well to accommodate anticipated future
growth.”

Second Quarter of Fiscal Year 2014 Consolidated Operating Results

  *Net sales revenue increased 11.1% to a record $319.4 million compared to
    $287.4 million in the second quarter of fiscal year 2013.
  *Gross profit margin was 38.6% compared to 40.7% for the same period last
    year, reflecting the effect of foreign currency exchange rates, product
    cost increases across all segments and product mix.
  *Selling, general and administrative expense was 29.1% as a percent of net
    sales compared to 30.0% for the same period last year, a decrease of 0.9
    percentage points. The decrease primarily reflects lower outbound freight
    and distribution costs, as well as reduced media advertising costs. These
    expense reductions were partially offset by higher incentive compensation
    costs and higher cooperative advertising costs.
  *Operating income was $30.4 million, compared to operating income of $30.8
    million in the same period last year.
  *Net income was $23.3 million, or $0.72 per fully diluted share on 32.3
    million weighted average shares outstanding, which compares to net income
    in the second quarter of fiscal year 2013 of $23.0 million, or $0.72 per
    fully diluted share on 31.8 million weighted average shares outstanding.
  *Adjusted EBITDA was $41.8 million compared to $41.1 million in the same
    period last year.

First Six Months of Fiscal Year 2014 Consolidated Operating Results

  *Net sales revenue increased 6.2% to a record $623.9 million compared to
    $587.6 million in the first six months of fiscal year 2013.
  *Gross profit margin was 39.0% compared to 40.5% for the same period last
    year, reflecting increased promotional program costs, the effect of
    foreign currency exchange rates, product cost increases across all
    segments and product mix.
  *Selling, general and administrative expense was 28.9% as a percent of net
    sales compared to 30.0% for the same period last year. The decrease
    reflects lower outbound freight and distribution costs, reduced media
    advertising costs and a gain from a litigation settlement. These expense
    reductions were partially offset by higher incentive compensation costs
    and higher cooperative advertising costs.
  *Operating income was $51.0 million, which includes the impact of $12.0
    million in non-cash asset impairment charges related to certain trademarks
    in the Company’s Personal Care segment in the first quarter of fiscal
    2014, compared to operating income of $62.0 million in the same period
    last year.
  *Net income was $37.7 million, or $1.17 per fully diluted share on 32.2
    million weighted average shares outstanding, which compares to net income
    in the first six months of fiscal year 2013 of $46.4 million, or $1.46 per
    fully diluted share on 31.8 million weighted average shares outstanding.
  *Adjusted operating income (operating income without non-cash asset
    impairment charges) was $63.0 million compared to $62.0 million for the
    same period last year, an increase of 1.7%.
  *Adjusted income (net income without non-cash asset impairment charges) was
    $49.7 million, or $1.54 per fully diluted share, compared to $46.4
    million, or $1.46 per fully diluted share, in the first six months of
    fiscal year 2013. This represents an increase in adjusted income of 7.1%
    and in adjusted diluted EPS of 5.5%.
  *Adjusted EBITDA was $86.4 million compared to $82.9 million in the same
    period last year.

Balance Sheet Highlights

  *Cash and cash equivalents totaled $10.1 million at August 31, 2013,
    compared to $21.8 million at August 31, 2012.
  *Total short and long-term debt declined by $108.4 million to $227.6
    million at August 31, 2013, compared to $336.0 million at August 31, 2012.
  *Accounts receivables turnover was 61.9 days at August 31, 2013, compared
    to 61.1 days at August 31, 2012.
  *Inventory was $306.9 million at August 31, 2013, compared to $318.7
    million at August 31, 2012.

Fiscal Year 2014 Annual Outlook

For fiscal year 2014, the Company continues to expect net sales revenue in the
range of $1.29 billion to $1.32 billion, and GAAP diluted EPS in the range of
$3.13 to $3.23, which includes the non-cash asset impairment charges of $0.37
per share recorded in the first quarter of fiscal year 2014. The Company
expects adjusted diluted EPS to be in the range of $3.50 to $3.60, which is
consistent with the Company’s previous guidance. The earnings guidance
reflects the negative impact of the difficult retail environment, a normal
cold/cough/flu season, product cost increases across all segments and an
increase in non-cash compensation expense for the Company’s CEO. The Company
expects capital expenditures for fiscal year 2014 to be in the range of $40
million to $45 million, with approximately $33 million related to the
completion of the Company’s new 1.3 million square foot distribution center in
Olive Branch, Mississippi.

Conference Call and Webcast

The Company will conduct a teleconference in conjunction with today's earnings
release. The teleconference begins at 4:45 pm Eastern Time today, Wednesday,
October 9, 2013. Institutional investors and analysts interested in
participating in the call are invited to dial (888) 504-7963. The conference
call will also be available to interested parties through a live webcast at
www.hotus.com. Please visit the website and select the “Investor Relations”
link at least 15 minutes prior to the start of the call to register and
download any necessary software.

A telephone replay of the call will be available until 11:59 pm Eastern Time
on October 16, 2013, by dialing (877) 870-5176 (domestic) or (858) 384-5517
(international) and entering the conference replay number: 3190673. Please
note participants must enter the conference identification number in order to
access the replay.

About Helen of Troy Limited:

About Helen of Troy Limited: Helen of Troy Limited is a leading global
consumer products company offering creative solutions for its customers
through a strong portfolio of well-recognized and widely-trusted brands,
including: Housewares: OXO®, Good Grips®, Soft Works®, OXO tot® and OXO
Steel®; Healthcare/Home Environment: Vicks®, Braun®, Honeywell®, PUR®,
Febreze®, Stinger®, Duracraft® and SoftHeat®; and Personal Care: Revlon®,
Vidal Sassoon®, Dr. Scholl's®, Pro Beauty Tools®, Sure®, Pert®, Infusium23®,
Brut®, Ammens®, Hot Tools®, Bed Head®, Karina®, Ogilvie® and Gold 'N Hot®. The
Honeywell® trademark is used under license from Honeywell International Inc.
The Vicks®, Braun®, Febreze® and Vidal Sassoon® trademarks are used under
license from The Procter & Gamble Company. The Revlon® trademark is used under
license from Revlon Consumer Products Corporation. The Bed Head® trademark is
used under license from Unilever PLC. The Dr. Scholl's® trademark is used
under license from MSD Consumer Care, Inc.

For in-depth information about Helen of Troy, please visit www.hotus.com  .

Non-GAAP Financial Measures:

The Company reports and discusses its operating results using financial
measures consistent with accounting principles generally accepted in the
United States of America (“GAAP”). To supplement its presentation, the Company
discloses certain financial measures that may be considered non-GAAP financial
measures, such as adjusted operating income, adjusted income, adjusted diluted
EPS, EBITDA and adjusted EBITDA, which are presented in an accompanying table
to this press release along with a reconciliation of these financial measures
to their corresponding GAAP based measures presented in the Company’s
consolidated condensed statements of income.

Forward Looking Statements:

This press release may contain forward-looking statements, which are subject
to change. The forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Any or all
of the forward-looking statements may turn out to be wrong. They can be
affected by inaccurate assumptions or by known or unknown risks and
uncertainties. Many of these factors will be important in determining the
Company's actual future results. Consequently, no forward-looking statement
can be guaranteed. Actual future results may vary materially from those
expressed or implied in any forward-looking statements. The forward-looking
statements are qualified in their entirety by a number of risks that could
cause actual results to differ materially from historical or anticipated
results. Generally, the words "anticipates", "estimates", "believes",
"expects", "plans", "may", "will", "should", "seeks", "project", "predict",
"potential", "continue", "intends", and other similar words identify
forward-looking statements. The Company cautions readers not to place undue
reliance on 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. The forward-looking statements contained in this press release
should be read in conjunction with, and are subject to and qualified by, the
risks described in the Company's Form10-K for the year ended February 28,
2013 and in our other filings with the SEC. Investors are urged to refer to
the risk factors referred to above for a description of these risks. Such
risks include, among others, the departure and recruitment of key personnel,
the Company's ability to deliver products to our customers in a timely manner,
the Company's geographic concentration of certain U.S. distribution
facilities, which increases our exposure to significant shipping disruptions
and added shipping and storage costs, difficulties encountered during the
transition to the Company’s new distribution facility could interrupt the
Company’s logistical systems and cause shipping disruptions, the Company's
projections of product demand, sales, net income and earnings per share are
highly subjective and our future net sales revenue, net income and earnings
per share could vary in a material amount from such projections, expectations
regarding acquisitions and the integration of acquired businesses, the
Company's relationship with key customers and licensors, the costs of
complying with the business demands and requirements of large sophisticated
customers, the Company's dependence on foreign sources of supply and foreign
manufacturing, the impact of changing costs of raw materials and energy on
cost of goods sold and certain operating expenses, circumstances that may
contribute to future impairment of goodwill, intangible or other long-lived
assets, the risks associated with the use of trademarks licensed from and to
third parties, our dependence on the strength of retail economies and
vulnerabilities to an economic downturn, the Company's ability to develop and
introduce innovative new products to meet changing consumer preferences,
disruptions in U.S., European and other international credit markets, exchange
rate risks, trade barriers, exchange controls, expropriations, and other risks
associated with foreign operations, the Company's debt leverage and the
constraints it may impose, the costs, complexity and challenges of upgrading
and managing our global information systems, the risks associated with
information security breaches, the risks associated with tax audits and
related disputes with taxing authorities, potential changes in laws, including
tax laws, and the Company's ability to continue to avoid classification as a
controlled foreign corporation.

                                                                               
HELEN OF TROY LIMITED AND SUBSIDIARIES

Consolidated Condensed Statements of Income and Reconciliation of Non-GAAP Financial

Measures – Adjusted Operating Income and Adjusted Income

(unaudited)

(in thousands, except per share data)
                                                                                     
                 Three Months Ended August 31,
                                          2013                               2012
                 As Reported (GAAP)        Adjustments     Adjusted                As Reported (GAAP)
                                             (1)             (non-GAAP)(1)(2)
                                                                                                
Sales revenue,   $ 319,387       100.0 %     $ -             $ 319,387   100.0 %     $ 287,411       100.0 %
net
Cost of goods     196,132    61.4  %      -             196,132  61.4  %      170,381    59.3  %
sold
Gross profit       123,255       38.6  %       -               123,255   38.6  %       117,030       40.7  %
                                                                                                     
Selling,
general, and       92,899        29.1  %       -               92,899    29.1  %       86,189        30.0  %
administrative
expense
Asset
impairment        -          0.0   %      -             -        0.0   %      -          0.0   %
charges
Operating         30,356     9.5   %      -             30,356   9.5   %      30,841     10.7  %
income
                                                                                                     
Other income
(expense):
Nonoperating       56            0.0   %       -               56        0.0   %       31            0.0   %
income, net
Interest          (2,192  )   -0.7  %      -             (2,192  ) -0.7  %      (3,130  )   -1.1  %
expense
Total other       (2,136  )   -0.7  %      -             (2,136  ) -0.7  %      (3,099  )   -1.1  %
expense
Income before      28,220        8.8   %       -               28,220    8.8   %       27,742        9.7   %
income taxes
                                                                                                     
Income tax        4,902      1.5   %      -             4,902    1.5   %      4,774      1.7   %
expense
Net income       $ 23,318     7.3   %     $ -            $ 23,318   7.3   %     $ 22,968     8.0   %
                                                                                                     
Diluted
earnings per     $ 0.72                      $ -             $ 0.72                  $ 0.72
share
                                                                                                     
Weighted
average shares
of common
stock used in      32,272                      32,272          32,272                  31,846
computing
diluted
earnings per
share
                                                                                                     
                                                                                                     
                                                                                                     
                 Six Months Ended August 31,
                                          2013                              2012
                 As Reported (GAAP)          Adjustments     Adjusted                As Reported (GAAP)
                                             (1)             (non-GAAP)(1)(2)
                                                                                                     
Sales revenue,   $ 623,903       100.0 %     $ -             $ 623,903   100.0 %     $ 587,622       100.0 %
net
Cost of goods     380,484    61.0  %      -             380,484  61.0  %      349,444    59.5  %
sold
Gross profit       243,419       39.0  %       -               243,419   39.0  %       238,178       40.5  %
                                                                                                     
Selling,
general, and       180,389       28.9  %       -               180,389   28.9  %       176,189       30.0  %
administrative
expense
Asset
impairment        12,049     1.9   %      (12,049 )      -        0.0   %      -          0.0   %
charges
Operating         50,981     8.2   %      12,049        63,030   10.1  %      61,989     10.5  %
income
                                                                                                     
Other income
(expense):
Nonoperating       140           0.0   %       -               140       0.0   %       54            0.0   %
income, net
Interest          (5,134  )   -0.8  %      -             (5,134  ) -0.8  %      (6,442  )   -1.1  %
expense
Total other       (4,994  )   -0.8  %      -             (4,994  ) -0.8  %      (6,388  )   -1.1  %
expense
Income before      45,987        7.4   %       12,049          58,036    9.3   %       55,601        9.5   %
income taxes
                                                                                                     
Income tax        8,278      1.3   %      15            8,293    1.3   %      9,161      1.6   %
expense
Net income       $ 37,709     6.0   %     $ 12,034       $ 49,743   8.0   %     $ 46,440     7.9   %
                                                                                                     
Diluted
earnings per     $ 1.17                      $ 0.37          $ 1.54                  $ 1.46
share
                                                                                                     
Weighted
average shares
of common
stock used in      32,226                      32,226          32,226                  31,843
computing
diluted
earnings per
share
                                                                                                     

                                                            
HELEN OF TROY LIMITED AND SUBSIDIARIES

Net Sales Revenue by Segment

(unaudited)

(in thousands)
                                                                      
                Three Months Ended                                    % of Sales Revenue,
                August 31,                                            net
             2013        2012        $ Change    %        2013      2012
                                                           Change
                                                                             
Sales
revenue by
segment,
net
Housewares      $ 70,165      $ 64,570      $ 5,595        8.7  %     22.0  %     22.5  %
Healthcare
/ Home            133,044       110,477       22,567       20.4 %     41.7  %     38.4  %
Environment
Personal       116,178    112,364    3,814     3.4  %   36.4  %   39.1  %
Care
Total sales
revenue,       319,387    287,411    31,976    11.1 %   100.0 %   100.0 %
net
                                                                                  
                                                                                  
                Six Months Ended August                               % of Sales Revenue,
                31,                                                   net
             2013        2012        $ Change    %        2013      2012
                                                           Change
                                                                                  
Sales
revenue by
segment,
net
Housewares      $ 133,695     $ 124,819     $ 8,876        7.1  %     21.4  %     21.2  %
Healthcare
/ Home            258,646       232,887       25,759       11.1 %     41.5  %     39.6  %
Environment
Personal       231,562    229,916    1,646     0.7  %   37.1  %   39.1  %
Care
Total sales
revenue,       623,903    587,622    36,281    6.2  %   100.0 %   100.0 %
net
                                                                                        

                                              
HELEN OF TROY LIMITED AND SUBSIDIARIES
Selected Consolidated Balance Sheet Information
(unaudited)
(in thousands)
                                                      
                                      8/31/2013     8/31/2012
                                                      
      Cash and cash equivalents       $ 10,097        $ 21,767
                                                      
      Receivables                       231,309         208,284
                                                      
      Inventory                         306,854         318,697
                                                      
      Total assets, current             587,903         574,149
                                                      
      Total assets                      1,518,171       1,509,062
                                                      
      Total liabilities, current        360,673         401,088
                                                      
      Total long-term liabilities       186,775         255,614
                                                      
      Stockholders' equity              970,723         852,360
                                                        

                                                
SELECTED OTHER DATA

Reconciliation of Non-GAAP Financial Measures - EBITDA (Earnings Before
Interest, Taxes, Depreciation

and Amortization) and Adjusted EBITDA

(unaudited)

(in thousands)
                                                     
                     Three Months Ended August       Six Months Ended August
                     31,                             31,
                     2013           2012           2013           2012
                                                                      
Net income           $  23,318        $  22,968      $  37,709        $ 46,440
                                                                      
Interest                2,208            3,115          5,128           6,400
expense, net
                                                                      
Income tax              4,902            4,774          8,278           9,161
expense
                                                                      
Depreciation and
amortization,
excluding              7,991           8,695         16,438         17,795
amortized
interest
                                                                      
EBITDA (Earnings
before interest,
taxes,               $  38,419        $  39,552      $  67,553        $ 79,796
depreciation and
amortization)
(2)
                                                                      
                                                                      
Adjusted EBITDA:
                                                                      
EBITDA, as           $  38,419        $  39,552      $  67,553        $ 79,796
calculated above
                                                                      
Add: Non-cash
asset impairment        -                -              12,049          -
charges (1)
Non-cash
share-based            3,419           1,527         6,797          3,129
compensation (3)
                                                                      
Adjusted EBITDA      $  41,838        $  41,079      $  86,399        $ 82,925
(2)
                                                                        

                                                           
Reconciliation of Fiscal Year 2014 Reported Diluted Earnings Per Share (EPS)
to Adjusted Diluted EPS to

Exclude Non-Cash Asset Impairment Charges

(Unaudited)
                                                                  
                             Year-To-Date        Guidance for     Guidance for
                                                 the              the
                             Actual Through      Balance of       Fiscal Year
                                                 the              Ended
                             August 31, 2013     Fiscal Year      February 28,
                                                                  2013
                             (Six Months)        (Six Months)     (Twelve
                                                                  Months)
                                                                  
Diluted EPS, as              $      1.17         $   1.96 - $     $   3.13 - $
reported (GAAP)                                      2.06             3.23
                                                                  
Non-cash asset                     0.37            -               0.37
impairment Charges (1)
                                                                  
Adjusted Diluted EPS         $      1.54         $   1.96 - $     $   3.50 - $
(non-GAAP) (2)                                       2.06             3.60
                                                                      

    
HELEN OF TROY LIMITED AND SUBSIDIARIES
Notes to Press Release
      Adjustments relate to items that are excluded from the “As Reported
      (GAAP)” results to arrive at the “Adjusted (non-GAAP)” results.
      Adjustments consist of non-cash asset impairment charges of $12.05
      million ($12.03 million after tax) for the six months ended August 31,
      2013 as a result of our annual evaluation of goodwill and
(1)   indefinite-lived intangible assets for impairment during the first
      quarter of fiscal year 2014. The non-cash charges relate to certain
      trademarks in our Personal Care segment, which were written down to
      their estimated fair value, determined on the basis of future discounted
      cash flows using the relief from royalty valuation method. There were no
      comparable adjustments for the three months ended August 31, 2013, or
      for the three- and six-months ended August 31, 2012.
      
      This press release contains non-GAAP financial measures. Adjusted
      operating income, adjusted income, adjusted diluted EPS, EBITDA and
      adjusted EBITDA (“Non-GAAP measures”) that are discussed in the
      accompanying press release or in the preceding tables are considered
      non-GAAP financial information as contemplated by SEC Regulation G, Rule
      100. Accordingly, we are providing the preceding tables that reconcile
      these measures to their corresponding GAAP based measures presented in
      our Consolidated Condensed Statements of Income in the accompanying
      tables to the press release. The Company believes that these non-GAAP
      measures provide useful information to management and investors
      regarding financial and business trends relating to its financial
      condition and results of operations. The Company believes that these
(2)   non-GAAP measures, in combination with the Company's financial results
      calculated in accordance with GAAP, provides investors with additional
      perspective. The Company further believes that the items excluded from
      certain non-GAAP measures do not accurately reflect the underlying
      performance of its continuing operations for the period in which they
      are incurred, even though some of these excluded items may be incurred
      and reflected in the Company's GAAP financial results in the foreseeable
      future. The material limitation associated with the use of the non-GAAP
      financial measures is that the non-GAAP measures do not reflect the full
      economic impact of the Company's activities. These non-GAAP measures are
      not prepared in accordance with GAAP, are not an alternative to GAAP
      financial information, and may be calculated differently than non-GAAP
      financial information disclosed by other companies. Accordingly, undue
      reliance should not be placed on non-GAAP information.
      
      Adjustment consists of non-cash share-based compensation expense
      associated with share based awards outstanding under two expired and
      three active share-based compensation plans. These awards consist of
(3)   stock options granted to certain officers, employees and new hires,
      restricted stock grants to certain members of the Company’s Board of
      Directors and performance based restricted stock awards and units
      granted to our Chief Executive Officer under the terms of his employment
      agreement.

Contact:

Helen of Troy Limited
John Boomer, 915-225-8050
Senior Vice President
or
Investors:
ICR, Inc.
Allison Malkin / Anne Rakunas
203-682-8200 / 310-954-1113