Revenue during the quarter went down marginally by 0.24 percent to $444.41 million from $445.50 million in the previous year period. Gross margin for the quarter expanded 273 basis points over the previous year period to 43.70 percent. Total expenses were 85.75 percent of quarterly revenues, down from 87.51 percent for the same period last year. This has led to an improvement of 176 basis points in operating margin to 14.25 percent.

Operating income for the quarter was $63.32 million, compared with $55.63 million in the previous year period.

However, the adjusted operating income for the quarter stood at $73.42 million compared to $71.41 million in the prior year period. At the same time, adjusted operating margin improved 49 basis points in the quarter to 16.52 percent from 16.03 percent in the last year period.

Julien R. Mininberg, chief executive officer, stated: "Our transformation strategy, combined with the ongoing benefits of our diversified business model, led to a strong quarter of profitability highlighted by a 270 basis point increase in gross profit margin and a 14.5% increase in adjusted EPS. We were pleased to achieve this performance on slightly lower consolidated net revenue, driven by the continued strength of our Hydro Flask business, our efforts to sweeten our core business sales mix and further operational efficiencies from our shared services platform. Our focus on the disciplined management of our business and balance sheet resulted in a 149% increase in cash flow from operations, allowing us to repurchase $75 million of our common shares with only a small increase in leverage."

For fiscal year 2017, Helen of Troy Limited forecasts revenue to be in the range of $1,520 million to $1,550 million. The company expects diluted earnings per share to be in the range of $4.72 to $4.92. The company expects diluted earnings per share to be in the range of $6.20 to $6.50 on adjusted basis.

For the fourth-quarter 2017, Helen of Troy Limited expects diluted earnings per share to be in the range of $0.97 to $1.17. On an adjusted basis, the company expects diluted earnings per share to be in the range of $1.25 to $1.55.

Debt moves up
Helen of Troy Limited has witnessed an increase in total debt over the last one year. It stood at $564.90 million as on Nov. 30, 2016, up 20.08 percent or $94.48 million from $470.42 million on Nov. 30, 2015. Total debt was 29.90 percent of total assets as on Nov. 30, 2016, compared with 26.39 percent on Nov. 30, 2015. Debt to equity ratio was at 0.58 as on Nov. 30, 2016, up from 0.49 as on Nov. 30, 2015. Interest coverage ratio deteriorated to 17.47 for the quarter from 20.30 for the same period last year.