Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __ to __

Commission File Number: 001-14669

HELEN OF TROY LIMITED

(Exact name of registrant as specified in its charter)


Bermuda						74-2692550
(State or other jurisdiction						(I.R.S. Employer
of incorporation or organization)						Identification No.)

Clarendon House

2 Church Street

Hamilton, Bermuda

(Address of principal executive offices)

1 Helen of Troy Plaza

El Paso, Texas 79912

(Registrant's United States Mailing Address) (Zip Code)

(915) 225-8000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Shares, $0.10 par value per share

HELE

The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of June 28, 2024, there were 22,813,316 common shares, $0.10 par value per share, outstanding.

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HELEN OF TROY LIMITED AND SUBSIDIARIES

FORM 10-Q

TABLE OF CONTENTS


		PAGE

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements	2

	Note 1 - Basis of Presentation and Related Information	7
	Note 2 - New Accounting Pronouncements	8
	Note 3 - Accrued Expenses and Other Current Liabilities	8
	Note 4 - Share-Based Compensation Plans	8
	Note 5 - Repurchases of Common Stock	9
	Note 6 - Restructuring Plan	10
	Note 7 - Commitments and Contingencies	11
	Note 8 - Long-Term Debt	13
	Note 9 - Fair Value	14
	Note 1 0 - Financial Instruments and Risk Management	15
	Note 1 1 - Accumulated Other Comprehensive Income (Loss)	18
	Note 12 - Segment and Geographic Information	18
	Note 1 3 - Income Taxes	19
	Note 1 4 - Earnings Per Share	20


Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39

Item 4.	Controls and Procedures	39

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	40

Item 1A.	Risk Factors	40

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41

Item 5.	Other Information	41

Item 6.	Exhibits	42

SIGNATURES		43

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)


(in thousands, except shares and par value)	May 31, 2024		February 29, 2024
Assets
Assets, current:
Cash and cash equivalents	$	16,148	$	18,501
Receivables, less allowances of $7,511 and $7,481	328,097		394,536
Inventory	444,749		395,995
Prepaid expenses and other current assets	30,590		27,012
Income taxes receivable	11,979		7,874

Total assets, current	831,563		843,918

Property and equipment, net of accumulated depreciation of $178,319 and $169,021	334,417		336,646
Goodwill	1,066,730		1,066,730
Other intangible assets, net of accumulated amortization of $191,403 and $186,882	532,378		536,696
Operating lease assets	36,887		35,962
Deferred tax assets, net	3,781		3,662

Other assets	15,195		15,008
Total assets	$	2,820,951	$	2,838,622

Liabilities and Stockholders' Equity
Liabilities, current:
Accounts payable	$	245,216	$	245,349
Accrued expenses and other current liabilities	163,561		181,391
Income taxes payable	11,867		17,821
Long-term debt, current maturities	7,031		6,250

Total liabilities, current	427,675		450,811

Long-term debt, excluding current maturities	741,346		659,421
Lease liabilities, non-current	38,241		37,262
Deferred tax liabilities, net	52,036		41,253
Other liabilities, non-current	12,153		12,433
Total liabilities	1,271,451		1,201,180

Commitments and contingencies

Stockholders' equity:
Cumulative preferred stock, non-voting, $1.00 par. Authorized 2,000,000 shares; none issued	—		—
Common stock, $0.10 par. Authorized 50,000,000 shares; 22,810,412 and 23,751,258 shares issued and outstanding	2,281		2,375
Additional paid in capital	350,200		348,739
Accumulated other comprehensive income	2,797		2,099
Retained earnings	1,194,222		1,284,229
Total stockholders' equity	1,549,500		1,637,442
Total liabilities and stockholders' equity	$	2,820,951	$	2,838,622

See accompanying notes to condensed consolidated financial statements.

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HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Unaudited)


	Three Months Ended May 31,
(in thousands, except per share data)	2024		2023
Sales revenue, net	$	416,847	$	474,672
Cost of goods sold	213,768		259,041
Gross profit	203,079		215,631

Selling, general and administrative expense (“SG&A”)	170,481		167,635

Restructuring charges	1,835		7,355
Operating income	30,763		40,641

Non-operating income, net	100		137
Interest expense	12,543		14,052
Income before income tax	18,320		26,726

Income tax expense	12,116		4,145
Net income	$	6,204	$	22,581




Earnings per share (“EPS”):
Basic	$	0.26	$	0.94
Diluted	0.26		0.94








Weighted average shares used in computing EPS:
Basic	23,524		24,049
Diluted	23,633		24,134

See accompanying notes to condensed consolidated financial statements.

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HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended May 31,
(in thousands)	2024		2023
Net income	$	6,204	$	22,581
Other comprehensive income (loss), net of tax:
Cash flow hedge activity - interest rate swaps	925		(3,092)
Cash flow hedge activity - foreign currency contracts	(227)		(623)
Total other comprehensive income (loss), net of tax	698		(3,715)
Comprehensive income	$	6,902	$	18,866

See accompanying notes to condensed consolidated financial statements.

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HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)


	Common Stock			Additional Paid in Capital		Accumulated Other Comprehensive Income		Retained Earnings		Total Stockholders' Equity
(in thousands, including shares)	Shares	Par Value
Balances at February 28, 2023	23,994	$	2,399	$	317,277	$	4,947	$	1,164,188	$	1,488,811
Net income	—	—		—		—		22,581		22,581

Other comprehensive loss, net of tax	—	—		—		(3,715)		—		(3,715)
Exercise of stock options	5	1		211		—		—		212
Issuance and settlement of restricted stock	120	12		(12)		—		—		—
Issuance of common stock related to stock purchase plan	23	2		2,166		—		—		2,168
Common stock repurchased and retired	(45)	(4)		(4,442)		—		—		(4,446)
Share-based compensation	—	—		9,297		—		—		9,297

Balances at May 31, 2023	24,097	$	2,410	$	324,497	$	1,232	$	1,186,769	$	1,514,908




Balances at February 29, 2024	23,751	$	2,375	$	348,739	$	2,099	$	1,284,229	$	1,637,442
Net income	—	—		—		—		6,204		6,204

Other comprehensive income, net of tax	—	—		—		698		—		698
Exercise of stock options	6	1		351		—		—		352
Issuance and settlement of restricted stock	71	7		(7)		—		—		—
Issuance of common stock related to stock purchase plan	19	2		2,004		—		—		2,006
Common stock repurchased and retired	(1,037)	(104)		(6,720)		—		(96,211)		(103,035)
Share-based compensation	—	—		5,833		—		—		5,833

Balances at May 31, 2024	22,810	$	2,281	$	350,200	$	2,797	$	1,194,222	$	1,549,500

See accompanying notes to condensed consolidated financial statements.

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HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)


	Three Months Ended May 31,
(in thousands)	2024		2023
Cash provided by operating activities:
Net income	$	6,204	$	22,581


Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,836		10,715
Amortization of financing costs	319		308
Non-cash operating lease expense	2,878		2,338
Provision for credit losses	88		3,389
Non-cash share-based compensation	5,833		9,297


Gain on the sale or disposal of property and equipment	(29)		(246)

Deferred income taxes and tax credits	10,445		3,897
Changes in operating capital:
Receivables	64,595		26,733
Inventory	(48,754)		21,572
Prepaid expenses and other current assets	(3,565)		(1,420)
Other assets and liabilities, net	327		(656)
Accounts payable	2,350		36,644
Accrued expenses and other current liabilities	(19,465)		(10,734)
Accrued income taxes	(9,742)		(3,362)
Net cash provided by operating activities	25,320		121,056



Cash used by investing activities:
Capital and intangible asset expenditures	(9,142)		(11,877)

Payments for purchases of U.S. Treasury Bills	(683)		—


Proceeds from maturity of U.S. Treasury Bills	626		—
Proceeds from the sale of property and equipment	38		246
Net cash used by investing activities	(9,161)		(11,631)



Cash used by financing activities:
Proceeds from revolving loans	314,040		70,150
Repayment of revolving loans	(230,090)		(166,150)


Repayment of long-term debt	(1,563)		(1,563)
Payment of financing costs	(222)		—
Proceeds from share issuances under share-based compensation plans	2,358		2,380

Payments for repurchases of common stock	(103,035)		(4,446)
Net cash used by financing activities	(18,512)		(99,629)



Net (decrease) increase in cash and cash equivalents	(2,353)		9,796
Cash and cash equivalents, beginning balance	18,501		29,073
Cash and cash equivalents, ending balance	$	16,148	$	38,869



Supplemental non-cash investing activity:
Capital expenditures included in accounts payable and accrued expenses	$	5,647	$	2,579

See accompanying notes to condensed consolidated financial statements.

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HELEN OF TROY LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

May 31, 2024

Note 1 - Basis of Presentation and Related Information

Corporate Overview

The accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly our consolidated financial position as of May 31, 2024 and February 29, 2024, and the results of our consolidated operations for the interim periods presented. We follow the same accounting policies when preparing quarterly financial data as we use for preparing annual data. These statements should be read in conjunction with the consolidated financial statements and the notes included in our latest annual report on Form 10-K for the fiscal year ended February 29, 2024 (“Form 10-K”), and our other reports on file with the Securities and Exchange Commission (the “SEC”).

When used in these notes, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries, which are all wholly-owned. We refer to our common shares, par value $0.10 per share, as “common stock.” References to “the FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to accounting principles generally accepted in the United States of America (the “U.S.”). References to “ASU” refer to the codification of GAAP in the Accounting Standards Updates issued by the FASB. References to “ASC” refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB.

We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994. We are a leading global consumer products company offering creative products and solutions for our customers through a diversified portfolio of brands. Our portfolio of brands include OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith and Revlon, among others. As of May 31, 2024, we operated two reportable segments: Home & Outdoor and Beauty & Wellness.

Our Home & Outdoor segment offers a broad range of outstanding world-class brands that help consumers enjoy everyday living inside their homes and outdoors. Our innovative products for home activities include food preparation and storage, cooking, cleaning, organization, and beverage service. Our outdoor performance range, on-the-go food storage, and beverageware includes lifestyle hydration products, coolers and food storage solutions, backpacks, and travel gear. The Beauty & Wellness segment provides consumers with a broad range of outstanding world-class brands for beauty and wellness. In Beauty, we deliver innovation through products such as hair styling appliances, grooming tools, and liquid and aerosol personal care products that help consumers look and feel more beautiful. In Wellness, we are there when you need us most with highly regarded humidifiers, thermometers, water and air purifiers, heaters, and fans.

Our business is seasonal due to different calendar events, holidays and seasonal weather and illness patterns. Our fiscal reporting period ends on the last day in February. Historically, our highest sales volume and operating income occur in our third fiscal quarter ending November 30th. We purchase our products from unaffiliated manufacturers, most of which are located in China, Mexico, Vietnam and the U.S.

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Principles of Consolidation

The accompanying condensed consolidated financial statements are prepared in accordance with GAAP and include all of our subsidiaries. Our condensed consolidated financial statements are prepared in U.S. Dollars. All intercompany balances and transactions are eliminated in consolidation.

The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates.

Note 2 - New Accounting Pronouncements

There have been no changes in the information provided in our Form 10-K.

Note 3 - Accrued Expenses and Other Current Liabilities

A summary of accrued expenses and other current liabilities was as follows:


(in thousands)	May 31, 2024		February 29, 2024
Accrued compensation, benefits and payroll taxes	$	17,620	$	36,572
Accrued sales discounts and allowances	40,485		37,851
Accrued sales returns	19,335		21,282
Accrued advertising	27,179		29,212
Other	58,942		56,474
Total accrued expenses and other current liabilities	$	163,561	$	181,391

Note 4 - Share-Based Compensation Plans

As part of our compensation structure, we grant share-based compensation awards to certain employees and non-employee members of our Board of Directors during the fiscal year. These awards may be subject to attainment of certain service conditions, performance conditions and/or market conditions. During the first quarter of fiscal 2025, we granted 94,900 service condition awards (“Service Condition Awards”) with a weighted average grant date fair value of $124.37. Additionally, we granted 157,797 performance-based awards during the first quarter of fiscal 2025, of which 94,586 contained performance conditions (“Performance Condition Awards”) and 63,211 contained market conditions (“Market Condition Awards”), with weighted average grant date fair values of $124.37 and $91.19, respectively. Refer to our Form 10-K for further information on the Company's share-based compensation plans.

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We recorded share-based compensation expense in SG&A as follows:


	Three Months Ended May 31,
(in thousands)	2024		2023

Directors stock compensation	$	196	$	197
Service Condition Awards	2,568		3,320
Performance Condition Awards	1,047		2,023
Market Condition Awards	1,395		3,147
Employee stock purchase plan	627		610
Share-based compensation expense	5,833		9,297
Less: income tax benefits	(264)		(641)
Share-based compensation expense, net of income tax benefits	$	5,569	$	8,656

Unrecognized Share-Based Compensation Expense

As of May 31, 2024, our total unrecognized share-based compensation for all awards was $33.5 million, which will be recognized over a weighted average amortization period of 2.5 years. The total unrecognized share-based compensation reflects an estimate of target achievement for Performance Condition Awards granted during fiscal 2025 and fiscal 2024 and an estimate of zero percent of target achievement for Performance Condition Awards granted during fiscal 2023.

Note 5 - Repurchases of Common Stock

In August 2021, our Board of Directors authorized the repurchase of up to $500 million of our outstanding common stock. The authorization became effective August 25, 2021, for a period of three years, and replaced our former repurchase authorization. As of May 31, 2024, our repurchase authorization allowed for the purchase of $245.4 million of common stock.

Our current equity-based compensation plans include provisions that allow for the “net exercise” of share-settled awards by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the option or other share-based award holders are settled by having the holder tender back to us a number of shares at fair value equal to the amounts due. Net exercises are treated as purchases and retirements of shares.

The following table summarizes our share repurchase activity for the periods shown:


	Three Months Ended May 31,
(in thousands, except share and per share data)	2024		2023
Common stock repurchased on the open market:
Number of shares	1,011,243		—
Aggregate value of shares	$	100,019	$	—
Average price per share	$	98.91	$	—

Common stock received in connection with share-based compensation:
Number of shares	25,372		44,632
Aggregate value of shares	$	3,016	$	4,446
Average price per share	$	118.85	$	99.61

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Note 6 - Restructuring Plan

During the fourth quarter of fiscal 2023, we made changes to the structure of our organization. These changes resulted in our previous Health & Wellness and Beauty operating segments being combined into a single reportable segment, the creation of a North America Regional Market Organization (“RMO”) responsible for sales and go-to-market strategies for all categories and channels in the U.S. and Canada, and further centralization of certain functions under shared services, particularly in operations and finance to better support our business segments and RMOs. This new structure reduced the size of our global workforce by approximately 10%. We believe that these changes better focus business segment resources on brand development, consumer-centric innovation and marketing, the RMOs on sales and go to market strategies, and shared services on their respective areas of expertise while also creating a more efficient and effective organizational structure.

During the second quarter of fiscal 2024, we announced plans to geographically consolidate the U.S. Beauty business, currently located in El Paso, Texas, and Irvine, California, and co-locate it with our Wellness business in the Boston, Massachusetts area. This geographic consolidation and relocation is the next step in our initiative to streamline and simplify the organization and is expected to be completed during fiscal 2025. We expect these changes will enable a greater opportunity to capture synergies and enhance collaboration and innovation within the Beauty & Wellness segment.

As previously disclosed, we continue to have the following expectations regarding Project Pegasus charges:

•Total one-time pre-tax restructuring charges of approximately $50 million to $55 million over the duration of the plan, expected to be completed during fiscal 2025.

•Pre-tax restructuring charges to be comprised of approximately $15 million to $19 million of severance and employee related costs, $28 million of professional fees, $3 million to $4 million of contract termination costs, and $4 million of other exit and disposal costs.

•All of our operating segments and shared services will be impacted by the plan and pre-tax restructuring charges include approximately $16 million to $17 million in Home & Outdoor and $34 million to $38 million in Beauty & Wellness.

•Pre-tax restructuring charges represent primarily cash expenditures, which are expected to be substantially paid by the end of fiscal 2025.

We also continue to have the following expectations regarding Project Pegasus savings:

•Targeted annualized pre-tax operating profit improvements of approximately $75 million to $85 million, which began in fiscal 2024 and we expect to be substantially achieved by the end of fiscal 2027.

•Estimated cadence of the recognition of the savings will be approximately 25% in fiscal 2024, which was achieved, approximately 35% in fiscal 2025, approximately 25% in fiscal 2026 and approximately 15% in fiscal 2027.

•Total profit improvements to be realized approximately 60% through reduced cost of goods sold and 40% through lower SG&A.

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The following tables summarize restructuring charges recorded as a result of Project Pegasus for the periods presented:


	Three Months Ended May 31, 2024						Total Incurred Since Inception
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Severance and employee related costs	$	440	$	1,125	$	1,565	$	16,841
Professional fees	—		270		270		27,147
Contract termination	—		—		—		1,331
Other	—		—		—		2,590
Total restructuring charges	$	440	$	1,395	$	1,835	$	47,909


	Three Months Ended May 31, 2023
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Severance and employee related costs	$	484	$	408	$	892
Professional fees	2,269		3,357		5,626
Contract termination	—		688		688
Other	37		112		149
Total restructuring charges	$	2,790	$	4,565	$	7,355

The tables below present a rollforward of our accruals related to Project Pegasus, which are included in accounts payable and accrued expenses and other current liabilities:


(in thousands)	Balance at February 29, 2024		Charges		Payments		Balance at May 31, 2024
Severance and employee related costs	$	4,493	$	1,565	$	(2,975)	$	3,083
Professional fees	272		270		(24)		518
Contract termination	—		—		—		—
Other	—		—		—		—
Total	$	4,765	$	1,835	$	(2,999)	$	3,601


(in thousands)	Balance at February 28, 2023		Charges		Payments		Balance at May 31, 2023
Severance and employee related costs	$	3,173	$	892	$	(2,316)	$	1,749
Professional fees	3,201		5,626		(6,026)		2,801
Contract termination	160		688		(848)		—
Other	34		149		(183)		—
Total	$	6,568	$	7,355	$	(9,373)	$	4,550

Note 7 - Commitments and Contingencies

Legal Matters

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On December 23, 2021, Brita LP filed a complaint against Kaz USA, Inc. and Helen of Troy Limited in the United States District Court for the Western District of Texas (the “Patent Litigation”), alleging patent infringement by the Company relating to its PUR gravity-fed water filtration systems. In the Patent Litigation, Brita LP seeks monetary damages and injunctive relief relating to the alleged infringement. Brita LP simultaneously filed a complaint with the United States International Trade Commission (“ITC”) against Kaz USA, Inc., Helen of Troy Limited and five other unrelated companies that sell water filtration systems (the “ITC Action”). The complaint in the ITC Action also alleged patent infringement by the Company with respect to a limited set of PUR gravity-fed water filtration systems. In the ITC Action, Brita LP requested the ITC to initiate an unfair import investigation relating to such filtration systems. This action sought injunctive relief to prevent entry of certain accused PUR products (and certain other products) into the U.S. and cessation of marketing and sales of existing inventory that is already in the U.S. On January 25, 2022, the ITC instituted the investigation requested by the ITC Action. Discovery closed in the ITC Action in May 2022, and approximately half of the originally identified PUR gravity-fed water filters were removed from the case and are no longer included in the ITC Action. In August 2022, the parties participated in the evidentiary hearing, with additional supplemental hearings in October 2022. On February 28, 2023, the ITC issued an Initial Determination in the ITC Action, tentatively ruling against the Company and the other unrelated respondents. The ITC has a guaranteed review process, and thus all respondents, including the Company, filed a petition with the ITC for a full review of the Initial Determination. On September 19, 2023, the ITC issued its Final Determination in the Company’s favor. The ITC determined there was no violation by the Company and terminated the investigation. Brita LP is appealing the ITC's decision to the Federal Circuit (“CAFC Appeal”) and filed its Notice of Appeal on October 24, 2023. The Company intervened in the CAFC Appeal, but as of the filing date of this Form 10-Q, no hearings have been scheduled. The Patent Litigation remains stayed for the time being. We cannot predict the outcome of these legal proceedings, the amount or range of any potential loss, when the proceedings will be resolved, or customer acceptance of any replacement water filter. Litigation is inherently unpredictable, and the resolution or disposition of these proceedings could, if adversely determined, have a material and adverse impact on our financial position and results of operations.

Regulatory Matters

During fiscal 2022 and 2023, we were in discussions with the U.S. Environmental Protection Agency (the “EPA”) regarding the compliance of packaging claims on certain of our products in the air and water filtration categories and a limited subset of humidifier products within the Beauty & Wellness segment that are sold in the U.S. The EPA did not raise any product quality, safety or performance issues. As a result of these packaging compliance discussions, we voluntarily implemented a temporary stop shipment action on the impacted products as we worked with the EPA towards an expedient resolution. We resumed normalized levels of shipping of the affected inventory during fiscal 2022 and we completed the repackaging and relabeling of our existing inventory of impacted products during fiscal 2023. Additionally, as a result of continuing dialogue with the EPA, we executed further repackaging and relabeling plans on certain additional humidifier products and certain additional air filtration products, which were also completed during fiscal 2023. Ongoing settlement discussions with the EPA related to this matter may result in the imposition of fines or penalties in the future. Such potential fines or penalties cannot be estimated. For additional information refer to Part I, Item 2., “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” including “EPA Compliance Costs”.

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Note 8 - Long-Term Debt

A summary of our long-term debt follows:


(in thousands)	May 31, 2024		February 29, 2024
Credit Agreement (1):
Revolving loans	$	505,900	$	421,950
Term loans	248,437		250,000
Total borrowings under Credit Agreement	754,337		671,950
Unamortized prepaid financing fees	(5,960)		(6,279)
Total long-term debt	748,377		665,671
Less: current maturities of long-term debt	(7,031)		(6,250)
Long-term debt, excluding current maturities	$	741,346	$	659,421

(1)The weighted average interest rates on borrowings outstanding under the Credit Agreement (defined below) inclusive of the impact of our interest rate swaps as of May 31, 2024 and February 29, 2024 were 6.4% and 6.0%, respectively.

Capitalized Interest

During the three month period ended May 31, 2024, we incurred interest costs totaling $12.5 million, of which none was capitalized, compared to $14.9 million for the same period last year, of which we capitalized $0.9 million as part of property and equipment in connection with the construction of a new distribution facility.

Credit Agreement

We have a credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and other lenders that provides for aggregate commitments of $1.5 billion, which are available through (i) a $1.0 billion revolving credit facility, which includes a $50 million sublimit for the issuance of letters of credit, (ii) a $250 million term loan facility, and (iii) a committed $250 million delayed draw term loan facility, which may be borrowed in multiple drawdowns until August 15, 2025. Proceeds can be used for working capital and other general corporate purposes, including funding permitted acquisitions. At the closing date, February 15, 2024, we borrowed $457.5 million under the revolving credit facility and $250.0 million under the term loan facility and utilized the proceeds to repay all debt outstanding under our prior credit agreement. The Credit Agreement matures on February 15, 2029. The Credit Agreement includes an accordion feature, which permits the Company to request to increase its borrowing capacity by an additional $300 million plus an unlimited amount when the Leverage Ratio (as defined in the Credit Agreement) on a pro-forma basis is less than 3.25 to 1.00. The term loans are payable at the end of each fiscal quarter in equal installments of 0.625% through February 28, 2025, 0.9375% through February 28, 2026, and 1.25% thereafter of the original principal balance of the term loans, which began in the first quarter of fiscal 2025, with the remaining balance due at the maturity date. Borrowings under the Credit Agreement bear floating interest at either the Base Rate or Term SOFR (as defined in the Credit Agreement), plus a margin based on the Net Leverage Ratio (as defined in the Credit Agreement) of 0% to 1.125% and 1.0% to 2.125% for Base Rate and Term SOFR borrowings, respectively.

The floating interest rates on our borrowings under the Credit Agreement are hedged with interest rate swaps to effectively fix interest rates on $300 million and $500 million of the outstanding principal balance under the revolving loans as of May 31, 2024 and February 29, 2024, respectively. See Notes 9, 10, and 11 for additional information regarding our interest rate swaps.

As of May 31, 2024, the balance of outstanding letters of credit was $15.6 million and the amount available for revolving loans under the Credit Agreement was $478.5 million. Covenants in the Credit Agreement limit the amount of total indebtedness we can incur. As of May 31, 2024, these covenants

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effectively limited our ability to incur more than $336.9 million of additional debt from all sources, including the Credit Agreement, or $478.5 million in the event a qualified acquisition is consummated.

Debt Covenants

As of May 31, 2024, we were in compliance with all covenants as defined under the terms of the Credit Agreement.

Note 9 - Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques under the accounting guidance related to fair value measurements are based on observable and unobservable inputs. These inputs are classified into the following hierarchy:

Level 1:Quoted prices for identical assets or liabilities in active markets;

Level 2:Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and

Level 3:Unobservable inputs that reflect the reporting entity’s own assumptions.

All of our financial assets and liabilities, except for our investments in U.S. Treasury Bills, are classified as Level 2 because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable. Our investments in U.S. Treasury Bills are classified as Level 1 because their value is based on quoted prices in active markets for identical assets.

The following table presents the fair value of our financial assets and liabilities:


	Fair Value
(in thousands)	May 31, 2024		February 29, 2024
Assets:
Cash equivalents (money market accounts)	$	3,661	$	462
U.S. Treasury Bills	9,016		8,948
Interest rate swaps	3,712		2,504
Foreign currency derivatives	432		592
Total assets	$	16,821	$	12,506

Liabilities:


Foreign currency derivatives	505		386
Total liabilities	$	505	$	386

All of our financial assets and liabilities, except for our investments in U.S. Treasury Bills, are measured and recorded at fair value on a recurring basis. Our investments in U.S. Treasury Bills are recorded at amortized cost. As of both May 31, 2024 and February 29, 2024, the current and non-current carrying amounts of our U.S. Treasury Bills were $2.5 million and $6.6 million, respectively, and were included

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within Prepaid expenses and other current assets and Other assets, respectively, in our condensed consolidated balance sheets.

The carrying amounts of cash, accounts payable, accrued expenses and other current liabilities and income taxes payable approximate fair value because of the short maturity of these items. The carrying amounts of receivables approximate fair value due to the effect of the related allowance for credit losses. The carrying amount of our floating rate long-term debt approximates its fair value.

Our investments in U.S. Treasury Bills are classified as held-to-maturity because we have the positive intent and ability to hold the securities to maturity. We invest in U.S. Treasury Bills with maturities ranging from less than one to five years. Gross unrealized losses were $0.1 million for the three months ended May 31, 2024. During the three month period ended May 31, 2024, we recognized an immaterial amount of interest income on these investments, which is included in “Non-operating income, net” in our condensed consolidated statement of income.

We use foreign currency forward contracts and interest rate swaps to manage our exposure to changes in foreign currency exchange rates and interest rates, respectively. All of our derivative assets and liabilities are recorded at fair value. See Notes 10 and 11 for more information on our derivatives.

Note 10 - Financial Instruments and Risk Management

Foreign Currency Risk

The U.S. Dollar is the functional currency for the Company and all of its subsidiaries and is also the reporting currency for the Company. By operating internationally, we are subject to foreign currency risk from transactions denominated in currencies other than the U.S. Dollar (“foreign currencies”). Such transactions include sales and operating expenses. As a result of such transactions, portions of our cash, accounts receivable and accounts payable are denominated in foreign currencies. Approximately 16% and 15% of our net sales revenue was denominated in foreign currencies during the three month periods ended May 31, 2024 and 2023, respectively. These sales were primarily denominated in Euros, British Pounds and Canadian Dollars. We make most of our inventory purchases from manufacturers in Asia and primarily use the U.S. Dollar for such purchases.

In our condensed consolidated statements of income, foreign currency exchange rate gains and losses resulting from the remeasurement of foreign income tax receivables and payables, and deferred income tax assets and liabilities are recognized in income tax expense, and all other foreign currency exchange rate gains and losses are recognized in SG&A. During the three month periods ended May 31, 2024 and 2023, we recorded foreign currency exchange rate net losses of $0.1 million and net gains of $0.2 million, respectively, in income tax expense. During the three month periods ended May 31, 2024 and 2023, we recorded foreign currency exchange rate net gains of an immaterial amount and $0.4 million, respectively, in SG&A. We mitigate certain foreign currency exchange rate risk by using forward contracts to protect against the foreign currency exchange rate risk inherent in our transactions denominated in foreign currencies. We do not enter into any derivatives or similar instruments for trading or other speculative purposes. Certain of our forward contracts are designated as cash flow hedges (“foreign currency contracts”) and are recorded on the balance sheet at fair value with changes in fair value recorded in Other Comprehensive Income (Loss) (“OCI”) until the hedge transaction is settled, at which point amounts are reclassified from Accumulated Other Comprehensive Income (Loss) (“AOCI”) to our condensed consolidated statements of income. Foreign currency derivatives for which we have not elected hedge accounting consist of certain forward contracts, and any changes in the fair value of these derivatives are recorded in our condensed consolidated statements of income. These undesignated derivatives are used to hedge monetary net asset and liability positions. Cash flows from our foreign currency derivatives are classified as cash flows from operating activities in our condensed consolidated

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statements of cash flows, which is consistent with the classification of the cash flows from the underlying hedged item. We evaluate our derivatives designated as cash flow hedges each quarter to assess hedge effectiveness.

Interest Rate Risk

Interest on our outstanding debt as of May 31, 2024 and February 29, 2024 is based on floating interest rates. If short-term interest rates increase, we will incur higher interest expense on any future outstanding balances of floating rate debt. Floating interest rates are hedged with interest rate swaps to effectively fix interest rates on a portion of our outstanding principal balance under the Credit Agreement, which totaled $754.3 million and $672.0 million as of May 31, 2024 and February 29, 2024, respectively. As of May 31, 2024 and February 29, 2024, $300.0 million and $500.0 million of the outstanding principal balance under the Credit Agreement, respectively, was hedged with interest rate swaps to fix the interest rate we pay. Our interest rate swaps are designated as cash flow hedges and are recorded on the balance sheet at fair value with changes in fair value recorded in OCI until the hedge transaction is settled, at which point amounts are reclassified from AOCI to our condensed consolidated statements of income. Cash flows from our interest rate swaps are classified as cash flows from operating activities in our condensed consolidated statements of cash flows, which is consistent with the classification of the cash flows from the underlying hedged item. We evaluate our derivatives designated as cash flow hedges each quarter to assess hedge effectiveness.

The following tables summarize the fair values of our derivative instruments as of the end of the periods presented:


(in thousands)	May 31, 2024
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities, Non- Current

Forward contracts - sell Euro	Cash flow	2/2025	€	29,000	$	249	$	—	$	87	$	—
Forward contracts - sell Canadian Dollars	Cash flow	2/2025	$	18,350	153		—		34		—
Forward contracts - sell Pounds	Cash flow	11/2025	£	21,750	16		—		375		2



Forward contracts - sell Norwegian Kroner	Cash flow	2/2025	kr	15,000	—		—		1		—
Interest rate swaps	Cash flow	2/2026	$	300,000	2,127		1,585		—		—
Subtotal					2,545		1,585		497		2

Derivatives not designated under hedge accounting


Forward contracts - sell Euro	(1)	6/2024	€	1,000	—		—		6		—
Forward contracts - buy Pounds	(1)	6/2024	£	700	14		—		—		—
Subtotal					14		—		6		—
Total fair value					$	2,559	$	1,585	$	503	$	2

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(in thousands)	February 29, 2024
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities Non- Current

Forward contracts - sell Euro	Cash flow	2/2025	€	36,500	$	377	$	—	$	90	$	—
Forward contracts - sell Canadian Dollars	Cash flow	2/2025	$	20,750	151		—		57		—

Forward contracts - sell Pounds	Cash flow	2/2025	£	20,250	59		—		234		—


Forward contracts - sell Norwegian Kroner	Cash flow	8/2024	kr	5,000	5		—		—		—
Interest rate swaps	Cash flow	2/2026	$	500,000	1,314		1,190		—		—
Subtotal					1,906		1,190		381		—

Derivatives not designated under hedge accounting
Forward contracts - sell Euro	(1)	3/2024	€	430	—		—		3		—
Forward contracts - sell Pounds	(1)	3/2024	£	735	—		—		2		—
Subtotal					—		—		5		—
Total fair value					$	1,906	$	1,190	$	386	$	—

(1)These forward contracts, for which we have not elected hedge accounting, hedge monetary net asset and liability positions for the notional amounts reported, creating an economic hedge against currency movements.

The pre-tax effects of derivative instruments designated as cash flow hedges were as follows for the periods presented:


	Three Months Ended May 31,
	Gain (Loss) Recognized in AOCI				Gain (Loss) Reclassified from AOCI into Income
(in thousands)	2024		2023		Location	2024		2023
Foreign currency contracts - cash flow hedges	$	(108)	$	(467)	Sales revenue, net	$	184	$	338
Interest rate swaps - cash flow hedges	2,292		(2,634)		Interest expense	1,084		1,407


Total	$	2,184	$	(3,101)		$	1,268	$	1,745

The pre-tax effects of derivative instruments not designated under hedge accounting were as follows for the periods presented:


	Gain (Loss) Recognized in Income
		Three Months Ended May 31,
(in thousands)	Location	2024		2023
Forward contracts	SG&A	$	22	$	(24)


Total		$	22	$	(24)

We expect a net gain of $2.0 million associated with foreign currency contracts and interest rate swaps currently recorded in AOCI to be reclassified into income over the next twelve months. The amount ultimately realized, however, will differ as exchange rates and interest rates change and the underlying contracts settle. See Notes 9 and 11 for more information.

Counterparty Credit Risk

Financial instruments, including foreign currency contracts, forward contracts, and interest rate swaps, expose us to counterparty credit risk for non-performance. We manage our exposure to counterparty credit risk by only dealing with counterparties who are substantial international financial institutions with

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significant experience using such derivative instruments. We believe that the risk of incurring credit losses is remote.

Note 11 - Accumulated Other Comprehensive Income (Loss)

The changes in AOCI by component and related tax effects for the periods presented were as follows:


(in thousands)	Interest Rate Swaps		Foreign Currency Contracts		Total
Balance at February 28, 2023	$	4,394	$	553	$	4,947
Other comprehensive loss before reclassification	(2,634)		(467)		(3,101)
Amounts reclassified out of AOCI	(1,407)		(338)		(1,745)
Tax effects	949		182		1,131
Other comprehensive loss	(3,092)		(623)		(3,715)
Balance at May 31, 2023	$	1,302	$	(70)	$	1,232

Balance at February 29, 2024	$	1,917	$	182	$	2,099
Other comprehensive income (loss) before reclassification	2,292		(108)		2,184
Amounts reclassified out of AOCI	(1,084)		(184)		(1,268)
Tax effects	(283)		65		(218)
Other comprehensive income (loss)	925		(227)		698
Balance at May 31, 2024	$	2,842	$	(45)	$	2,797

See Notes 9 and 10 for additional information regarding our cash flow hedges.

Note 12 - Segment and Geographic Information

The following tables summarize segment information for the periods presented:


	Three Months Ended May 31, 2024
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Sales revenue, net	$	198,459	$	218,388	$	416,847
Restructuring charges	440		1,395		1,835
Operating income	15,850		14,913		30,763
Capital and intangible asset expenditures	5,745		3,397		9,142
Depreciation and amortization	6,647		7,189		13,836


	Three Months Ended May 31, 2023
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Sales revenue, net	$	217,144	$	257,528	$	474,672
Restructuring charges	2,790		4,565		7,355

Operating income	22,116		18,525		40,641
Capital and intangible asset expenditures	10,960		917		11,877
Depreciation and amortization	4,402		6,313		10,715

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The following table presents net sales revenue by geographic region, in U.S. Dollars:


	Three Months Ended May 31,
(in thousands)	2024				2023
Domestic sales revenue, net (1)	$	300,680	72.1	%	$	359,559	75.7	%
International sales revenue, net	116,167		27.9	%	115,113		24.3	%
Total sales revenue, net	$	416,847	100.0	%	$	474,672	100.0	%

(1)Domestic net sales revenue includes net sales revenue from the U.S. and Canada.

Note 13 - Income Taxes

We reorganized the Company in Bermuda in 1994 and many of our foreign subsidiaries are not directly or indirectly owned by a U.S. parent. As such, a large portion of our foreign income is not subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by foreign subsidiaries, resulting in proportionally higher earnings in jurisdictions with lower statutory tax rates, which decreases our overall effective tax rate. The taxable income earned in each jurisdiction, whether U.S. or foreign, is determined by the subsidiary's operating results and transfer pricing and tax regulations in the related jurisdictions.

For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions and other items.

The Organisation for Economic Co-operation and Development has introduced a framework to implement a global minimum corporate income tax of 15%, referred to as “Pillar Two.” Many aspects of Pillar Two are effective for tax years beginning after January 1, 2024, with certain remaining aspects to be effective for tax years beginning January 1, 2025 or later. Certain countries have adopted legislation to implement Pillar Two, and other countries are in the process of introducing legislation to implement Pillar Two. We will continue to assess the impact of Pillar Two and monitor developments in legislation, regulation, and interpretive guidance.

In response to Pillar Two, on May 24, 2024, Barbados enacted a domestic corporate income tax rate of 9%, effective beginning with our fiscal year 2025. As a result, we incorporated this corporate income tax into our estimated annual effective tax rate increasing our income tax provision during the first quarter of fiscal 2025. In addition, we revalued our existing deferred tax liabilities subject to the Barbados legislation, which resulted in a discrete tax charge of $6.0 million during the first quarter of fiscal 2025. Additionally, Barbados enacted a domestic minimum top-up tax (“DMTT”) of 15% which applies to Barbados businesses that are part of multinational enterprise groups with annual revenue of €750 million or more and is effective beginning with our fiscal year 2026. We will continue to monitor and evaluate impacts as further regulatory guidance becomes available.

For the three months ended May 31, 2024, income tax expense as a percentage of income before income tax was 66.1% compared to 15.5% for the same period last year. The year-over-year increase in the effective tax rate is primarily due to the Barbados tax legislation enacted during the first quarter of fiscal 2025, which resulted in a discrete tax charge of $6.0 million to revalue deferred tax liabilities and an increase in our income tax expense due to the change to our estimated annual effective tax rate arising from the legislation, partially offset by shifts in the mix of income in our various tax jurisdictions.

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Note 14 - Earnings Per Share

We compute basic earnings per share using the weighted average number of shares of common stock outstanding during the period. We compute diluted earnings per share using the weighted average number of shares of common stock outstanding plus the effect of dilutive securities. Dilutive securities at any given point in time may consist of outstanding options to purchase common stock and issued and contingently issuable unvested restricted stock units, performance stock units, restricted stock awards and performance restricted stock awards and other stock-based awards. Anti-dilutive securities are not included in the computation of diluted earnings per share under the treasury stock method. See Note 4 to these condensed consolidated financial statements for more information regarding stock-based awards.

The following table presents our weighted average basic and diluted shares outstanding for the periods shown:


	Three Months Ended May 31,
(in thousands)	2024	2023
Weighted average shares outstanding, basic	23,524	24,049
Incremental shares from share-based compensation arrangements	109	85
Weighted average shares outstanding, diluted	23,633	24,134



Anti-dilutive securities	125	156

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with our condensed consolidated financial statements included under Part I, Item 1., “Financial Statements.” The various sections of this MD&A contain a number of forward-looking statements, all of which are based on our current expectations. Actual results may differ materially due to a number of factors, including those discussed in the section entitled “Information Regarding Forward-Looking Statements” following this MD&A, and in Part I, Item 3., “Quantitative and Qualitative Disclosures About Market Risk” in this report, as well as in Part I, Item IA., “Risk Factors” in the Company’s most recent annual report on Form 10-K for the fiscal year ended February 29, 2024 (“Form 10-K”) and its other filings with the Securities and Exchange Commission (the “SEC”). When used in this MD&A, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries.

This MD&A, including the tables under the headings “Operating Income, Operating Margin, Adjusted Operating Income (non-GAAP), and Adjusted Operating Margin (non-GAAP) by Segment” and “Net Income, Diluted EPS, Adjusted Income (non-GAAP), and Adjusted Diluted EPS (non-GAAP),” reports operating income, operating margin, net income and diluted earnings per share (“EPS”) without the impact of a discrete tax charge to revalue existing deferred tax liabilities due to Barbados enacting domestic corporate income tax legislation (“Barbados tax reform”), a charge for uncollectible receivables due to the bankruptcy of Bed, Bath & Beyond (“Bed, Bath & Beyond bankruptcy”), restructuring charges, amortization of intangible assets, and non-cash share-based compensation for the periods presented, as applicable. These measures may be considered non-GAAP financial measures as defined by SEC Regulation G, Rule 100. The tables reconcile these measures to their corresponding GAAP-based financial measures presented in our condensed consolidated statements of income. We believe that adjusted operating income, adjusted operating margin, adjusted income, and adjusted diluted EPS provide useful information to management and investors regarding financial and business trends relating to our financial condition and results of operations. We believe that these non-GAAP financial measures, in combination with our financial results calculated in accordance with GAAP, provide investors with additional perspective regarding the impact of such charges and benefits on applicable income, margin and earnings per share measures. We also believe that these non-GAAP measures facilitate a more direct comparison of our performance to our competitors. We further believe that including the excluded charges and benefits would not accurately reflect the underlying performance of our operations for the period in which the charges and benefits were incurred and reflected in our GAAP financial results. 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 our activities. Our adjusted operating income, adjusted operating margin, adjusted income, and adjusted diluted EPS are not prepared in accordance with GAAP, are not an alternative to GAAP financial measures and may be calculated differently than non-GAAP financial measures disclosed by other companies. Accordingly, undue reliance should not be placed on non-GAAP financial measures. These non-GAAP financial measures are discussed further and reconciled to their applicable GAAP-based financial measures contained in this MD&A beginning on page 32.

There were no material changes to the key financial measures discussed in our Form 10-K.

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Overview

We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994. We are a leading global consumer products company offering creative products and solutions for our customers through a diversified portfolio of brands. Our portfolio of brands includes OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith and Revlon, among others. We have built leading market positions through new product innovation, product quality and competitive pricing. As of May 31, 2024, we operated two reportable segments: Home & Outdoor and Beauty & Wellness.

During fiscal 2023, we initiated a global restructuring plan intended to expand operating margins through initiatives designed to improve efficiency and effectiveness and reduce costs (referred to as “Project Pegasus”). Project Pegasus includes initiatives to further optimize our brand portfolio, streamline and simplify the organization, accelerate and amplify cost of goods savings projects, enhance the efficiency of our supply chain network, optimize our indirect spending and improve our cash flow and working capital, as well as other activities. We anticipate these initiatives will create operating efficiencies, as well as provide a platform to fund future growth investments. During the three month periods ended May 31, 2024 and 2023, we incurred $1.8 million and $7.4 million, respectively, of pre-tax restructuring costs in connection with Project Pegasus, which were recorded as “Restructuring charges” in the condensed consolidated statements of income. See further discussion below within “Significant Trends Impacting the Business” under “Project Pegasus” and Note 6 to the accompanying condensed consolidated financial statements.

Fiscal 2024 concluded Phase II of our transformation strategy, which produced net sales and organic net sales growth and gross profit margin expansion. We expanded our portfolio of leading brands and international footprint with the acquisitions of Drybar, Osprey and Curlsmith. We completed the divestiture of our personal care business and extended our Revlon trademark license for a period of up to 100 years. We strategically and effectively deployed capital to construct our new distribution facility in Gallaway, Tennessee, repurchased shares of our common stock, and repaid amounts outstanding under our long-term debt agreement. We began publishing an annual environmental, social and governance (“ESG”) Report, which summarizes our ESG strategy and performance, providing further transparency into our ESG efforts. During Phase II, we also initiated Project Pegasus, which included the creation of a North America Regional Market Organization (“RMO”) responsible for sales and go-to-market strategies for all categories and channels in the United States of America (“U.S.”) and Canada, and further centralization of certain functions under shared services, particularly in operations and finance to better support our business segments and RMOs.

Fiscal 2025 begins our Elevate for Growth Strategy, which provides our strategic roadmap through fiscal 2030. The long-term objectives of Elevate for Growth include continued organic sales growth, further margin expansion, and accretive capital deployment through strategic acquisitions, share repurchases and capital structure management. The Elevate for Growth Strategy includes an enhanced portfolio management strategy to invest in our brands and grow internationally based upon defined criteria with an emphasis on brand building, new product introductions and expanded distribution. We are continuing to execute our initiatives under Project Pegasus, which we expect to generate incremental fuel to invest in our brand portfolio and new capabilities. We intend to further leverage our operational scale and assets, including our new state-of-the-art distribution center, improved go-to-market structure with our North America RMO, and our expanded shared services capabilities. We also plan to complete the geographic consolidation of our Beauty & Wellness businesses, create a centralized marketing organization that embraces next-level data analytics and consumer insight capabilities, and further integrate our supply chain and finance functions within our shared services. Additionally, we are committed to fostering a winning culture and continuing our ESG and diversity, equity, inclusion and belonging (“DEI&B”) efforts to support our Elevate for Growth Strategy.

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Significant Trends Impacting the Business

Project Pegasus

During fiscal 2023, we initiated Project Pegasus, a global restructuring plan intended to expand operating margins through initiatives designed to improve efficiency and effectiveness and reduce costs. Project Pegasus includes initiatives to further optimize our brand portfolio, streamline and simplify the organization, accelerate and amplify cost of goods savings projects, enhance the efficiency of our supply chain network, optimize our indirect spending and improve our cash flow and working capital, as well as other activities. We anticipate these initiatives will create operating efficiencies, as well as provide a platform to fund future growth investments. During the fourth quarter of fiscal 2023, we made changes to the structure of our organization. These changes resulted in our previous Health & Wellness and Beauty operating segments being combined into a single reportable segment, the creation of a North America Regional Market Organization (“RMO”) responsible for sales and go-to-market strategies for all categories and channels in the U.S. and Canada, and further centralization of certain functions under shared services, particularly in operations and finance to better support our business segments and RMOs. This new structure reduced the size of our global workforce by approximately 10%. We believe that these changes better focus business segment resources on brand development, consumer-centric innovation and marketing, the RMOs on sales and go to market strategies, and shared services on their respective areas of expertise while also creating a more efficient and effective organizational structure.

As previously disclosed, we continue to have the following expectations regarding Project Pegasus charges:

•Total one-time pre-tax restructuring charges of approximately $50 million to $55 million over the duration of the plan, expected to be completed during fiscal 2025.

•Pre-tax restructuring charges represent primarily cash expenditures, which are expected to be substantially paid by the end of fiscal 2025.

We also continue to have the following expectations regarding Project Pegasus savings:

•Total profit improvements to be realized approximately 60% through reduced cost of goods sold and 40% through lower SG&A.

In addition, we implemented plans to reduce inventory levels, increase inventory turns, and improve cash flow and working capital during fiscal 2023. Improvements related to these initiatives began in the

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second half of fiscal 2023, and continued during fiscal 2024, enabling us to repay amounts outstanding under our long-term debt agreement and reduce our interest expense during fiscal 2024. During the first quarter of fiscal 2024, our gross margin was favorably impacted by our SKU rationalization efforts in Beauty & Wellness. In addition, during the first quarter of fiscal 2025, our gross margin and operating margins were favorably impacted by lower commodity and product costs driven by our cost of goods savings projects. Expectations regarding our Project Pegasus initiatives and our ability to realize targeted savings, including expectations concerning costs and savings, are based on management’s estimates available at the time and are subject to a number of assumptions that could materially impact our estimates.

During the three month periods ended May 31, 2024 and 2023, we incurred $1.8 million and $7.4 million, respectively, of pre-tax restructuring costs in connection with Project Pegasus, which were recorded as “Restructuring charges” in the condensed consolidated statements of income. We made total cash restructuring payments of $3.0 million and $9.4 million during the three month periods ended May 31, 2024 and 2023, respectively, and had a remaining liability of $3.6 million as of May 31, 2024. See Note 6 to the accompanying condensed consolidated financial statements for additional information.

Water Filtration Patent Litigation

On December 23, 2021, Brita LP filed a complaint against Kaz USA, Inc. and Helen of Troy Limited in the United States District Court for the Western District of Texas (the “Patent Litigation”), alleging patent infringement by the Company relating to its PUR gravity-fed water filtration systems. Brita LP simultaneously filed a complaint with the United States International Trade Commission (“ITC”) against Kaz USA, Inc., Helen of Troy Limited and five other unrelated companies that sell water filtration systems (the “ITC Action”). The complaint in the ITC Action also alleged patent infringement by the Company with respect to a limited set of PUR gravity-fed water filtration systems. This action sought injunctive relief to prevent entry of certain accused PUR products (and certain other products) into the U.S. and cessation of marketing and sales of existing inventory that is already in the U.S. On February 28, 2023, the ITC issued an Initial Determination in the ITC Action, tentatively ruling against the Company and the other unrelated respondents. The ITC has a guaranteed review process, and thus all respondents, including the Company, filed a petition with the ITC for a full review of the Initial Determination. On September 19, 2023, the ITC issued its Final Determination in the Company’s favor. The ITC determined there was no violation by the Company and terminated the investigation. Brita LP is appealing the ITC's decision to the Federal Circuit (“CAFC Appeal”) and filed its Notice of Appeal on October 24, 2023. The Company intervened in the CAFC Appeal, but as of the date of the filing of this Form 10-Q, no hearings have been scheduled. The Patent Litigation remains stayed for the time being. We cannot predict the outcome of these legal proceedings, the amount or range of any potential loss, when the proceedings will be resolved, or customer acceptance of any replacement water filter. Litigation is inherently unpredictable, and the resolution or disposition of these proceedings could, if adversely determined, have a material and adverse impact on our financial position and results of operations. For additional information regarding the Patent Litigation and the ITC Action, see Note 7 to the accompanying condensed consolidated financial statements.

Impact of Macroeconomic Trends

The Federal Open Market Committee increased the benchmark interest rate by 50 basis points and 25 basis points during the first and second quarters of fiscal 2024, respectively. As a result, we incurred higher average interest rates during the first quarter of fiscal 2025 compared to the same period last year. The Federal Open Market Committee has indicated that it may lower interest rates in fiscal 2025. While the actual timing and extent of future changes in interest rates remains unknown, lower average interest rates would reduce interest expense on our outstanding variable rate debt. The financial markets, the global economy and global supply chain may also be adversely affected by the current or anticipated impact of military conflicts or other geopolitical events. High inflation and interest rates have also negatively impacted consumer disposable income, credit availability and spending, among others, which have adversely impacted our business, financial condition, cash flows and results of operations during

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fiscal 2024 and the first quarter of fiscal 2025 and may continue to have an adverse impact during the remainder of fiscal year 2025. See further discussion below under “Consumer Spending and Changes in Shopping Preferences.” We expect continued uncertainty in our business and the global economy due to pressure from inflation and consumer confidence, any of which may adversely impact our results.

Consumer Spending and Changes in Shopping Preferences

Our business depends upon discretionary consumer demand for most of our products and primarily operates within mature and highly developed consumer markets. The principal driver of our operating performance is the strength of the U.S. retail economy. Approximately 67% and 72% of our consolidated net sales revenue was from U.S. shipments during the three month periods ended May 31, 2024 and 2023, respectively.

Among other things, high levels of inflation and interest rates may negatively impact consumer disposable income, credit availability and spending. Consumer purchases of discretionary items, including the products that we offer, generally decline during recessionary periods or periods of economic uncertainty, when disposable income is reduced or when there is a reduction in consumer confidence. Dynamic changes in consumer spending and shopping patterns are also having an impact on retailer inventory levels. Our ability to sell to retailers is predicated on their ability to sell to the end consumer. During fiscal year 2024, we experienced some improvement in replenishment orders from certain retail customers in certain product categories relative to fiscal 2023. However, during the first quarter of fiscal 2025, we experienced reduced replenishment orders from retail customers in line with softer consumer demand and discretionary spending, which adversely impacted our sales, results of operations and cash flows. If orders from our retail customers continue to be adversely impacted, our sales, results of operations and cash flows may continue to be adversely impacted. We expect continued uncertainty in our business and the global economy due to inflation and changes in consumer spending patterns. Accordingly, our liquidity and financial results could be impacted in ways that we are not able to predict today.

Our concentration of sales reflects the continued evolution of consumer shopping preferences. Our net sales to pure-play online retailers and retail customers fulfilling end-consumer online orders, as well as our own online sales directly to consumers (collectively “online channel net sales”) comprised approximately 25% of our total consolidated net sales revenue for the three month period ended May 31, 2024, and declined approximately 14% compared to the same period in the prior year. For the three month period ended May 31, 2023, our online channel net sales comprised approximately 26% of our total consolidated net sales revenue, and grew approximately 8% as compared to the same period in the prior year.

With the continued importance of online sales in the retail landscape, many brick and mortar retailers are aggressively looking for ways to improve their customer delivery capabilities to be able to meet customer expectations. As a result, it has become increasingly important for us to leverage our distribution capabilities in order to meet the changing demands of our customers, including increasing our online capabilities to support our direct-to-consumer sales channels and online channel sales by our retail customers. In March 2023, we completed the construction of an additional distribution facility in Gallaway, Tennessee that became operational during the first quarter of fiscal 2024 and includes state-of-the-art automation suited to fulfill direct-to-consumer and online channel orders. During the first quarter of fiscal 2025, we experienced automation system startup issues at the Tennessee distribution facility which impacted some of our Home & Outdoor segment's small retail customer and direct-to-consumer orders. As a result, our sales were adversely impacted due to shipping disruptions, and we incurred additional costs and lost efficiency as we worked to remediate the issues. We expect the shipping disruption to continue through the second quarter of fiscal 2025. Additionally, we have invested in a centralized cloud-based e-commerce platform, which some of our brands are currently utilizing. The centralized cloud-based e-commerce platform will enable us to leverage a common system and rapidly

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deploy new capabilities across all of our brands, as well as more easily integrate new brands. We believe this platform enhances the customer experience by strengthening the digital presentation and product browsing capabilities and improving the checkout process, order delivery and post-order customer care.

EPA Compliance Costs

During fiscal 2022 and 2023, we were in discussions with the U.S. Environmental Protection Agency (the “EPA”) regarding the compliance of packaging claims on certain of our products in the air and water filtration categories and a limited subset of humidifier products within the Beauty & Wellness segment that are sold in the U.S. The EPA did not raise any product quality, safety or performance issues. As a result of these packaging compliance discussions, we voluntarily implemented a temporary stop shipment action on the impacted products as we worked with the EPA towards an expedient resolution. We resumed normalized levels of shipping of the affected inventory during fiscal 2022 and we completed the repackaging and relabeling of our existing inventory of impacted products during fiscal 2023. Additionally, as a result of continuing dialogue with the EPA, we executed further repackaging and relabeling plans on certain additional humidifier products and certain additional air filtration products, which were also completed during fiscal 2023. Ongoing settlement discussions with the EPA related to this matter may result in the imposition of fines or penalties in the future. Such potential fines or penalties cannot be estimated. See Note 7 to our condensed consolidated financial statements for additional information.

Foreign Currency Exchange Rate Fluctuations

Due to the nature of our operations, we have exposure to the impact of fluctuations in exchange rates from transactions that are denominated in a currency other than our functional currency (the U.S. Dollar). Such transactions include sales and operating expenses. The most significant currencies affecting our operating results are the Euro, British Pound and Canadian Dollar.

For the three months ended May 31, 2024, changes in foreign currency exchange rates had a favorable year-over-year impact on consolidated U.S. Dollar reported net sales revenue of approximately $0.4 million, or 0.1%, compared to an unfavorable year-over-year impact of $0.5 million, or 0.1%, for the same period last year.

Variability of the Cough/Cold/Flu Season

Sales in several of our Beauty & Wellness segment categories are highly correlated to the severity of winter weather and cough/cold/flu incidence. In the U.S., the cough/cold/flu season historically runs from November through March, with peak activity normally in January to March. The 2023-2024 cough/cold/flu season was below historical averages seen prior to the impact of COVID-19. The 2022-2023 cough/cold/flu season was above historical averages, primarily early in the season, as respiratory infections surged in both children and adults and COVID-19 continued to be prevalent.

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RESULTS OF OPERATIONS

The following table provides selected operating data, in U.S. Dollars, as a percentage of net sales revenue, and as a year-over-year percentage change.


	Three Months Ended May 31,								% of Sales Revenue, net
(in thousands)	2024		2023		$ Change		% Change		2024		2023
Sales revenue by segment, net
Home & Outdoor	$	198,459	$	217,144	$	(18,685)	(8.6)	%	47.6	%	45.7	%
Beauty & Wellness	218,388		257,528		(39,140)		(15.2)	%	52.4	%	54.3	%
Total sales revenue, net	416,847		474,672		(57,825)		(12.2)	%	100.0	%	100.0	%
Cost of goods sold	213,768		259,041		(45,273)		(17.5)	%	51.3	%	54.6	%
Gross profit	203,079		215,631		(12,552)		(5.8)	%	48.7	%	45.4	%
SG&A	170,481		167,635		2,846		1.7	%	40.9	%	35.3	%

Restructuring charges	1,835		7,355		(5,520)		(75.1)	%	0.4	%	1.5	%
Operating income	30,763		40,641		(9,878)		(24.3)	%	7.4	%	8.6	%
Non-operating income, net	100		137		(37)		(27.0)	%	—	%	—	%
Interest expense	12,543		14,052		(1,509)		(10.7)	%	3.0	%	3.0	%
Income before income tax	18,320		26,726		(8,406)		(31.5)	%	4.4	%	5.6	%
Income tax expense	12,116		4,145		7,971		*		2.9	%	0.9	%


Net income	$	6,204	$	22,581	$	(16,377)	(72.5)	%	1.5	%	4.8	%

* Calculation is not meaningful.

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First Quarter Fiscal 2025 Financial Results

•Consolidated net sales revenue decreased 12.2%, or $57.8 million, to $416.8 million for the three months ended May 31, 2024, compared to $474.7 million for the same period last year.

•Consolidated operating income decreased 24.3%, or $9.9 million, to $30.8 million for the three months ended May 31, 2024, compared to $40.6 million for the same period last year. Consolidated operating margin decreased 1.2 percentage points to 7.4% of consolidated net sales revenue for the three months ended May 31, 2024, compared to 8.6% for the same period last year.

•Consolidated adjusted operating income decreased 35.1%, or $23.2 million, to $43.0 million for the three months ended May 31, 2024, compared to $66.2 million for the same period last year. Consolidated adjusted operating margin decreased 3.6 percentage points to 10.3% of consolidated net sales revenue for the three months ended May 31, 2024, compared to 13.9% for the same period last year.

•Net income decreased 72.5%, or $16.4 million, to $6.2 million for the three months ended May 31, 2024, compared to $22.6 million for the same period last year. Diluted EPS decreased 72.3% to $0.26 for the three months ended May 31, 2024, compared to $0.94 for the same period last year.

•Adjusted income decreased 50.0%, or $23.4 million, to $23.3 million for the three months ended May 31, 2024, compared to $46.7 million for the same period last year. Adjusted diluted EPS decreased 49.0% to $0.99 for the three months ended May 31, 2024, compared to $1.94 for the same period last year.

Consolidated and Segment Net Sales Revenue

The following table summarizes the impact that Organic business and foreign currency had on our net sales revenue by segment:


	Three Months Ended May 31,
(in thousands)	Home & Outdoor			Beauty & Wellness			Total
Fiscal 2024 sales revenue, net	$	217,144		$	257,528		$	474,672
Organic business	(18,654)			(39,528)			(58,182)
Impact of foreign currency	(31)			388			357

Change in sales revenue, net	(18,685)			(39,140)			(57,825)
Fiscal 2025 sales revenue, net	$	198,459		$	218,388		$	416,847

Total net sales revenue growth (decline)	(8.6)		%	(15.2)		%	(12.2)		%
Organic business	(8.6)		%	(15.3)		%	(12.3)		%
Impact of foreign currency	—		%	0.2		%	0.1		%

In the above tables, Organic business refers to our net sales revenue associated with product lines or brands after the first twelve months from the date the product line or brand was acquired, excluding the impact that foreign currency remeasurement had on reported net sales revenue. Net sales revenue from internally developed brands or product lines is considered Organic business activity.

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Consolidated Net Sales Revenue

Comparison of First Quarter Fiscal 2025 to First Quarter Fiscal 2024

Consolidated net sales revenue decreased $57.8 million, or 12.2%, to $416.8 million, compared to $474.7 million, primarily driven by a decrease from Organic business. The decline in Organic business was primarily due to:

•a decline in sales of hair appliances, prestige hair care products and humidifiers in Beauty & Wellness primarily driven by softer consumer demand, shifts in consumer spending, increased competition in hair appliances and prestige hair care products, and reduced orders from retail customers; and

•a decline in Home & Outdoor primarily due to lower replenishment orders from retail customers, softer consumer demand, shifts in consumer spending, a slowdown in the technical and everyday lifestyle pack categories, increased competition in the insulated beverageware category, and the impact of the shipping disruption at our Tennessee distribution facility due to automation startup issues affecting some of the segment's small retail customer and direct-to-consumer orders.

These factors were partially offset by international growth and higher sales of fans in Beauty & Wellness.

Net sales revenue was favorably impacted by net foreign currency fluctuations of approximately $0.4 million, or 0.1%.

Segment Net Sales Revenue

Home & Outdoor

Comparison of First Quarter Fiscal 2025 to First Quarter Fiscal 2024

Net sales revenue decreased $18.7 million, or 8.6%, to $198.5 million, compared to $217.1 million. The decrease was driven by a decline from Organic business primarily due to:

•lower replenishment orders from retail customers;

•softer consumer demand;

•shifts in consumer spending;

•a slowdown in the technical and everyday lifestyle pack categories;

•increased competition in the insulated beverageware category; and

•the impact of the shipping disruption at our Tennessee distribution facility due to automation startup issues affecting some of the segment's small retail customer and direct-to-consumer orders.

These factors were partially offset by:

•new distribution, which substantially began during the second quarter of fiscal 2024, benefiting our home category sales in comparison to the prior year period;

•incremental sales from the launch of the travel tumbler in the second quarter of fiscal 2024; and

•an increase in international sales primarily driven by expanded retailer distribution in the insulated beverageware category.

The impact of net foreign currency fluctuations on net sales revenue was not meaningful.

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Beauty & Wellness

Comparison of First Quarter Fiscal 2025 to First Quarter Fiscal 2024

Net sales revenue decreased $39.1 million, or 15.2%, to $218.4 million, compared to $257.5 million. The decrease was driven by a decline from Organic business, primarily due to:

•a decline in sales of hair appliances and prestige hair care products primarily due to softer consumer demand, shifts in consumer spending, increased competition and shipping disruption from Curlsmith system integration challenges;

•lower sales of humidifiers, primarily driven by reduced replenishment orders from retail customers due to a softer 2023/2024 illness season;

•higher sales dilution from trade discounts, allowances and promotional programs; and

•a decrease in water filtration product revenue primarily driven by the expiration of an out-license relationship.

These factors were partially offset by an increase in fan sales.

Net sales revenue was favorably impacted by net foreign currency fluctuations of approximately $0.4 million, or 0.2%.

Consolidated Gross Profit Margin

Comparison of First Quarter Fiscal 2025 to First Quarter Fiscal 2024

Consolidated gross profit margin increased 3.3 percentage points to 48.7%, compared to 45.4%. The increase in consolidated gross profit margin was primarily due to:

•a favorable segment mix with a higher percentage of Home & Outdoor sales at a higher margin;

•favorable inventory obsolescence expense year-over-year; and

•lower commodity and product costs, partly driven by Project Pegasus initiatives.

These factors were partially offset by:

•a less favorable product mix within the segments;

•a less favorable customer mix within Home & Outdoor; and

•higher sales dilution from trade discounts, allowances and promotional programs in Beauty & Wellness.

Consolidated SG&A

Comparison of First Quarter Fiscal 2025 to First Quarter Fiscal 2024

Consolidated SG&A ratio increased 5.6 percentage points to 40.9%, compared to 35.3%. The increase in the consolidated SG&A ratio was primarily due to:

•higher marketing expense as we reinvested back into our brands;

•additional costs and lost efficiency associated with automation startup issues at our Tennessee distribution facility impacting small retail customer and direct-to-consumer orders;

•an increase in depreciation expense primarily related to our new distribution facility;

•unfavorable health insurance and product liability expense; and

•the impact of unfavorable operating leverage due to the decrease in net sales.

These factors were partially offset by the favorable comparative impact of a charge of $4.2 million related to the bankruptcy of Bed, Bath & Beyond incurred in the prior year period and lower share-based compensation expense.

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Restructuring Charges

During the three month periods ended May 31, 2024 and 2023, we incurred $1.8 million and $7.4 million, respectively, of pre-tax restructuring costs in connection with Project Pegasus, which were primarily comprised of severance and employee related costs and professional fees, and made total cash restructuring payments of $3.0 million and $9.4 million, respectively. We had a remaining liability of $3.6 million as of May 31, 2024.

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Operating Income, Operating Margin, Adjusted Operating Income (non-GAAP), and Adjusted Operating Margin (non-GAAP) by Segment

In order to provide a better understanding of the impact of certain items on our operating income, the tables that follow report the comparative pre-tax impact of Bed, Bath & Beyond bankruptcy, restructuring charges, amortization of intangible assets, and non-cash share-based compensation, as applicable, on operating income and operating margin for each segment and in total for the periods presented below. Adjusted operating income and adjusted operating margin may be considered non-GAAP financial measures as contemplated by SEC Regulation G, Rule 100. For additional information regarding management’s decision to present this non-GAAP financial information, see the introduction to this Item 2., “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”


	Three Months Ended May 31, 2024
(in thousands)	Home & Outdoor				Beauty & Wellness				Total
Operating income, as reported (GAAP)	$	15,850	8.0	%	$	14,913	6.8	%	$	30,763	7.4	%


Restructuring charges	440		0.2	%	1,395		0.6	%	1,835		0.4	%
Subtotal	16,290		8.2	%	16,308		7.5	%	32,598		7.8	%
Amortization of intangible assets	1,765		0.9	%	2,755		1.3	%	4,520		1.1	%
Non-cash share-based compensation	3,013		1.5	%	2,820		1.3	%	5,833		1.4	%
Adjusted operating income (non-GAAP)	$	21,068	10.6	%	$	21,883	10.0	%	$	42,951	10.3	%


	Three Months Ended May 31, 2023
(in thousands)	Home & Outdoor				Beauty & Wellness				Total
Operating income, as reported (GAAP)	$	22,116	10.2	%	$	18,525	7.2	%	$	40,641	8.6	%


Bed, Bath & Beyond bankruptcy	3,087		1.4	%	1,126		0.4	%	4,213		0.9	%
Restructuring charges	2,790		1.3	%	4,565		1.8	%	7,355		1.5	%
Subtotal	27,993		12.9	%	24,216		9.4	%	52,209		11.0	%
Amortization of intangible assets	1,777		0.8	%	2,880		1.1	%	4,657		1.0	%
Non-cash share-based compensation	4,498		2.1	%	4,799		1.9	%	9,297		2.0	%
Adjusted operating income (non-GAAP)	$	34,268	15.8	%	$	31,895	12.4	%	$	66,163	13.9	%

Consolidated Operating Income

Comparison of First Quarter Fiscal 2025 to First Quarter Fiscal 2024

Consolidated operating income was $30.8 million, or 7.4% of net sales revenue, compared to $40.6 million, or 8.6% of net sales revenue. The 1.2 percentage point decrease in consolidated operating margin was primarily due to:

•higher marketing expense as we reinvested back into our brands;

•additional costs and lost efficiency associated with automation startup issues at our Tennessee distribution facility impacting small retail customer and direct-to-consumer orders;

•higher sales dilution from trade discounts, allowances, and promotional programs;

•an increase in depreciation expense primarily related to our new distribution facility;

•unfavorable health insurance and product liability expense;

•a less favorable product mix within the segments and a less favorable customer mix within Home & Outdoor; and

•the impact of unfavorable operating leverage due to the decrease in net sales.

These factors were partially offset by:

•a favorable segment mix with a higher percentage of Home & Outdoor sales at a higher margin;

•favorable inventory obsolescence expense year-over-year;

•lower commodity and product costs, partly driven by Project Pegasus initiatives; and

•a decrease in restructuring charges of $5.5 million.

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Consolidated adjusted operating income decreased 35.1% to $43.0 million, or 10.3% of net sales revenue, compared to $66.2 million, or 13.9% of net sales revenue.

Home & Outdoor

Comparison of First Quarter Fiscal 2025 to First Quarter Fiscal 2024

Operating income was $15.9 million, or 8.0% of segment net sales revenue, compared to $22.1 million, or 10.2% of segment net sales revenue. The 2.2 percentage point decrease in segment operating margin was primarily due to:

•higher marketing expense as we reinvested back into our brands;

•additional costs and lost efficiency associated with automation startup issues at our Tennessee distribution facility impacting small retail customer and direct-to-consumer orders;

•an increase in depreciation expense primarily related to our new distribution facility;

•the impact of unfavorable operating leverage due to the decrease in net sales; and

•a less favorable customer and product mix

These factors were partially offset by:

•favorable inventory obsolescence expense year-over-year;

•lower commodity and product costs, partly driven by Project Pegasus initiatives; and

•the favorable comparative impact of a charge of $3.1 million related to the bankruptcy of Bed, Bath & Beyond incurred in the prior year period.

Adjusted operating income decreased 38.5% to $21.1 million, or 10.6% of segment net sales revenue, compared to $34.3 million, or 15.8% of segment net sales revenue.

Beauty & Wellness

Comparison of First Quarter Fiscal 2025 to First Quarter Fiscal 2024

Operating income was $14.9 million, or 6.8% of segment net sales revenue, compared to $18.5 million, or 7.2% of segment net sales revenue. The 0.4 percentage point decrease in segment operating margin was primarily due to:

•higher marketing expense as we reinvested back into our brands;

•a less favorable product mix;

•higher sales dilution from trade discounts, allowances and promotional programs;

•unfavorable health insurance and product liability expense; and

•the impact of unfavorable operating leverage due to the decrease in net sales.

These factors were partially offset by:

•favorable inventory obsolescence expense year-over-year;

•lower commodity and product costs, partly driven by Project Pegasus initiatives; and

•a decrease in restructuring charges of $3.2 million.

Adjusted operating income decreased 31.4% to $21.9 million, or 10.0% of segment net sales revenue, compared to $31.9 million, or 12.4% of segment net sales revenue.

Interest Expense

Comparison of First Quarter Fiscal 2025 to First Quarter Fiscal 2024

Interest expense was $12.5 million, compared to $14.1 million. The decrease in interest expense was primarily due to lower average borrowings outstanding, partially offset by a higher average effective interest rate compared to the same period last year.

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Income Tax Expense

The period-over-period comparison of our effective tax rate is often impacted by the mix of income in our various tax jurisdictions. Due to our organization in Bermuda and the ownership structure of our foreign subsidiaries, many of which are not owned directly or indirectly by a U.S. parent company, an immaterial amount of our foreign income is subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by our foreign subsidiaries, resulting in proportionally higher earnings in jurisdictions with lower statutory tax rates, which decreases our overall effective tax rate.

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Net Income, Diluted EPS, Adjusted Income (non-GAAP), and Adjusted Diluted EPS (non-GAAP)

In order to provide a better understanding of the impact of certain items on our income and diluted EPS, the tables that follow report the comparative after-tax impact of Barbados tax reform, Bed, Bath & Beyond bankruptcy, restructuring charges, amortization of intangible assets, and non-cash share-based compensation, as applicable, on income and diluted EPS for the periods presented below. Adjusted income and adjusted diluted EPS may be considered non-GAAP financial measures as contemplated by SEC Regulation G, Rule 100. For additional information regarding management’s decision to present this non-GAAP financial information, see the introduction to this Item 2., “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”


	Three Months Ended May 31, 2024
	Income						Diluted EPS
(in thousands, except per share data)	Before Tax		Tax		Net of Tax		Before Tax		Tax		Net of Tax
As reported (GAAP)	$	18,320	$	12,116	$	6,204	$	0.78	$	0.51	$	0.26


Barbados tax reform	—		(6,045)		6,045		—		(0.26)		0.26
Restructuring charges	1,835		165		1,670		0.08		0.01		0.07
Subtotal	20,155		6,236		13,919		0.85		0.26		0.59
Amortization of intangible assets	4,520		661		3,859		0.19		0.03		0.16
Non-cash share-based compensation	5,833		264		5,569		0.25		0.01		0.24
Adjusted (non-GAAP)	$	30,508	$	7,161	$	23,347	$	1.29	$	0.30	$	0.99

Weighted average shares of common stock used in computing diluted EPS											23,633


	Three Months Ended May 31, 2023
	Income						Diluted EPS
(in thousands, except per share data)	Before Tax		Tax		Net of Tax		Before Tax		Tax		Net of Tax
As reported (GAAP)	$	26,726	$	4,145	$	22,581	$	1.11	$	0.17	$	0.94


Bed, Bath & Beyond bankruptcy	4,213		53		4,160		0.17		—		0.17
Restructuring charges	7,355		92		7,263		0.30		—		0.30
Subtotal	38,294		4,290		34,004		1.59		0.18		1.41
Amortization of intangible assets	4,657		606		4,051		0.19		0.03		0.17
Non-cash share-based compensation	9,297		641		8,656		0.39		0.03		0.36
Adjusted (non-GAAP)	$	52,248	$	5,537	$	46,711	$	2.16	$	0.23	$	1.94

Weighted average shares of common stock used in computing diluted EPS											24,134

Comparison of First Quarter Fiscal 2025 to First Quarter Fiscal 2024

Net income was $6.2 million, compared to $22.6 million. Diluted EPS was $0.26, compared to $0.94. Diluted EPS decreased primarily due to lower operating income and an increase in the effective income tax rate, partially offset by a decrease in interest expense.

Adjusted income decreased $23.4 million, or 50.0%, to $23.3 million, compared to $46.7 million. Adjusted diluted EPS decreased 49.0% to $0.99, compared to $1.94.

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Liquidity and Capital Resources

We principally rely on our cash flow from operations and borrowings under our Credit Agreement (as defined below) to finance our operations, capital and intangible asset expenditures, acquisitions and share repurchases. Historically, our principal uses of cash to fund our operations have included operating expenses, primarily SG&A, and working capital, predominantly for inventory purchases and the extension of credit to our retail customers. We have typically been able to generate positive cash flow from operations sufficient to fund our operating activities. In the past, we have utilized a combination of available cash and existing, or additional, sources of financing to fund strategic acquisitions, share repurchases and capital investments. We generated $25.3 million in cash from operations during the first quarter of fiscal 2025 and had $16.1 million in cash and cash equivalents at May 31, 2024, substantially all of which was held by our foreign subsidiaries. We have no existing activities involving special purpose entities or off-balance sheet financing.

We believe our short-term liquidity requirements will primarily consist of operating and working capital requirements, capital expenditures and interest payments on our debt.

Based on our current financial condition and current operations, we believe that cash flows from operations and available financing sources will continue to provide sufficient capital resources to fund our foreseeable short- and long-term liquidity requirements.

We continue to evaluate acquisition opportunities on a regular basis. We may finance acquisition activity with available cash, the issuance of shares of common stock, additional debt, or other sources of financing, depending upon the size and nature of any such transaction and the status of the capital markets at the time of such acquisition.

We may also elect to repurchase additional shares of common stock under our Board of Directors' authorization, subject to limitations contained in our debt agreement and based upon our assessment of a number of factors, including share price, trading volume and general market conditions, working capital requirements, general business conditions, financial conditions, any applicable contractual limitations, and other factors, including alternative investment opportunities. We may finance share repurchases with available cash, additional debt or other sources of financing. For additional information, see Part II, Item 5. “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” in our Form 10-K and Part II, Item 2., “Unregistered Sales of Equity Securities and Use of Proceeds” in this report.

Operating Activities

Operating activities provided net cash of $25.3 million for the three months ended May 31, 2024, compared to net cash provided of $121.1 million for the same period last year. The decrease in cash provided by operating activities was primarily driven by increases in payments for inventory, annual incentive compensation, and income taxes, as well as a decrease in cash earnings, partially offset by decreases in cash used primarily for accounts receivable, restructuring activities and interest payments.

Investing Activities

Investing activities used net cash of $9.2 million during the three months ended May 31, 2024, compared to net cash used of $11.6 million for the same period last year. The decrease in cash used by investing activities was primarily due to a decrease in capital and intangible asset expenditures during the first quarter of fiscal 2025. The decrease in capital and intangible asset expenditures was primarily due to the substantial completion of our new two million square foot distribution facility in March 2023 for which we incurred higher capital expenditures during the prior year period. Capital and intangible asset

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expenditures during both periods also included expenditures for computer, furniture and other equipment and tooling, molds, and other production equipment.

Financing Activities

Financing activities used net cash of $18.5 million during the three months ended May 31, 2024, compared to net cash used of $99.6 million for the same period last year. The decrease in cash used by financing activities is primarily due to net borrowings on our revolving loans of $84.0 million to help fund payments for repurchases of common stock of $103.0 million during the three months ended May 31, 2024 in comparison to net repayments of $96.0 million during the same period last year.

Credit Agreement

The floating interest rates on our borrowings under the Credit Agreement are hedged with interest rate swaps to effectively fix interest rates on $300 million and $500 million of the outstanding principal balance under the revolving loans as of May 31, 2024 and February 29, 2024, respectively. For additional information regarding our interest rate swaps, see Notes 9, 10, and 11 to the accompanying condensed consolidated financial statements.

As of May 31, 2024, the outstanding Credit Agreement principal balance was $754.3 million (excluding prepaid financing fees), the balance of outstanding letters of credit was $15.6 million and the amount available for revolving loans under the Credit Agreement was $478.5 million. Covenants in the Credit Agreement limit the amount of total indebtedness we can incur. As of May 31, 2024, these covenants effectively limited our ability to incur more than $336.9 million of additional debt from all sources, including the Credit Agreement, or $478.5 million in the event a qualified acquisition is consummated.

As of May 31, 2024, we were in compliance with all covenants as defined under the terms of the Credit Agreement.

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Critical Accounting Policies and Estimates

The SEC defines critical accounting estimates as those made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on a company's financial condition or results of operations. For a discussion of the estimates that we consider to meet this definition and represent our more critical estimates and assumptions used in the preparation of our consolidated financial statements, see the section entitled “Critical Accounting Policies and Estimates” in our Form 10-K. Since the filing of our Form 10-K, there have been no material changes in our critical accounting policies and estimates from those disclosed therein.

Information Regarding Forward-Looking Statements

Certain statements in this report, including those in documents and our other filings with the SEC referenced herein, may constitute “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Generally, the words “anticipates”, “assumes”, “believes”, “expects”, “plans”, “may”, “will”, “might”, “would”, “should”, “seeks”, “estimates”, “project”, “predict”, “potential”, “currently”, “continue”, “intends”, “outlook”, “forecasts”, “targets”, “reflects”, “could”, and other similar words identify forward-looking statements. All statements that address operating results, events or developments that we expect or anticipate may occur in the future, including statements related to sales, expenses, EPS results, and statements expressing general expectations about future operating results, are forward-looking statements and are based upon our current expectations and various assumptions. We believe there is a reasonable basis for our expectations and assumptions, but there can be no assurance that we will realize our expectations or that our assumptions will prove correct. Forward-looking statements are only as of the date they are made and are subject to risks that could cause them to differ materially from actual results. Accordingly, we caution readers not to place undue reliance on forward-looking statements. We believe that these risks include but are not limited to the risks described or referenced in this report and that are otherwise described from time to time in our SEC reports as filed. We undertake no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.

Such risks are not limited to, but may include:

•the geographic concentration of certain U.S. distribution facilities which increases our risk to disruptions that could affect our ability to deliver products in a timely manner;

•the occurrence of cyber incidents, or failure by us or our third-party service providers to maintain cybersecurity and the integrity of confidential internal or customer data;

•a cybersecurity breach, obsolescence or interruptions in the operation of our central global Enterprise Resource Planning systems and other peripheral information systems;

•our ability to develop and introduce a continuing stream of innovative new products to meet changing consumer preferences;

•actions taken by large customers that may adversely affect our gross profit and operating results;

•our dependence on sales to several large customers and the risks associated with any loss of, or substantial decline in, sales to top customers;

•our dependence on third-party manufacturers, most of which are located in Asia, and any inability to obtain products from such manufacturers;

•our ability to deliver products to our customers in a timely manner and according to their fulfillment standards;

•the risks associated with trade barriers, exchange controls, expropriations, and other risks associated with domestic and foreign operations including uncertainty and business interruptions resulting from political changes and events in the U.S. and abroad, and volatility in the global credit and financial markets and economy;

•our dependence on the strength of retail economies and vulnerabilities to any prolonged

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economic downturn, including a downturn from the effects of macroeconomic conditions, any public health crises or similar conditions;

•the risks associated with weather conditions, the duration and severity of the cold and flu season and other related factors;

•our reliance on our CEO and a limited number of other key senior officers to operate our business;

•the risks associated with the use of licensed trademarks from or to third parties;

•our ability to execute and realize expected synergies from strategic business initiatives such as acquisitions, divestitures and global restructuring plans, including Project Pegasus;

•the risks of potential changes in laws and regulations, including environmental, employment and health and safety and tax laws, and the costs and complexities of compliance with such laws;

•the risks associated with increased focus and expectations on climate change and other environmental, social and governance matters;

•the risks associated with significant changes in or our compliance with regulations, interpretations or product certification requirements;

•the risks associated with global legal developments regarding privacy and data security that could result in changes to our business practices, penalties, increased cost of operations, or otherwise harm our business;

•the risks of significant tariffs or other restrictions being placed on imports from China, Mexico or Vietnam or any retaliatory trade measures taken by China, Mexico or Vietnam;

•our dependence on whether we are classified as a “controlled foreign corporation” for U.S. federal income tax purposes which impacts the tax treatment of its non-U.S. income;

•the risks associated with legislation enacted in Bermuda and Barbados in response to the European Union’s review of harmful tax competition;

•the risks associated with accounting for tax positions and the resolution of tax disputes;

•the risks associated with product recalls, product liability and other claims against us;

•associated financial risks including but not limited to, increased costs of raw materials, energy and transportation;

•significant impairment of our goodwill, indefinite-lived and definite-lived intangible assets or other long-lived assets;

•the risks associated with foreign currency exchange rate fluctuations;

•the risks to our liquidity or cost of capital which may be materially adversely affected by constraints or changes in the capital and credit markets, interest rates and limitations under our financing arrangements; and

•projections of product demand, sales and net income, which are highly subjective in nature, and from which future sales and net income could vary by a material amount.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the information provided in the section entitled “Quantitative and Qualitative Disclosures about Market Risk” in our Form 10-K. Additional information regarding our risk management activities can be found in Notes 8, 9 and 10 to the accompanying condensed consolidated financial statements.

ITEM 4. CONTROLS AND PROCEDURES

Based on their evaluation, as of the end of the period covered by this Quarterly Report on Form 10-Q, our Company’s Chief Executive Officer and Chief Financial Officer have concluded that our Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) are effective at the reasonable assurance level. During the period covered by this Quarterly Report on Form 10-Q, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are involved in various legal claims and proceedings in the normal course of operations. We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity, except as described in Part 1, Item 3. “Legal Proceedings” of our Form 10-K. Since the filing of our Form 10-K, there have been no material changes in our legal proceedings from those disclosed therein except as updated herein in the discussion in Note 7 to the accompanying condensed consolidated financial statements.

ITEM 1A. RISK FACTORS

The ownership of our common stock involves a number of risks and uncertainties. When evaluating the Company and our business before making an investment decision regarding our securities, potential investors should carefully consider the risk factors and uncertainties described in Part 1, Item 1A. “Risk Factors” of our Form 10-K. Since the filing of our Form 10-K, there have been no material changes in our risk factors from those disclosed therein.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

In August 2021, our Board of Directors authorized the repurchase of up to $500 million of our outstanding common stock. The authorization became effective August 25, 2021, for a period of three years, and replaced our former repurchase authorization. These repurchases may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, trading volume and general market conditions, working capital requirements, general business conditions, financial conditions, any applicable contractual limitations, and other factors, including alternative investment opportunities. See Note 5 to the accompanying condensed consolidated financial statements for additional information.


Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Maximum Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (in thousands) (2)
March 1 through March 31, 2024	18,744	$	124.37	18,744	$	346,070
April 1 through April 30, 2024	270,305	92.73		270,305	321,005
May 1 through May 31, 2024	747,566	101.18		747,566	245,366
Total	1,036,615	$	99.40	1,036,615

(1)The number of shares includes shares of common stock acquired from associates who tendered shares to: (i) satisfy the tax withholding on equity awards as part of our long-term incentive plans or (ii) satisfy the exercise price on stock option exercises. For the three months ended May 31, 2024, 25,372 shares were acquired from associates at an average per share price of $118.85.

(2)Reflects the remaining dollar value of shares that could be purchased under our current stock repurchase authorization through the expiration or termination of the plan. For additional information, see Note 5 to the accompanying condensed consolidated financial statements.

ITEM 5. OTHER INFORMATION

Rule 10b5-1 Trading Plans

During the three month period ended May 31, 2024, none of our officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”

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ITEM 6.

EXHIBITS

(a)

Exhibits

10.1†

Amended and Restated Severance Agreement between Helen of Troy Nevada Corporation and Tessa Judge, dated March 1, 2024 (incorporated by reference to Exhibit 10.8 to the Company’s Annual Report on Form 10 -K for the fiscal year ended February 29, 2024 , filed with the Securities and Exchange Commission on April 2 4, 202 4 ).

31.1*

Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*

Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32**

Joint certification of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101

Financial statements from the Quarterly Report on Form 10-Q of the Company for the quarter ended May 31, 2024, formatted in Inline eXtensible Business Reporting Language (“iXBRL”): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Income, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Stockholders' Equity, (v) Condensed Consolidated Statements of Cash Flows and (vi) Notes to the Condensed Consolidated Financial Statements.

104

Cover Page, Interactive Data File formatted in iXBRL and contained in Exhibit 101.

* Filed herewith.

** Furnished herewith.

† Management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		HELEN OF TROY LIMITED
		(Registrant)

Date:	July 9, 2024	/s/ Noel M. Geoffroy
		Noel M. Geoffroy
		Chief Executive Officer, Director and Principal Executive Officer

Date:	July 9, 2024	/s/ Brian L. Grass
		Brian L. Grass
		Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer

EXHIBIT 31.1

CERTIFICATION

I, Noel M. Geoffroy, certify that:

1.I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended May 31, 2024 of Helen of Troy Limited;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: July 9, 2024


/s/ Noel M. Geoffroy
Noel M. Geoffroy
Chief Executive Officer,
Director and Principal Executive Officer

EXHIBIT 31.2

CERTIFICATION

I, Brian L. Grass, certify that:

1.I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended May 31, 2024 of Helen of Troy Limited;

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: July 9, 2024


/s/ Brian L. Grass
Brian L. Grass
Chief Financial Officer, Principal Financial
Officer and Principal Accounting Officer

EXHIBIT 32

CERTIFICATION

In connection with the quarterly report of Helen of Troy Limited (the “Company”) on Form 10-Q for the fiscal quarter ended May 31, 2024, as filed with the Securities and Exchange Commission (the “Report”), and pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned, the Chief Executive Officer and Chief Financial Officer of the Company, hereby certifies that to the best of their knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: July 9, 2024


/s/ Noel M. Geoffroy
Noel M. Geoffroy
Chief Executive Officer,
Director and Principal Executive Officer

/s/ Brian L. Grass
Brian L. Grass
Chief Financial Officer, Principal Financial Officer
and Principal Accounting Officer

This certification is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. This certification is not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates it by reference.

Cover page - shares	3 Months Ended
Cover page - shares	May 31, 2024	Jun. 28, 2024
Entity Addresses [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 31, 2024
Document Transition Report	false
Entity File Number	001-14669
Entity Registrant Name	HELEN OF TROY LIMITED
Entity Incorporation, State or Country Code	D0
Entity Tax Identification Number	74-2692550
Entity Address, Address Line One	1 Helen of Troy Plaza
Entity Address, City or Town	El Paso
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79912
City Area Code	915
Local Phone Number	225-8000
Title of 12(b) Security	Common Shares, $0.10 par value per share
Trading Symbol	HELE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,813,316
Entity Central Index Key	0000916789
Current Fiscal Year End Date	--02-28
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Amendment Flag	false
Other Address
Entity Addresses [Line Items]
Entity Address, Address Line One	Clarendon House
Entity Address, Address Line Two	2 Church Street
Entity Address, City or Town	Hamilton
Entity Address, Country	BM

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	May 31, 2024	Feb. 29, 2024
Assets, current:
Cash and cash equivalents	$ 16,148	$ 18,501
Receivables, less allowances of $7,511 and $7,481	328,097	394,536
Inventory	444,749	395,995
Prepaid expenses and other current assets	30,590	27,012
Income taxes receivable	11,979	7,874
Total assets, current	831,563	843,918
Property and equipment, net of accumulated depreciation of $178,319 and $169,021	334,417	336,646
Goodwill	1,066,730	1,066,730
Other intangible assets, net of accumulated amortization of $191,403 and $186,882	532,378	536,696
Operating lease assets	36,887	35,962
Deferred tax assets, net	3,781	3,662
Other assets	15,195	15,008
Total assets	2,820,951	2,838,622
Liabilities, current:
Accounts payable	245,216	245,349
Accrued expenses and other current liabilities	163,561	181,391
Income taxes payable	11,867	17,821
Long-term debt, current maturities	7,031	6,250
Total liabilities, current	427,675	450,811
Long-term debt, excluding current maturities	741,346	659,421
Lease liabilities, non-current	38,241	37,262
Deferred tax liabilities, net	52,036	41,253
Other liabilities, non-current	12,153	12,433
Total liabilities	1,271,451	1,201,180
Commitments and contingencies
Stockholders' equity:
Cumulative preferred stock, non-voting, $1.00 par. Authorized 2,000,000 shares; none issued	0	0
Common stock, $0.10 par. Authorized 50,000,000 shares; 22,810,412 and 23,751,258 shares issued and outstanding	2,281	2,375
Additional paid in capital	350,200	348,739
Accumulated other comprehensive income	2,797	2,099
Retained earnings	1,194,222	1,284,229
Total stockholders' equity	1,549,500	1,637,442
Total liabilities and stockholders' equity	$ 2,820,951	$ 2,838,622

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	May 31, 2024	Feb. 29, 2024
Statement of Financial Position [Abstract]
Allowance on receivables	$ 7,511	$ 7,481
Property and equipment, accumulated depreciation	178,319	169,021
Other intangible assets, accumulated amortization	$ 191,403	$ 186,882
Cumulative preferred stock, nonvoting, par value (in dollars per share)	$ 1.00	$ 1.00
Cumulative preferred stock, non-voting, authorized shares (in shares)	2,000,000	2,000,000
Cumulative preferred stock, non-voting, issued shares (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, authorized shares (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	22,810,412	23,751,258
Common stock, shares outstanding (in shares)	22,810,412	23,751,258

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	May 31, 2024	May 31, 2023
Income Statement [Abstract]
Sales revenue, net	$ 416,847	$ 474,672
Cost of goods sold	213,768	259,041
Gross profit	203,079	215,631
Selling, general and administrative expense (“SG&A”)	170,481	167,635
Restructuring charges	1,835	7,355
Operating income	30,763	40,641
Non-operating income, net	100	137
Interest expense	12,543	14,052
Income before income tax	18,320	26,726
Income tax expense	12,116	4,145
Net income	$ 6,204	$ 22,581
Earnings per share (“EPS”):
Basic (in dollars per share)	$ 0.26	$ 0.94
Diluted (in dollars per share)	$ 0.26	$ 0.94
Weighted average shares used in computing EPS:
Basic (in shares)	23,524	24,049
Diluted (in shares)	23,633	24,134

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2024	May 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 6,204	$ 22,581
Other comprehensive income (loss), net of tax:
Cash flow hedge activity - interest rate swaps	925	(3,092)
Cash flow hedge activity - foreign currency contracts	(227)	(623)
Total other comprehensive income (loss), net of tax	698	(3,715)
Comprehensive income	$ 6,902	$ 18,866

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid in Capital	Accumulated Other Comprehensive Income	Retained Earnings
Beginning balance (in shares) at Feb. 28, 2023		23,994
Beginning balance at Feb. 28, 2023	$ 1,488,811	$ 2,399	$ 317,277	$ 4,947	$ 1,164,188
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,581				22,581
Other comprehensive loss, net of tax	(3,715)			(3,715)
Exercise of stock options (in shares)		5
Exercise of stock options	212	$ 1	211
Issuance and settlement of restricted stock (in shares)		120
Issuance and settlement of restricted stock	0	$ 12	(12)
Issuance of common stock related to stock purchase plan (in shares)		23
Issuance of common stock related to stock purchase plan	2,168	$ 2	2,166
Common stock repurchased and retired (in shares)		(45)
Common stock repurchased and retired	(4,446)	$ (4)	(4,442)
Share-based compensation	9,297		9,297
Ending balance (in shares) at May. 31, 2023		24,097
Ending balance at May. 31, 2023	1,514,908	$ 2,410	324,497	1,232	1,186,769
Beginning balance (in shares) at Feb. 29, 2024		23,751
Beginning balance at Feb. 29, 2024	1,637,442	$ 2,375	348,739	2,099	1,284,229
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,204				6,204
Other comprehensive loss, net of tax	698			698
Exercise of stock options (in shares)		6
Exercise of stock options	352	$ 1	351
Issuance and settlement of restricted stock (in shares)		71
Issuance and settlement of restricted stock	0	$ 7	(7)
Issuance of common stock related to stock purchase plan (in shares)		19
Issuance of common stock related to stock purchase plan	2,006	$ 2	2,004
Common stock repurchased and retired (in shares)		(1,037)
Common stock repurchased and retired	(103,035)	$ (104)	(6,720)		(96,211)
Share-based compensation	5,833		5,833
Ending balance (in shares) at May. 31, 2024		22,810
Ending balance at May. 31, 2024	$ 1,549,500	$ 2,281	$ 350,200	$ 2,797	$ 1,194,222

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2024	May 31, 2023
Cash provided by operating activities:
Net income	$ 6,204	$ 22,581
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,836	10,715
Amortization of financing costs	319	308
Non-cash operating lease expense	2,878	2,338
Provision for credit losses	88	3,389
Non-cash share-based compensation	5,833	9,297
Gain on the sale or disposal of property and equipment	(29)	(246)
Deferred income taxes and tax credits	10,445	3,897
Changes in operating capital:
Receivables	64,595	26,733
Inventory	(48,754)	21,572
Prepaid expenses and other current assets	(3,565)	(1,420)
Other assets and liabilities, net	327	(656)
Accounts payable	2,350	36,644
Accrued expenses and other current liabilities	(19,465)	(10,734)
Accrued income taxes	(9,742)	(3,362)
Net cash provided by operating activities	25,320	121,056
Cash used by investing activities:
Capital and intangible asset expenditures	(9,142)	(11,877)
Payments for purchases of U.S. Treasury Bills	(683)	0
Proceeds from the maturity of U.S. Treasury Bills	626	0
Proceeds from the sale of property and equipment	38	246
Net cash used by investing activities	(9,161)	(11,631)
Cash used by financing activities:
Proceeds from revolving loans	314,040	70,150
Repayment of revolving loans	(230,090)	(166,150)
Repayment of long-term debt	(1,563)	(1,563)
Payment of financing costs	(222)	0
Proceeds from share issuances under share-based compensation plans	2,358	2,380
Payments for repurchases of common stock	(103,035)	(4,446)
Net cash used by financing activities	(18,512)	(99,629)
Net (decrease) increase in cash and cash equivalents	(2,353)	9,796
Cash and cash equivalents, beginning balance	18,501	29,073
Cash and cash equivalents, ending balance	16,148	38,869
Supplemental non-cash investing activity:
Capital expenditures included in accounts payable and accrued expenses	$ 5,647	$ 2,579

Basis of Presentation and Related Information	3 Months Ended
Basis of Presentation and Related Information	May 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Related Information	Note 1 - Basis of Presentation and Related Information Corporate Overview The accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly our consolidated financial position as of May 31, 2024 and February 29, 2024, and the results of our consolidated operations for the interim periods presented. We follow the same accounting policies when preparing quarterly financial data as we use for preparing annual data. These statements should be read in conjunction with the consolidated financial statements and the notes included in our latest annual report on Form 10-K for the fiscal year ended February 29, 2024 (“Form 10-K”), and our other reports on file with the Securities and Exchange Commission (the “SEC”). When used in these notes, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries, which are all wholly-owned. We refer to our common shares, par value $0.10 per share, as “common stock.” References to “the FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to accounting principles generally accepted in the United States of America (the “U.S.”). References to “ASU” refer to the codification of GAAP in the Accounting Standards Updates issued by the FASB. References to “ASC” refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB. We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994. We are a leading global consumer products company offering creative products and solutions for our customers through a diversified portfolio of brands. Our portfolio of brands include OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith and Revlon, among others. As of May 31, 2024, we operated two reportable segments: Home & Outdoor and Beauty & Wellness. Our Home & Outdoor segment offers a broad range of outstanding world-class brands that help consumers enjoy everyday living inside their homes and outdoors. Our innovative products for home activities include food preparation and storage, cooking, cleaning, organization, and beverage service. Our outdoor performance range, on-the-go food storage, and beverageware includes lifestyle hydration products, coolers and food storage solutions, backpacks, and travel gear. The Beauty & Wellness segment provides consumers with a broad range of outstanding world-class brands for beauty and wellness. In Beauty, we deliver innovation through products such as hair styling appliances, grooming tools, and liquid and aerosol personal care products that help consumers look and feel more beautiful. In Wellness, we are there when you need us most with highly regarded humidifiers, thermometers, water and air purifiers, heaters, and fans. Our business is seasonal due to different calendar events, holidays and seasonal weather and illness patterns. Our fiscal reporting period ends on the last day in February. Historically, our highest sales volume and operating income occur in our third fiscal quarter ending November 30th. We purchase our products from unaffiliated manufacturers, most of which are located in China, Mexico, Vietnam and the U.S. During fiscal 2023, we initiated a global restructuring plan intended to expand operating margins through initiatives designed to improve efficiency and effectiveness and reduce costs (referred to as “Project Pegasus”). See Note 6 for additional information. Principles of Consolidation The accompanying condensed consolidated financial statements are prepared in accordance with GAAP and include all of our subsidiaries. Our condensed consolidated financial statements are prepared in U.S. Dollars. All intercompany balances and transactions are eliminated in consolidation. The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates.

New Accounting Pronouncements	3 Months Ended
New Accounting Pronouncements	May 31, 2024
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	Note 2 - New Accounting Pronouncements There have been no changes in the information provided in our Form 10-K.

Accrued Expenses and Other Current Liabilities

3 Months Ended

May 31, 2024

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Note 3 - Accrued Expenses and Other Current Liabilities

A summary of accrued expenses and other current liabilities was as follows:


(in thousands)	May 31, 2024		February 29, 2024
Accrued compensation, benefits and payroll taxes	$	17,620	$	36,572
Accrued sales discounts and allowances	40,485		37,851
Accrued sales returns	19,335		21,282
Accrued advertising	27,179		29,212
Other	58,942		56,474
Total accrued expenses and other current liabilities	$	163,561	$	181,391

Share-Based Compensation Plans

3 Months Ended

May 31, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation Plans

Note 4 - Share-Based Compensation Plans

We recorded share-based compensation expense in SG&A as follows:


	Three Months Ended May 31,
(in thousands)	2024		2023

Directors stock compensation	$	196	$	197
Service Condition Awards	2,568		3,320
Performance Condition Awards	1,047		2,023
Market Condition Awards	1,395		3,147
Employee stock purchase plan	627		610
Share-based compensation expense	5,833		9,297
Less: income tax benefits	(264)		(641)
Share-based compensation expense, net of income tax benefits	$	5,569	$	8,656

Unrecognized Share-Based Compensation Expense

Repurchases of Common Stock

3 Months Ended

May 31, 2024

Equity [Abstract]

Repurchases of Common Stock

Note 5 - Repurchases of Common Stock

In August 2021, our Board of Directors authorized the repurchase of up to $500 million of our outstanding common stock. The authorization became effective August 25, 2021, for a period of three years, and replaced our former repurchase authorization. As of May 31, 2024, our repurchase authorization allowed for the purchase of $245.4 million of common stock.

The following table summarizes our share repurchase activity for the periods shown:


	Three Months Ended May 31,
(in thousands, except share and per share data)	2024		2023
Common stock repurchased on the open market:
Number of shares	1,011,243		—
Aggregate value of shares	$	100,019	$	—
Average price per share	$	98.91	$	—

Common stock received in connection with share-based compensation:
Number of shares	25,372		44,632
Aggregate value of shares	$	3,016	$	4,446
Average price per share	$	118.85	$	99.61

Restructuring Plan

3 Months Ended

May 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring Plan

Note 6 - Restructuring Plan

As previously disclosed, we continue to have the following expectations regarding Project Pegasus charges:

•Total one-time pre-tax restructuring charges of approximately $50 million to $55 million over the duration of the plan, expected to be completed during fiscal 2025.

•Pre-tax restructuring charges represent primarily cash expenditures, which are expected to be substantially paid by the end of fiscal 2025.

We also continue to have the following expectations regarding Project Pegasus savings:

•Total profit improvements to be realized approximately 60% through reduced cost of goods sold and 40% through lower SG&A.

The following tables summarize restructuring charges recorded as a result of Project Pegasus for the periods presented:


	Three Months Ended May 31, 2024						Total Incurred Since Inception
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Severance and employee related costs	$	440	$	1,125	$	1,565	$	16,841
Professional fees	—		270		270		27,147
Contract termination	—		—		—		1,331
Other	—		—		—		2,590
Total restructuring charges	$	440	$	1,395	$	1,835	$	47,909


	Three Months Ended May 31, 2023
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Severance and employee related costs	$	484	$	408	$	892
Professional fees	2,269		3,357		5,626
Contract termination	—		688		688
Other	37		112		149
Total restructuring charges	$	2,790	$	4,565	$	7,355

The tables below present a rollforward of our accruals related to Project Pegasus, which are included in accounts payable and accrued expenses and other current liabilities:


(in thousands)	Balance at February 29, 2024		Charges		Payments		Balance at May 31, 2024
Severance and employee related costs	$	4,493	$	1,565	$	(2,975)	$	3,083
Professional fees	272		270		(24)		518
Contract termination	—		—		—		—
Other	—		—		—		—
Total	$	4,765	$	1,835	$	(2,999)	$	3,601


(in thousands)	Balance at February 28, 2023		Charges		Payments		Balance at May 31, 2023
Severance and employee related costs	$	3,173	$	892	$	(2,316)	$	1,749
Professional fees	3,201		5,626		(6,026)		2,801
Contract termination	160		688		(848)		—
Other	34		149		(183)		—
Total	$	6,568	$	7,355	$	(9,373)	$	4,550

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	May 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 7 - Commitments and Contingencies Legal Matters We are involved in various legal claims and proceedings in the normal course of operations. We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity, except as described below. On December 23, 2021, Brita LP filed a complaint against Kaz USA, Inc. and Helen of Troy Limited in the United States District Court for the Western District of Texas (the “Patent Litigation”), alleging patent infringement by the Company relating to its PUR gravity-fed water filtration systems. In the Patent Litigation, Brita LP seeks monetary damages and injunctive relief relating to the alleged infringement. Brita LP simultaneously filed a complaint with the United States International Trade Commission (“ITC”) against Kaz USA, Inc., Helen of Troy Limited and five other unrelated companies that sell water filtration systems (the “ITC Action”). The complaint in the ITC Action also alleged patent infringement by the Company with respect to a limited set of PUR gravity-fed water filtration systems. In the ITC Action, Brita LP requested the ITC to initiate an unfair import investigation relating to such filtration systems. This action sought injunctive relief to prevent entry of certain accused PUR products (and certain other products) into the U.S. and cessation of marketing and sales of existing inventory that is already in the U.S. On January 25, 2022, the ITC instituted the investigation requested by the ITC Action. Discovery closed in the ITC Action in May 2022, and approximately half of the originally identified PUR gravity-fed water filters were removed from the case and are no longer included in the ITC Action. In August 2022, the parties participated in the evidentiary hearing, with additional supplemental hearings in October 2022. On February 28, 2023, the ITC issued an Initial Determination in the ITC Action, tentatively ruling against the Company and the other unrelated respondents. The ITC has a guaranteed review process, and thus all respondents, including the Company, filed a petition with the ITC for a full review of the Initial Determination. On September 19, 2023, the ITC issued its Final Determination in the Company’s favor. The ITC determined there was no violation by the Company and terminated the investigation. Brita LP is appealing the ITC's decision to the Federal Circuit (“CAFC Appeal”) and filed its Notice of Appeal on October 24, 2023. The Company intervened in the CAFC Appeal, but as of the filing date of this Form 10-Q, no hearings have been scheduled. The Patent Litigation remains stayed for the time being. We cannot predict the outcome of these legal proceedings, the amount or range of any potential loss, when the proceedings will be resolved, or customer acceptance of any replacement water filter. Litigation is inherently unpredictable, and the resolution or disposition of these proceedings could, if adversely determined, have a material and adverse impact on our financial position and results of operations. Regulatory Matters During fiscal 2022 and 2023, we were in discussions with the U.S. Environmental Protection Agency (the “EPA”) regarding the compliance of packaging claims on certain of our products in the air and water filtration categories and a limited subset of humidifier products within the Beauty & Wellness segment that are sold in the U.S. The EPA did not raise any product quality, safety or performance issues. As a result of these packaging compliance discussions, we voluntarily implemented a temporary stop shipment action on the impacted products as we worked with the EPA towards an expedient resolution. We resumed normalized levels of shipping of the affected inventory during fiscal 2022 and we completed the repackaging and relabeling of our existing inventory of impacted products during fiscal 2023. Additionally, as a result of continuing dialogue with the EPA, we executed further repackaging and relabeling plans on certain additional humidifier products and certain additional air filtration products, which were also completed during fiscal 2023. Ongoing settlement discussions with the EPA related to this matter may result in the imposition of fines or penalties in the future. Such potential fines or penalties cannot be estimated. For additional information refer to Part I, Item 2., “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” including “EPA Compliance Costs”.

Long-Term Debt

3 Months Ended

May 31, 2024

Debt Disclosure [Abstract]

Long-Term Debt

Note 8 - Long-Term Debt

A summary of our long-term debt follows:


(in thousands)	May 31, 2024		February 29, 2024
Credit Agreement (1):
Revolving loans	$	505,900	$	421,950
Term loans	248,437		250,000
Total borrowings under Credit Agreement	754,337		671,950
Unamortized prepaid financing fees	(5,960)		(6,279)
Total long-term debt	748,377		665,671
Less: current maturities of long-term debt	(7,031)		(6,250)
Long-term debt, excluding current maturities	$	741,346	$	659,421

Capitalized Interest

Credit Agreement

Debt Covenants

As of May 31, 2024, we were in compliance with all covenants as defined under the terms of the Credit Agreement.

Fair Value

3 Months Ended

May 31, 2024

Fair Value Disclosures [Abstract]

Fair Value

Note 9 - Fair Value

Level 1:Quoted prices for identical assets or liabilities in active markets;

Level 3:Unobservable inputs that reflect the reporting entity’s own assumptions.

The following table presents the fair value of our financial assets and liabilities:


	Fair Value
(in thousands)	May 31, 2024		February 29, 2024
Assets:
Cash equivalents (money market accounts)	$	3,661	$	462
U.S. Treasury Bills	9,016		8,948
Interest rate swaps	3,712		2,504
Foreign currency derivatives	432		592
Total assets	$	16,821	$	12,506

Liabilities:


Foreign currency derivatives	505		386
Total liabilities	$	505	$	386

within Prepaid expenses and other current assets and Other assets, respectively, in our condensed consolidated balance sheets.

Financial Instruments and Risk Management

3 Months Ended

May 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments and Risk Management

Note 10 - Financial Instruments and Risk Management

Foreign Currency Risk

Interest Rate Risk

The following tables summarize the fair values of our derivative instruments as of the end of the periods presented:


(in thousands)	May 31, 2024
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities, Non- Current

Forward contracts - sell Euro	Cash flow	2/2025	€	29,000	$	249	$	—	$	87	$	—
Forward contracts - sell Canadian Dollars	Cash flow	2/2025	$	18,350	153		—		34		—
Forward contracts - sell Pounds	Cash flow	11/2025	£	21,750	16		—		375		2



Forward contracts - sell Norwegian Kroner	Cash flow	2/2025	kr	15,000	—		—		1		—
Interest rate swaps	Cash flow	2/2026	$	300,000	2,127		1,585		—		—
Subtotal					2,545		1,585		497		2

Derivatives not designated under hedge accounting


Forward contracts - sell Euro	(1)	6/2024	€	1,000	—		—		6		—
Forward contracts - buy Pounds	(1)	6/2024	£	700	14		—		—		—
Subtotal					14		—		6		—
Total fair value					$	2,559	$	1,585	$	503	$	2


(in thousands)	February 29, 2024
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities Non- Current

Forward contracts - sell Euro	Cash flow	2/2025	€	36,500	$	377	$	—	$	90	$	—
Forward contracts - sell Canadian Dollars	Cash flow	2/2025	$	20,750	151		—		57		—

Forward contracts - sell Pounds	Cash flow	2/2025	£	20,250	59		—		234		—


Forward contracts - sell Norwegian Kroner	Cash flow	8/2024	kr	5,000	5		—		—		—
Interest rate swaps	Cash flow	2/2026	$	500,000	1,314		1,190		—		—
Subtotal					1,906		1,190		381		—

Derivatives not designated under hedge accounting
Forward contracts - sell Euro	(1)	3/2024	€	430	—		—		3		—
Forward contracts - sell Pounds	(1)	3/2024	£	735	—		—		2		—
Subtotal					—		—		5		—
Total fair value					$	1,906	$	1,190	$	386	$	—

The pre-tax effects of derivative instruments designated as cash flow hedges were as follows for the periods presented:


	Three Months Ended May 31,
	Gain (Loss) Recognized in AOCI				Gain (Loss) Reclassified from AOCI into Income
(in thousands)	2024		2023		Location	2024		2023
Foreign currency contracts - cash flow hedges	$	(108)	$	(467)	Sales revenue, net	$	184	$	338
Interest rate swaps - cash flow hedges	2,292		(2,634)		Interest expense	1,084		1,407


Total	$	2,184	$	(3,101)		$	1,268	$	1,745

The pre-tax effects of derivative instruments not designated under hedge accounting were as follows for the periods presented:


	Gain (Loss) Recognized in Income
		Three Months Ended May 31,
(in thousands)	Location	2024		2023
Forward contracts	SG&A	$	22	$	(24)


Total		$	22	$	(24)

Counterparty Credit Risk

significant experience using such derivative instruments. We believe that the risk of incurring credit losses is remote.

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

May 31, 2024

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 11 - Accumulated Other Comprehensive Income (Loss)

The changes in AOCI by component and related tax effects for the periods presented were as follows:


(in thousands)	Interest Rate Swaps		Foreign Currency Contracts		Total
Balance at February 28, 2023	$	4,394	$	553	$	4,947
Other comprehensive loss before reclassification	(2,634)		(467)		(3,101)
Amounts reclassified out of AOCI	(1,407)		(338)		(1,745)
Tax effects	949		182		1,131
Other comprehensive loss	(3,092)		(623)		(3,715)
Balance at May 31, 2023	$	1,302	$	(70)	$	1,232

Balance at February 29, 2024	$	1,917	$	182	$	2,099
Other comprehensive income (loss) before reclassification	2,292		(108)		2,184
Amounts reclassified out of AOCI	(1,084)		(184)		(1,268)
Tax effects	(283)		65		(218)
Other comprehensive income (loss)	925		(227)		698
Balance at May 31, 2024	$	2,842	$	(45)	$	2,797

See Notes 9 and 10 for additional information regarding our cash flow hedges.

Segment and Geographic Information

3 Months Ended

May 31, 2024

Segment Reporting [Abstract]

Segment and Geographic Information

Note 12 - Segment and Geographic Information

The following tables summarize segment information for the periods presented:


	Three Months Ended May 31, 2024
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Sales revenue, net	$	198,459	$	218,388	$	416,847
Restructuring charges	440		1,395		1,835
Operating income	15,850		14,913		30,763
Capital and intangible asset expenditures	5,745		3,397		9,142
Depreciation and amortization	6,647		7,189		13,836


	Three Months Ended May 31, 2023
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Sales revenue, net	$	217,144	$	257,528	$	474,672
Restructuring charges	2,790		4,565		7,355

Operating income	22,116		18,525		40,641
Capital and intangible asset expenditures	10,960		917		11,877
Depreciation and amortization	4,402		6,313		10,715

The following table presents net sales revenue by geographic region, in U.S. Dollars:


	Three Months Ended May 31,
(in thousands)	2024				2023
Domestic sales revenue, net (1)	$	300,680	72.1	%	$	359,559	75.7	%
International sales revenue, net	116,167		27.9	%	115,113		24.3	%
Total sales revenue, net	$	416,847	100.0	%	$	474,672	100.0	%

(1)Domestic net sales revenue includes net sales revenue from the U.S. and Canada.

Income Taxes	3 Months Ended
Income Taxes	May 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Note 13 - Income Taxes We reorganized the Company in Bermuda in 1994 and many of our foreign subsidiaries are not directly or indirectly owned by a U.S. parent. As such, a large portion of our foreign income is not subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by foreign subsidiaries, resulting in proportionally higher earnings in jurisdictions with lower statutory tax rates, which decreases our overall effective tax rate. The taxable income earned in each jurisdiction, whether U.S. or foreign, is determined by the subsidiary's operating results and transfer pricing and tax regulations in the related jurisdictions. For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions and other items. The Organisation for Economic Co-operation and Development has introduced a framework to implement a global minimum corporate income tax of 15%, referred to as “Pillar Two.” Many aspects of Pillar Two are effective for tax years beginning after January 1, 2024, with certain remaining aspects to be effective for tax years beginning January 1, 2025 or later. Certain countries have adopted legislation to implement Pillar Two, and other countries are in the process of introducing legislation to implement Pillar Two. We will continue to assess the impact of Pillar Two and monitor developments in legislation, regulation, and interpretive guidance. In response to Pillar Two, on May 24, 2024, Barbados enacted a domestic corporate income tax rate of 9%, effective beginning with our fiscal year 2025. As a result, we incorporated this corporate income tax into our estimated annual effective tax rate increasing our income tax provision during the first quarter of fiscal 2025. In addition, we revalued our existing deferred tax liabilities subject to the Barbados legislation, which resulted in a discrete tax charge of $6.0 million during the first quarter of fiscal 2025. Additionally, Barbados enacted a domestic minimum top-up tax (“DMTT”) of 15% which applies to Barbados businesses that are part of multinational enterprise groups with annual revenue of €750 million or more and is effective beginning with our fiscal year 2026. We will continue to monitor and evaluate impacts as further regulatory guidance becomes available. For the three months ended May 31, 2024, income tax expense as a percentage of income before income tax was 66.1% compared to 15.5% for the same period last year. The year-over-year increase in the effective tax rate is primarily due to the Barbados tax legislation enacted during the first quarter of fiscal 2025, which resulted in a discrete tax charge of $6.0 million to revalue deferred tax liabilities and an increase in our income tax expense due to the change to our estimated annual effective tax rate arising from the legislation, partially offset by shifts in the mix of income in our various tax jurisdictions.

Earnings Per Share

3 Months Ended

May 31, 2024

Earnings Per Share [Abstract]

Earnings Per Share

Note 14 - Earnings Per Share

The following table presents our weighted average basic and diluted shares outstanding for the periods shown:


	Three Months Ended May 31,
(in thousands)	2024	2023
Weighted average shares outstanding, basic	23,524	24,049
Incremental shares from share-based compensation arrangements	109	85
Weighted average shares outstanding, diluted	23,633	24,134



Anti-dilutive securities	125	156

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	May 31, 2024	May 31, 2023
Pay vs Performance Disclosure
Net income	$ 6,204	$ 22,581

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	May 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Related Information (Policies)	3 Months Ended
	May 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements are prepared in accordance with GAAP and include all of our subsidiaries. Our condensed consolidated financial statements are prepared in U.S. Dollars. All intercompany balances and transactions are eliminated in consolidation. The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates.

Accrued Expenses and Other Current Liabilities (Tables)

3 Months Ended

May 31, 2024

Payables and Accruals [Abstract]

Schedule of accrued expenses and other current liabilities

A summary of accrued expenses and other current liabilities was as follows:


(in thousands)	May 31, 2024		February 29, 2024
Accrued compensation, benefits and payroll taxes	$	17,620	$	36,572
Accrued sales discounts and allowances	40,485		37,851
Accrued sales returns	19,335		21,282
Accrued advertising	27,179		29,212
Other	58,942		56,474
Total accrued expenses and other current liabilities	$	163,561	$	181,391

Share-Based Compensation Plans (Tables)

3 Months Ended

May 31, 2024

Share-Based Payment Arrangement [Abstract]

Share-based compensation expense in SG&A

We recorded share-based compensation expense in SG&A as follows:


	Three Months Ended May 31,
(in thousands)	2024		2023

Directors stock compensation	$	196	$	197
Service Condition Awards	2,568		3,320
Performance Condition Awards	1,047		2,023
Market Condition Awards	1,395		3,147
Employee stock purchase plan	627		610
Share-based compensation expense	5,833		9,297
Less: income tax benefits	(264)		(641)
Share-based compensation expense, net of income tax benefits	$	5,569	$	8,656

Repurchases of Common Stock (Tables)

3 Months Ended

May 31, 2024

Equity [Abstract]

Summary of share repurchase activity

The following table summarizes our share repurchase activity for the periods shown:


	Three Months Ended May 31,
(in thousands, except share and per share data)	2024		2023
Common stock repurchased on the open market:
Number of shares	1,011,243		—
Aggregate value of shares	$	100,019	$	—
Average price per share	$	98.91	$	—

Common stock received in connection with share-based compensation:
Number of shares	25,372		44,632
Aggregate value of shares	$	3,016	$	4,446
Average price per share	$	118.85	$	99.61

Restructuring Plan (Tables)

3 Months Ended

May 31, 2024

Restructuring and Related Activities [Abstract]

Summary of restructuring charges recorded

The following tables summarize restructuring charges recorded as a result of Project Pegasus for the periods presented:


	Three Months Ended May 31, 2024						Total Incurred Since Inception
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Severance and employee related costs	$	440	$	1,125	$	1,565	$	16,841
Professional fees	—		270		270		27,147
Contract termination	—		—		—		1,331
Other	—		—		—		2,590
Total restructuring charges	$	440	$	1,395	$	1,835	$	47,909


	Three Months Ended May 31, 2023
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Severance and employee related costs	$	484	$	408	$	892
Professional fees	2,269		3,357		5,626
Contract termination	—		688		688
Other	37		112		149
Total restructuring charges	$	2,790	$	4,565	$	7,355

Rollforward of restructuring reserve

The tables below present a rollforward of our accruals related to Project Pegasus, which are included in accounts payable and accrued expenses and other current liabilities:


(in thousands)	Balance at February 29, 2024		Charges		Payments		Balance at May 31, 2024
Severance and employee related costs	$	4,493	$	1,565	$	(2,975)	$	3,083
Professional fees	272		270		(24)		518
Contract termination	—		—		—		—
Other	—		—		—		—
Total	$	4,765	$	1,835	$	(2,999)	$	3,601


(in thousands)	Balance at February 28, 2023		Charges		Payments		Balance at May 31, 2023
Severance and employee related costs	$	3,173	$	892	$	(2,316)	$	1,749
Professional fees	3,201		5,626		(6,026)		2,801
Contract termination	160		688		(848)		—
Other	34		149		(183)		—
Total	$	6,568	$	7,355	$	(9,373)	$	4,550

Long-Term Debt (Tables)

3 Months Ended

May 31, 2024

Debt Disclosure [Abstract]

Summary of long-term debt

A summary of our long-term debt follows:


(in thousands)	May 31, 2024		February 29, 2024
Credit Agreement (1):
Revolving loans	$	505,900	$	421,950
Term loans	248,437		250,000
Total borrowings under Credit Agreement	754,337		671,950
Unamortized prepaid financing fees	(5,960)		(6,279)
Total long-term debt	748,377		665,671
Less: current maturities of long-term debt	(7,031)		(6,250)
Long-term debt, excluding current maturities	$	741,346	$	659,421

Fair Value (Tables)

3 Months Ended

May 31, 2024

Fair Value Disclosures [Abstract]

Schedule of carrying value and fair value of financial assets and liabilities recorded at fair value and measured on a recurring basis and classified as level 2

The following table presents the fair value of our financial assets and liabilities:


	Fair Value
(in thousands)	May 31, 2024		February 29, 2024
Assets:
Cash equivalents (money market accounts)	$	3,661	$	462
U.S. Treasury Bills	9,016		8,948
Interest rate swaps	3,712		2,504
Foreign currency derivatives	432		592
Total assets	$	16,821	$	12,506

Liabilities:


Foreign currency derivatives	505		386
Total liabilities	$	505	$	386

Financial Instruments and Risk Management (Tables)

3 Months Ended

May 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair values of derivative instruments

The following tables summarize the fair values of our derivative instruments as of the end of the periods presented:


(in thousands)	May 31, 2024
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities, Non- Current

Forward contracts - sell Euro	Cash flow	2/2025	€	29,000	$	249	$	—	$	87	$	—
Forward contracts - sell Canadian Dollars	Cash flow	2/2025	$	18,350	153		—		34		—
Forward contracts - sell Pounds	Cash flow	11/2025	£	21,750	16		—		375		2



Forward contracts - sell Norwegian Kroner	Cash flow	2/2025	kr	15,000	—		—		1		—
Interest rate swaps	Cash flow	2/2026	$	300,000	2,127		1,585		—		—
Subtotal					2,545		1,585		497		2

Derivatives not designated under hedge accounting


Forward contracts - sell Euro	(1)	6/2024	€	1,000	—		—		6		—
Forward contracts - buy Pounds	(1)	6/2024	£	700	14		—		—		—
Subtotal					14		—		6		—
Total fair value					$	2,559	$	1,585	$	503	$	2


(in thousands)	February 29, 2024
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities Non- Current

Forward contracts - sell Euro	Cash flow	2/2025	€	36,500	$	377	$	—	$	90	$	—
Forward contracts - sell Canadian Dollars	Cash flow	2/2025	$	20,750	151		—		57		—

Forward contracts - sell Pounds	Cash flow	2/2025	£	20,250	59		—		234		—


Forward contracts - sell Norwegian Kroner	Cash flow	8/2024	kr	5,000	5		—		—		—
Interest rate swaps	Cash flow	2/2026	$	500,000	1,314		1,190		—		—
Subtotal					1,906		1,190		381		—

Derivatives not designated under hedge accounting
Forward contracts - sell Euro	(1)	3/2024	€	430	—		—		3		—
Forward contracts - sell Pounds	(1)	3/2024	£	735	—		—		2		—
Subtotal					—		—		5		—
Total fair value					$	1,906	$	1,190	$	386	$	—

Schedule of pre-tax effect of derivative instruments designated as hedges

The pre-tax effects of derivative instruments designated as cash flow hedges were as follows for the periods presented:


	Three Months Ended May 31,
	Gain (Loss) Recognized in AOCI				Gain (Loss) Reclassified from AOCI into Income
(in thousands)	2024		2023		Location	2024		2023
Foreign currency contracts - cash flow hedges	$	(108)	$	(467)	Sales revenue, net	$	184	$	338
Interest rate swaps - cash flow hedges	2,292		(2,634)		Interest expense	1,084		1,407


Total	$	2,184	$	(3,101)		$	1,268	$	1,745

Schedule of pre-tax effect of derivative instruments not designated as hedges

The pre-tax effects of derivative instruments not designated under hedge accounting were as follows for the periods presented:


	Gain (Loss) Recognized in Income
		Three Months Ended May 31,
(in thousands)	Location	2024		2023
Forward contracts	SG&A	$	22	$	(24)


Total		$	22	$	(24)

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

May 31, 2024

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]

Summary of changes in accumulated other comprehensive income (loss)

The changes in AOCI by component and related tax effects for the periods presented were as follows:


(in thousands)	Interest Rate Swaps		Foreign Currency Contracts		Total
Balance at February 28, 2023	$	4,394	$	553	$	4,947
Other comprehensive loss before reclassification	(2,634)		(467)		(3,101)
Amounts reclassified out of AOCI	(1,407)		(338)		(1,745)
Tax effects	949		182		1,131
Other comprehensive loss	(3,092)		(623)		(3,715)
Balance at May 31, 2023	$	1,302	$	(70)	$	1,232

Balance at February 29, 2024	$	1,917	$	182	$	2,099
Other comprehensive income (loss) before reclassification	2,292		(108)		2,184
Amounts reclassified out of AOCI	(1,084)		(184)		(1,268)
Tax effects	(283)		65		(218)
Other comprehensive income (loss)	925		(227)		698
Balance at May 31, 2024	$	2,842	$	(45)	$	2,797

Segment and Geographic Information (Tables)

3 Months Ended

May 31, 2024

Segment Reporting [Abstract]

Schedule of segment information

The following tables summarize segment information for the periods presented:


	Three Months Ended May 31, 2024
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Sales revenue, net	$	198,459	$	218,388	$	416,847
Restructuring charges	440		1,395		1,835
Operating income	15,850		14,913		30,763
Capital and intangible asset expenditures	5,745		3,397		9,142
Depreciation and amortization	6,647		7,189		13,836


	Three Months Ended May 31, 2023
(in thousands)	Home & Outdoor		Beauty & Wellness		Total
Sales revenue, net	$	217,144	$	257,528	$	474,672
Restructuring charges	2,790		4,565		7,355

Operating income	22,116		18,525		40,641
Capital and intangible asset expenditures	10,960		917		11,877
Depreciation and amortization	4,402		6,313		10,715

The following table presents net sales revenue by geographic region, in U.S. Dollars:


	Three Months Ended May 31,
(in thousands)	2024				2023
Domestic sales revenue, net (1)	$	300,680	72.1	%	$	359,559	75.7	%
International sales revenue, net	116,167		27.9	%	115,113		24.3	%
Total sales revenue, net	$	416,847	100.0	%	$	474,672	100.0	%

(1)Domestic net sales revenue includes net sales revenue from the U.S. and Canada.

Earnings Per Share (Tables)

3 Months Ended

May 31, 2024

Earnings Per Share [Abstract]

Schedule of components of basic and diluted shares

The following table presents our weighted average basic and diluted shares outstanding for the periods shown:


	Three Months Ended May 31,
(in thousands)	2024	2023
Weighted average shares outstanding, basic	23,524	24,049
Incremental shares from share-based compensation arrangements	109	85
Weighted average shares outstanding, diluted	23,633	24,134



Anti-dilutive securities	125	156

Basis of Presentation and Related Information (Details)	3 Months Ended
Basis of Presentation and Related Information (Details)	May 31, 2024 segment $ / shares	Feb. 29, 2024 $ / shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Common shares, par value (in dollars per share) \| $ / shares	$ 0.10	$ 0.10
Number of segments \| segment	2

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	May 31, 2024	Feb. 29, 2024
Payables and Accruals [Abstract]
Accrued compensation, benefits and payroll taxes	$ 17,620	$ 36,572
Accrued sales discounts and allowances	40,485	37,851
Accrued sales returns	19,335	21,282
Accrued advertising	27,179	29,212
Other	58,942	56,474
Accrued expenses and other current liabilities	$ 163,561	$ 181,391

Share-Based Compensation Plans - Narrative (Details) $ / shares in Units, $ in Millions	3 Months Ended
	May 31, 2024 USD ($) $ / shares shares
Share-based compensation plans
Expected recognition period for unrecognized share-based compensation	2 years 6 months
Target achievement for performance condition awards, as a percentage	0.00%
Restricted Stock
Share-based compensation plans
Number of awards granted (in shares)	157,797
Unrecognized share-based compensation \| $	$ 33.5
Service Condition Awards
Share-based compensation plans
Number of awards granted (in shares)	94,900
Grant date fair value of shares granted in period (in dollars per share) \| $ / shares	$ 124.37
Market Condition Awards
Share-based compensation plans
Number of awards granted (in shares)	63,211
Grant date fair value of shares granted in period (in dollars per share) \| $ / shares	$ 91.19
Performance Condition Awards
Share-based compensation plans
Number of awards granted (in shares)	94,586
Grant date fair value of shares granted in period (in dollars per share) \| $ / shares	$ 124.37

Share-Based Compensation Plans - Share-Based Compensation Expense in SG&A (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2024	May 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense, net of income tax benefits	$ 5,569	$ 8,656
SG&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	5,833	9,297
Less: income tax benefits	(264)	(641)
Service Condition Awards \| SG&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	2,568	3,320
Performance Condition Awards \| SG&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,047	2,023
Market Condition Awards \| SG&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,395	3,147
Employee stock purchase plan \| SG&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	627	610
Directors stock compensation \| SG&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 196	$ 197

Repurchases of Common Stock - Narrative (Details) - USD ($)	Aug. 25, 2021	May 31, 2024	Aug. 31, 2021
Equity [Abstract]
Amount of shares authorized for purchase			$ 500,000,000
Period for stock repurchase	3 years
Remaining share repurchase amount		$ 245,400,000

Repurchases of Common Stock - Summary of Share Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	May 31, 2024	May 31, 2023
Repurchase of common stock
Aggregate value of shares	$ 103,035	$ 4,446
Stock Compensation Plan
Repurchase of common stock
Number of shares (in shares)	25,372	44,632
Aggregate value of shares	$ 3,016	$ 4,446
Average price per share (in dollars per share)	$ 118.85	$ 99.61
Open Market
Repurchase of common stock
Number of shares (in shares)	1,011,243	0
Aggregate value of shares	$ 100,019	$ 0
Average price per share (in dollars per share)	$ 98.91	$ 0

Restructuring Plan - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		24 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	Feb. 29, 2024	Aug. 31, 2023
Restructuring Plan
Restructuring charges	$ 1,835	$ 7,355
Project Pegasus
Restructuring Plan
Estimated percentage of workforce reduction				10.00%
Estimated percentage reduction in cost of goods sold	60.00%
Estimated percentage reduction in SG&A expenses	40.00%
Restructuring charges	$ 1,835	7,355	$ 47,909
Project Pegasus \| Home & Outdoor
Restructuring Plan
Restructuring charges	440	2,790
Project Pegasus \| Beauty & Wellness
Restructuring Plan
Restructuring charges	1,395	4,565
Project Pegasus \| Severance and employee related costs
Restructuring Plan
Restructuring charges	1,565	892
Project Pegasus \| Professional fees
Restructuring Plan
Expected restructuring costs					$ 28,000
Restructuring charges	270	5,626
Project Pegasus \| Contract termination
Restructuring Plan
Restructuring charges	0	688
Project Pegasus \| Other
Restructuring Plan
Restructuring charges	$ 0	$ 149
Project Pegasus \| Fiscal 2024
Restructuring Plan
Estimated percentage of savings recognized	25.00%
Project Pegasus \| Fiscal 2025
Restructuring Plan
Estimated percentage of savings recognized	35.00%
Project Pegasus \| Fiscal 2026
Restructuring Plan
Estimated percentage of savings recognized	25.00%
Project Pegasus \| Fiscal 2027
Restructuring Plan
Estimated percentage of savings recognized	15.00%
Project Pegasus \| Minimum
Restructuring Plan
Expected restructuring costs					50,000
Annualized profit improvements	$ 75,000
Project Pegasus \| Minimum \| Home & Outdoor
Restructuring Plan
Expected restructuring costs					16,000
Project Pegasus \| Minimum \| Beauty & Wellness
Restructuring Plan
Expected restructuring costs					34,000
Project Pegasus \| Minimum \| Severance and employee related costs
Restructuring Plan
Expected restructuring costs					15,000
Project Pegasus \| Minimum \| Contract termination
Restructuring Plan
Expected restructuring costs					3,000
Project Pegasus \| Maximum
Restructuring Plan
Expected restructuring costs					55,000
Annualized profit improvements	$ 85,000
Project Pegasus \| Maximum \| Home & Outdoor
Restructuring Plan
Expected restructuring costs					17,000
Project Pegasus \| Maximum \| Beauty & Wellness
Restructuring Plan
Expected restructuring costs					38,000
Project Pegasus \| Maximum \| Severance and employee related costs
Restructuring Plan
Expected restructuring costs					19,000
Project Pegasus \| Maximum \| Contract termination
Restructuring Plan
Expected restructuring costs					4,000
Project Pegasus \| Maximum \| Other
Restructuring Plan
Expected restructuring costs					$ 4,000

Restructuring Plan - Restructuring Charges to Date (Details) - USD ($) $ in Thousands	3 Months Ended		24 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024
Restructuring Plan
Total restructuring charges	$ 1,835	$ 7,355
Project Pegasus
Restructuring Plan
Severance and employee related costs	1,565	892	$ 16,841
Professional fees	270	5,626	27,147
Contract termination	0	688	1,331
Other	0	149	2,590
Total restructuring charges	1,835	7,355	$ 47,909
Home & Outdoor \| Project Pegasus
Restructuring Plan
Severance and employee related costs	440	484
Professional fees	0	2,269
Contract termination	0	0
Other	0	37
Total restructuring charges	440	2,790
Beauty & Wellness \| Project Pegasus
Restructuring Plan
Severance and employee related costs	1,125	408
Professional fees	270	3,357
Contract termination	0	688
Other	0	112
Total restructuring charges	$ 1,395	$ 4,565

Restructuring Plan - Reserve Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended		24 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024
Restructuring Reserve [Roll Forward]
Charges	$ 1,835	$ 7,355
Project Pegasus
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning balance	4,765	6,568
Charges	1,835	7,355	$ 47,909
Payments	(2,999)	(9,373)
Restructuring liability, ending balance	3,601	4,550	3,601
Severance and employee related costs \| Project Pegasus
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning balance	4,493	3,173
Charges	1,565	892
Payments	(2,975)	(2,316)
Restructuring liability, ending balance	3,083	1,749	3,083
Professional fees \| Project Pegasus
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning balance	272	3,201
Charges	270	5,626
Payments	(24)	(6,026)
Restructuring liability, ending balance	518	2,801	518
Contract termination \| Project Pegasus
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning balance	0	160
Charges	0	688
Payments	0	(848)
Restructuring liability, ending balance	0	0	0
Other \| Project Pegasus
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning balance	0	34
Charges	0	149
Payments	0	(183)
Restructuring liability, ending balance	$ 0	$ 0	$ 0

Commitments and Contingencies (Details)	Dec. 23, 2021 renewal
Commitments and Contingencies Disclosure [Abstract]
Number of other companies named in litigation	5

Long-Term Debt - Schedule (Details) - USD ($) $ in Thousands	May 31, 2024	Feb. 29, 2024
Long-term debt
Unamortized prepaid financing fees	$ (5,960)	$ (6,279)
Total long-term debt	748,377	665,671
Less: current maturities of long-term debt	(7,031)	(6,250)
Long-term debt, excluding current maturities	$ 741,346	$ 659,421
Line of credit
Long-term debt
Weighted average effective interest rate	6.40%	6.00%
Line of credit \| Credit Agreement
Long-term debt
Aggregate principal balance	$ 754,337	$ 671,950
Line of credit \| Credit Agreement \| Revolving loans
Long-term debt
Aggregate principal balance	505,900	421,950
Line of credit \| Credit Agreement \| Term loans
Long-term debt
Aggregate principal balance	$ 248,437	$ 250,000

Long-Term Debt - Narrative (Details) $ in Thousands		3 Months Ended
Long-Term Debt - Narrative (Details) $ in Thousands	Feb. 15, 2024 USD ($)	May 31, 2024 USD ($)	May 31, 2023 USD ($)	Feb. 29, 2024 USD ($)
Debt Instrument [Line Items]
Interest costs incurred		$ 12,500	$ 14,900
Interest costs capitalized		0	$ 900
Maximum net leverage ratio	3.25
Term loans
Debt Instrument [Line Items]
Aggregate principal amount	$ 250,000
Revolving loans \| Credit Agreement
Debt Instrument [Line Items]
Maximum revolving commitment	1,500,000
Line of credit
Debt Instrument [Line Items]
Fixed rate debt		300,000		$ 500,000
Maximum additional debt allowed under debt covenants		336,900
Maximum additional debt allowed in the event a qualified acquisition is consummated		478,500
Line of credit \| Credit Agreement
Debt Instrument [Line Items]
Maximum allowable increase due to accordion feature	$ 300,000
Line of credit \| Credit Agreement \| Minimum \| Base rate \| Variable Rate Component One
Debt Instrument [Line Items]
Margin (as a percent)	0.00%
Line of credit \| Credit Agreement \| Minimum \| SOFR \| Variable Rate Component Two
Debt Instrument [Line Items]
Margin (as a percent)	1.00%
Line of credit \| Credit Agreement \| Maximum \| Base rate \| Variable Rate Component One
Debt Instrument [Line Items]
Margin (as a percent)	1.125%
Line of credit \| Credit Agreement \| Maximum \| SOFR \| Variable Rate Component Two
Debt Instrument [Line Items]
Margin (as a percent)	2.125%
Line of credit \| Revolving loans \| Credit Agreement
Debt Instrument [Line Items]
Maximum revolving commitment	$ 1,000,000
Proceeds from revolving credit facility	457,500
Fixed rate debt		300,000		$ 500,000
Amount available for borrowings		478,500
Line of credit \| Letter of credit
Debt Instrument [Line Items]
Amount outstanding, letters of credit		$ 15,600
Line of credit \| Letter of credit \| Credit Agreement
Debt Instrument [Line Items]
Maximum revolving commitment	50,000
Line of credit \| Term loans \| Credit Agreement
Debt Instrument [Line Items]
Proceeds from term loan facility	$ 250,000
Line of credit \| Term loans \| Credit Agreement \| Through February 28, 2025
Debt Instrument [Line Items]
Percent of term loans due quarterly	0.625%
Line of credit \| Term loans \| Credit Agreement \| Through February 28, 2026
Debt Instrument [Line Items]
Percent of term loans due quarterly	0.9375%
Line of credit \| Term loans \| Credit Agreement \| After February 28th, 2026
Debt Instrument [Line Items]
Percent of term loans due quarterly	1.25%
Line of credit \| Delayed Draw Term Loan (DDTL) \| Credit Agreement
Debt Instrument [Line Items]
Aggregate principal amount	$ 250,000

Fair Value - Summary of Financial Assets and Liabilities (Details) - Recurring - Fair Values - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands	May 31, 2024	Feb. 29, 2024
Assets:
Cash equivalents (money market accounts)	$ 3,661	$ 462
Total assets	16,821	12,506
Liabilities:
Total liabilities	505	386
Interest rate swaps
Assets:
Derivative assets	3,712	2,504
Foreign currency derivatives
Assets:
Derivative assets	432	592
Liabilities:
Derivative liabilities	505	386
U.S. Treasury Bills
Assets:
U.S. Treasury Bills	$ 9,016	$ 8,948

Fair Value - Narrative (Details) - U.S. Treasury Bills - USD ($) $ in Millions	3 Months Ended
	May 31, 2024	Feb. 29, 2024
Fair Value
Unrealized loss on US Treasury bills	$ 0.1
Minimum
Fair Value
Term of US treasury bills held to maturity (less than one to five years)	1 year
Maximum
Fair Value
Term of US treasury bills held to maturity (less than one to five years)	5 years
Prepaid Expenses and Other Current Assets
Fair Value
US treasury bills, carrying value, current	$ 2.5	$ 2.5
Other Assets
Fair Value
US treasury bills, carrying value, non-current	$ 6.6	$ 6.6

Financial Instruments and Risk Management - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2024	May 31, 2023	Feb. 29, 2024
Foreign currency derivatives \| Cash flow hedges
Foreign Currency Risk and Currency Exchange Uncertainties
Net gain reported in AOCI to be reclassified	$ (2,000)
Period of reclassification to AOCI	12 months
Credit agreement
Foreign Currency Risk and Currency Exchange Uncertainties
Fixed rate debt	$ 300,000		$ 500,000
Credit agreement \| Credit Agreement
Foreign Currency Risk and Currency Exchange Uncertainties
Aggregate principal balance	754,337		$ 671,950
SG&A
Foreign Currency Risk and Currency Exchange Uncertainties
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps		$ 400
Income Tax Expense
Foreign Currency Risk and Currency Exchange Uncertainties
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps	$ 100	$ 200
Net sales revenue \| Geographic concentration \| International operations - transactions denominated in foreign currencies
Foreign Currency Risk and Currency Exchange Uncertainties
Concentration risk percentage	16.00%	15.00%

Financial Instruments and Risk Management - Derivative FV (Details) € in Thousands, £ in Thousands, kr in Thousands, $ in Thousands, $ in Thousands	May 31, 2024 EUR (€)	May 31, 2024 USD ($)	May 31, 2024 CAD ($)	May 31, 2024 GBP (£)	May 31, 2024 NOK (kr)	Feb. 29, 2024 EUR (€)	Feb. 29, 2024 USD ($)	Feb. 29, 2024 CAD ($)	Feb. 29, 2024 GBP (£)	Feb. 29, 2024 NOK (kr)
Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		$ 2,559					$ 1,906
Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		1,585					1,190
Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		503					386
Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		2					0
Derivatives designated as hedging instruments \| Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		2,545					1,906
Derivatives designated as hedging instruments \| Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		1,585					1,190
Derivatives designated as hedging instruments \| Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		497					381
Derivatives designated as hedging instruments \| Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		2					0
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell
Fair values of derivative instruments in the consolidated balance sheet
Notional Amount			$ 18,350	£ 21,750	kr 15,000	€ 36,500		$ 20,750	£ 20,250	kr 5,000
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Euros
Fair values of derivative instruments in the consolidated balance sheet
Notional Amount \| €	€ 29,000
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Euros \| Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		249					377
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Euros \| Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		0					0
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Euros \| Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		87					90
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Euros \| Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		0					0
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Canadian Dollars \| Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		153					151
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Canadian Dollars \| Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		0					0
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Canadian Dollars \| Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		34					57
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Canadian Dollars \| Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		0					0
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Pounds \| Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		16					59
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Pounds \| Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		0					0
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Pounds \| Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		375					234
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Pounds \| Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		2					0
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Norwegian Kroner \| Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		0					5
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Norwegian Kroner \| Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		0					0
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Norwegian Kroner \| Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		1					0
Derivatives designated as hedging instruments \| Foreign currency derivatives \| Sell \| Norwegian Kroner \| Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		0					0
Derivatives designated as hedging instruments \| Interest rate swaps
Fair values of derivative instruments in the consolidated balance sheet
Notional Amount		300,000					500,000
Derivatives designated as hedging instruments \| Interest rate swaps \| Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		2,127					1,314
Derivatives designated as hedging instruments \| Interest rate swaps \| Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		1,585					1,190
Derivatives designated as hedging instruments \| Interest rate swaps \| Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		0					0
Derivatives designated as hedging instruments \| Interest rate swaps \| Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		0					0
Derivatives not designated under hedge accounting \| Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		14					0
Derivatives not designated under hedge accounting \| Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		0					0
Derivatives not designated under hedge accounting \| Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		6					5
Derivatives not designated under hedge accounting \| Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		0					0
Derivatives not designated under hedge accounting \| Foreign currency derivatives \| Euros \| Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets							0
Derivatives not designated under hedge accounting \| Foreign currency derivatives \| Euros \| Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets							0
Derivatives not designated under hedge accounting \| Foreign currency derivatives \| Euros \| Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities							3
Derivatives not designated under hedge accounting \| Foreign currency derivatives \| Euros \| Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities							0
Derivatives not designated under hedge accounting \| Foreign currency derivatives \| Pounds \| Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets							0
Derivatives not designated under hedge accounting \| Foreign currency derivatives \| Pounds \| Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets							0
Derivatives not designated under hedge accounting \| Foreign currency derivatives \| Pounds \| Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities							2
Derivatives not designated under hedge accounting \| Foreign currency derivatives \| Pounds \| Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities							$ 0
Derivatives not designated under hedge accounting \| Cross currency debt swaps
Fair values of derivative instruments in the consolidated balance sheet
Notional Amount	€ 1,000			£ 700		€ 430			£ 735
Derivatives not designated under hedge accounting \| Cross currency debt swaps \| Euros \| Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		0
Derivatives not designated under hedge accounting \| Cross currency debt swaps \| Euros \| Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		0
Derivatives not designated under hedge accounting \| Cross currency debt swaps \| Euros \| Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		6
Derivatives not designated under hedge accounting \| Cross currency debt swaps \| Euros \| Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		0
Derivatives not designated under hedge accounting \| Cross currency debt swaps \| Pounds \| Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		14
Derivatives not designated under hedge accounting \| Cross currency debt swaps \| Pounds \| Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets		0
Derivatives not designated under hedge accounting \| Cross currency debt swaps \| Pounds \| Accrued Expenses and Other Current Liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		0
Derivatives not designated under hedge accounting \| Cross currency debt swaps \| Pounds \| Other Liabilities, Non- Current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities		$ 0

Financial Instruments and Risk Management - Derivative Tax Effect (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2024	May 31, 2023
Pre-tax effect of derivative instruments
Gain (Loss) Recognized in AOCI	$ 2,184	$ (3,101)
Gain (Loss) Reclassified from AOCI into Income	1,268	1,745
Gain (Loss) Recognized in Income	22	(24)
Foreign currency derivatives \| Cash flow hedges
Pre-tax effect of derivative instruments
Gain (Loss) Recognized in AOCI	(108)	(467)
Foreign currency derivatives \| Cash flow hedges \| SG&A
Pre-tax effect of derivative instruments
Gain (Loss) Reclassified from AOCI into Income	184	338
Interest rate swaps \| Cash flow hedges
Pre-tax effect of derivative instruments
Gain (Loss) Recognized in AOCI	2,292	(2,634)
Interest rate swaps \| Cash flow hedges \| Interest expense
Pre-tax effect of derivative instruments
Gain (Loss) Reclassified from AOCI into Income	1,084	1,407
Forward contracts \| SG&A
Pre-tax effect of derivative instruments
Gain (Loss) Recognized in Income	$ 22	$ (24)

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2024	May 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 1,637,442	$ 1,488,811
Other comprehensive income (loss) before reclassification	2,184	(3,101)
Amounts reclassified out of AOCI	(1,268)	(1,745)
Tax effects	(218)	1,131
Total other comprehensive income (loss), net of tax	698	(3,715)
Ending balance	1,549,500	1,514,908
Interest Rate Swaps
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	1,917	4,394
Other comprehensive income (loss) before reclassification	2,292	(2,634)
Amounts reclassified out of AOCI	(1,084)	(1,407)
Tax effects	(283)	949
Total other comprehensive income (loss), net of tax	925	(3,092)
Ending balance	2,842	1,302
Foreign Currency Contracts
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	182	553
Other comprehensive income (loss) before reclassification	(108)	(467)
Amounts reclassified out of AOCI	(184)	(338)
Tax effects	65	182
Total other comprehensive income (loss), net of tax	(227)	(623)
Ending balance	(45)	(70)
Total
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	2,099	4,947
Total other comprehensive income (loss), net of tax	698	(3,715)
Ending balance	$ 2,797	$ 1,232

Segment and Geographic Information - Segment Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2024	May 31, 2023
Segment information
Sales revenue, net	$ 416,847	$ 474,672
Restructuring charges	1,835	7,355
Operating income	30,763	40,641
Capital and intangible asset expenditures	9,142	11,877
Depreciation and amortization	13,836	10,715
Operating Segments
Segment information
Sales revenue, net	416,847	474,672
Restructuring charges	1,835	7,355
Operating income	30,763	40,641
Capital and intangible asset expenditures	9,142	11,877
Depreciation and amortization	13,836	10,715
Home & Outdoor \| Operating Segments
Segment information
Sales revenue, net	198,459	217,144
Restructuring charges	440	2,790
Operating income	15,850	22,116
Capital and intangible asset expenditures	5,745	10,960
Depreciation and amortization	6,647	4,402
Beauty & Wellness \| Operating Segments
Segment information
Sales revenue, net	218,388	257,528
Restructuring charges	1,395	4,565
Operating income	14,913	18,525
Capital and intangible asset expenditures	3,397	917
Depreciation and amortization	$ 7,189	$ 6,313

Segment and Geographic Information - Revenue by Domestic and International (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2024	May 31, 2023
Segment information
Sales revenue, net	$ 416,847	$ 474,672
Domestic sales revenue, net
Segment information
Sales revenue, net	300,680	359,559
International sales revenue, net
Segment information
Sales revenue, net	$ 116,167	$ 115,113
Revenue from Contract with Customer Benchmark \| Geographic concentration
Segment information
Concentration risk percentage	100.00%	100.00%
Revenue from Contract with Customer Benchmark \| Geographic concentration \| Domestic sales revenue, net
Segment information
Concentration risk percentage	72.10%	75.70%
Revenue from Contract with Customer Benchmark \| Geographic concentration \| International sales revenue, net
Segment information
Concentration risk percentage	27.90%	24.30%

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	May 31, 2024	May 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]
Income tax expense (benefit) as a percent of income before income taxes	66.10%	15.50%
Foreign Tax Authority \| Barbados Revenue Authority
Effective Income Tax Rate Reconciliation [Line Items]
Discrete tax charge due to change in legislation	$ 6.0

Earnings per Share (Details) - shares shares in Thousands	3 Months Ended
Earnings per Share (Details) - shares shares in Thousands	May 31, 2024	May 31, 2023
Weighted average diluted securities
Weighted average shares outstanding, basic (in shares)	23,524	24,049
Incremental shares from share-based payment arrangements (in shares)	109	85
Weighted average shares outstanding, diluted (in shares)	23,633	24,134
Anti-dilutive securities
Weighted average diluted securities
Antidilutive securities (in shares)	125	156

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