Editor's note: The complete news release can be found by clicking here.

EL PASO, Texas, July 8 /PRNewswire-FirstCall/ -- Helen of Troy Limited (NASDAQ:HELE) , designer, developer and worldwide marketer of brand-name personal care and household consumer products, today reported record first quarter sales and an earnings increase of 28.9 percent, excluding significant items for the quarter ended May 31, 2008, as described below.

First quarter sales increased 3.4 percent to a record $145,003,000 versus sales of $140,170,000 in the same period of the prior year. First quarter net earnings, which includes several significant items, were $5,558,000, or $0.18 per fully diluted share, compared with $10,117,000 or $.32 per fully diluted share for the same period in the prior year. First quarter net earnings included the following significant items, net of their related income tax benefit or expense:

-- Impairment charge of $7,605,000, or $0.25 per fully diluted share, related to the write down of intangible assets (primarily trademarks), a non-cash item, as discussed last quarter,

-- Bad debt charge for uncollectible accounts receivable of $2,516,000, or $0.08 per fully diluted share, related to a significant customer bankruptcy filing, as discussed last quarter, and

-- Gains on casualty insurance settlements of $2,635,000, or $0.09 per fully diluted share, primarily related to a warehouse fire in Latin America.

Excluding these significant items, non-GAAP earnings were $13,044,000, or $0.42 per fully diluted share, versus $10,117,000 or $0.32 per fully diluted share for the same period in the prior year, an increase in non-GAAP earnings of 28.9 percent. Gross margins for the first quarter were 43.5 percent compared to 42.8 percent in the first quarter of the prior year, an improvement of 0.7 percentage points.

First quarter sales in the Housewares segment increased 15.3 percent to $38,472,000 compared to $33,358,000 for the same period last year, reflecting continued strength in our OXO brands worldwide. Sales in the Personal Care segment decreased slightly to $106,531,000, or 0.3 percent, in the first quarter compared to $106,812,000 for the same period last year, reflecting the continuing difficult retail environment.

Gerald J. Rubin, Chairman, Chief Executive Officer and President, commenting on the Company's first quarter results, stated "We are very pleased with our record sales for the first quarter. During the period our sales increased in our Housewares Segment and held steady in our Personal Care Segment. Selling, general and administrative expenses were $45,595,000 or 31.4 percent of sales versus $45,717,000 or 32.6 percent of sales for the first quarter of the prior year, an improvement of 1.2 percentage points. Operating income before impairment charges for the first quarter increased to $17,426,000 versus $14,301,000 in the prior year first quarter, an increase of 21.9 percent.

"As of May 31, 2008, Helen of Troy's balance sheet remained strong, with cash, trading securities, temporary and long-term investments of $97.4 million compared to $59.6 million at the end of the first fiscal quarter of the prior year and stockholders' equity of $574.4 million, an increase of $46 million from the comparable period last year. Our inventory level was $149.7 million, a decrease of $6.5 million, or 4.2 percent, from the comparable period last year. The current book value of Helen of Troy's common shares is approximately $18.52 per fully diluted share.

"EBITDA (Earnings before interest, taxes, depreciation and amortization) before significant items was $22.3 million for the first quarter, versus $18.2 million for the first quarter of the prior year, an increase of 22.7 percent.

"We continue to execute our strategic plan for fiscal year 2009. The economic environment continues to remain challenging. As a major leader in our product categories to our retail partners, we believe we are poised to effectively react to changes in the marketplace as they occur. We stand ready to take advantage of improvements in the future retail environment," Rubin concluded.