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Published: 2023-04-19 00:00:00 ET
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EX-99.1 2 fy23_q4xex-991xrecast.htm EX-99.1 Document

Exhibit 99.1

HISTORICAL SEGMENT FINANCIAL INFORMATION

Fiscal 2023 Consolidated and Segment Net Sales Revenue
(Unaudited) (in thousands)

Three Months Ended May 31,
 Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2022 sales revenue, net$193,644 $347,579 $541,223 
Organic business (1)(8,604)(75,503)(84,107)
Impact of foreign currency(2,024)(1,507)(3,531)
Acquisition (2) (3)51,247 3,246 54,493 
Change in sales revenue, net40,619 (73,764)(33,145)
Fiscal 2023 sales revenue, net$234,263 $273,815 $508,078 
Total net sales revenue growth (decline)21.0 %(21.2)%(6.1)%
Organic business(4.4)%(21.7)%(15.5)%
Impact of foreign currency(1.0)%(0.4)%(0.7)%
Acquisition26.5 %0.9 %10.1 %
Three Months Ended August 31,
 Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2022 sales revenue, net$215,218 $260,010 $475,228 
Organic business (1)(19,320)12,093 (7,227)
Impact of foreign currency(2,735)(1,469)(4,204)
Acquisition (2) (3)47,396 10,207 57,603 
Change in sales revenue, net25,341 20,831 46,172 
Fiscal 2023 sales revenue, net$240,559 $280,841 $521,400 
Total net sales revenue growth (decline)11.8 %8.0 %9.7 %
Organic business(9.0)%4.7 %(1.5)%
Impact of foreign currency(1.3)%(0.6)%(0.9)%
Acquisition22.0 %3.9 %12.1 %
Three Months Ended November 30,
 Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2022 sales revenue, net$246,135 $378,749 $624,884 
Organic business (1)(57,262)(58,288)(115,550)
Impact of foreign currency(3,191)(3,883)(7,074)
Acquisition (2) (3)43,255 13,091 56,346 
Change in sales revenue, net(17,198)(49,080)(66,278)
Fiscal 2023 sales revenue, net$228,937 $329,669 $558,606 
Total net sales revenue growth (decline)(7.0)%(13.0)%(10.6)%
Organic business(23.3)%(15.4)%(18.5)%
Impact of foreign currency(1.3)%(1.0)%(1.1)%
Acquisition17.6 %3.5 %9.0 %



1

Fiscal 2022 Consolidated and Segment Net Sales Revenue
(Unaudited) (in thousands)

Three Months Ended May 31,
 Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2021 sales revenue, net$140,628 $280,207 $420,835 
Organic business (1)52,127 62,755 114,882 
Impact of foreign currency889 4,617 5,506 
Change in sales revenue, net53,016 67,372 120,388 
Fiscal 2022 sales revenue, net$193,644 $347,579 $541,223 
Total net sales revenue growth37.7 %24.0 %28.6 %
Organic business37.1 %22.4 %27.3 %
Impact of foreign currency0.6 %1.6 %1.3 %
Three Months Ended August 31,
 Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2021 sales revenue, net$201,863 $328,989 $530,852 
Organic business (1)13,084 (70,765)(57,681)
Impact of foreign currency271 1,786 2,057 
Change in sales revenue, net13,355 (68,979)(55,624)
Fiscal 2022 sales revenue, net$215,218 $260,010 $475,228 
Total net sales revenue growth (decline)6.6 %(21.0)%(10.5)%
Organic business6.5 %(21.5)%(10.9)%
Impact of foreign currency0.1 %0.5 %0.4 %
Three Months Ended November 30,
 Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2021 sales revenue, net$222,400 $415,337 $637,737 
Organic business (1)23,601 (37,652)(14,051)
Impact of foreign currency134 1,064 1,198 
Change in sales revenue, net23,735 (36,588)(12,853)
Fiscal 2022 sales revenue, net$246,135 $378,749 $624,884 
Total net sales revenue growth (decline)10.7 %(8.8)%(2.0)%
Organic business10.6 %(9.1)%(2.2)%
Impact of foreign currency0.1 %0.3 %0.2 %
2

Fiscal 2022 Consolidated and Segment Net Sales Revenue
(Unaudited) (in thousands)

Three Months Ended Last Day of February,
 Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2021 sales revenue, net$162,463 $346,912 $509,375 
Organic business (1)24,683 25,522 50,205 
Impact of foreign currency(672)(1,261)(1,933)
Acquisition (2)24,373 — 24,373 
Change in sales revenue, net48,384 24,261 72,645 
Fiscal 2022 sales revenue, net $210,847 $371,173 $582,020 
Total net sales revenue growth (decline)29.8 %7.0 %14.3 %
Organic business 15.2 %7.4 %9.9 %
Impact of foreign currency(0.4)%(0.4)%(0.4)%
Acquisition15.0 %— %4.8 %
Fiscal Year Ended Last Day of February,
 Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2021 sales revenue, net$727,354 $1,371,445 $2,098,799 
Organic business (1)113,495 (20,140)93,355 
Impact of foreign currency622 6,206 6,828 
Acquisition (2)24,373 — 24,373 
Change in sales revenue, net138,490 (13,934)124,556 
Fiscal 2022 sales revenue, net $865,844 $1,357,511 $2,223,355 
Total net sales revenue growth (decline)19.0 %(1.0)%5.9 %
Organic business 15.6 %(1.5)%4.4 %
Impact of foreign currency0.1 %0.5 %0.3 %
Acquisition3.4 %— %1.2 %

3

Fiscal 2023 Consolidated and Segment Net Sales from Core and Non-Core Business (4)
(Unaudited) (in thousands)

Three Months Ended May 31,
Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2022 sales revenue, net$193,644 $347,579 $541,223 
Core business40,619 (53,645)(13,026)
Non-Core business (Personal Care)— (20,119)(20,119)
Change in sales revenue, net40,619 (73,764)(33,145)
Fiscal 2023 sales revenue, net$234,263 $273,815 $508,078 
Total net sales revenue growth (decline)21.0 %(21.2)%(6.1)%
Core business21.0 %(15.4)%(2.4)%
Non-Core business (Personal Care)— %(5.8)%(3.7)%
Three Months Ended August 31,
Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2022 sales revenue, net$215,218 $260,010 $475,228 
Core business25,341 26,574 51,915 
Non-Core business (Personal Care)— (5,743)(5,743)
Change in sales revenue, net25,341 20,831 46,172 
Fiscal 2023 sales revenue, net$240,559 $280,841 $521,400 
Total net sales revenue growth (decline)11.8 %8.0 %9.7 %
Core business11.8 %10.2 %10.9 %
Non-Core business (Personal Care)— %(2.2)%(1.2)%
Three Months Ended November 30,
Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2022 sales revenue, net$246,135 $378,749 $624,884 
Core business(17,198)(44,705)(61,903)
Non-Core business (Personal Care)— (4,375)(4,375)
Change in sales revenue, net(17,198)(49,080)(66,278)
Fiscal 2023 sales revenue, net$228,937 $329,669 $558,606 
Total net sales revenue growth (decline)(7.0)%(13.0)%(10.6)%
Core business(7.0)%(11.8)%(9.9)%
Non-Core business (Personal Care)— %(1.2)%(0.7)%


4

Fiscal 2022 Consolidated and Segment Net Sales from Core and Non-Core Business (4)
(Unaudited) (in thousands)

Three Months Ended May 31,
Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2021 sales revenue, net$140,628 $280,207 $420,835 
Core business53,016 68,569 121,585 
Non-Core business (Personal Care)— (1,197)(1,197)
Change in sales revenue, net53,016 67,372 120,388 
Fiscal 2022 sales revenue, net$193,644 $347,579 $541,223 
Total net sales revenue growth (decline)37.7 %24.0 %28.6 %
Core business37.7 %24.5 %28.9 %
Non-Core business (Personal Care)— %(0.4)%(0.3)%
Three Months Ended August 31,
Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2021 sales revenue, net$201,863 $328,989 $530,852 
Core business13,355 (53,580)(40,225)
Non-Core business (Personal Care)— (15,399)(15,399)
Change in sales revenue, net13,355 (68,979)(55,624)
Fiscal 2022 sales revenue, net$215,218 $260,010 $475,228 
Total net sales revenue growth (decline)6.6 %(21.0)%(10.5)%
Core business6.6 %(16.3)%(7.6)%
Non-Core business (Personal Care)— %(4.7)%(2.9)%
Three Months Ended November 30,
Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2021 sales revenue, net$222,400 $415,337 $637,737 
Core business23,735 (20,992)2,743 
Non-Core business (Personal Care)— (15,596)(15,596)
Change in sales revenue, net23,735 (36,588)(12,853)
Fiscal 2022 sales revenue, net$246,135 $378,749 $624,884 
Total net sales revenue growth (decline)10.7 %(8.8)%(2.0)%
Core business10.7 %(5.1)%0.4 %
Non-Core business (Personal Care)— %(3.8)%(2.4)%
5

Fiscal 2022 Consolidated and Segment Net Sales from Core and Non-Core Business (4)
(Unaudited) (in thousands)
 Three Months Ended Last Day of February,
Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2021 sales revenue, net $162,463 $346,912 $509,375 
Core business48,384 36,299 84,683 
Non-Core business (Personal Care)— (12,038)(12,038)
Change in sales revenue, net48,384 24,261 72,645 
Fiscal 2022 sales revenue, net $210,847 $371,173 $582,020 
Total net sales revenue growth (decline)29.8 %7.0 %14.3 %
Core business29.8 %10.5 %16.6 %
Non-Core business (Personal Care)— %(3.5)%(2.4)%
 Fiscal Year Ended Last Day of February,
Home &
Outdoor		Beauty & WellnessTotal
Fiscal 2021 sales revenue, net $727,354 $1,371,445 $2,098,799 
Core business138,490 30,296 168,786 
Non-Core business (Personal Care)— (44,230)(44,230)
Change in sales revenue, net138,490 (13,934)124,556 
Fiscal 2022 sales revenue, net $865,844 $1,357,511 $2,223,355 
Total net sales revenue growth (decline)19.0 %(1.0)%5.9 %
Core business19.0 %2.2 %8.0 %
Non-Core business (Personal Care)— %(3.2)%(2.1)%










6

Reconciliation of Non-GAAP Financial Measures – Fiscal 2023 GAAP Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (5)
(Unaudited) (in thousands)

 Three Months Ended May 31, 2022
 Home &
Outdoor (2)		Beauty &
Wellness (3)		Total
Operating income, as reported (GAAP)$29,793 12.7 %$4,146 1.5 %$33,939 6.7 %
Acquisition-related expenses78 — %2,676 1.0 %2,754 0.5 %
EPA compliance costs— — %11,644 4.3 %11,644 2.3 %
Restructuring charges— — %2 — %2 — %
Subtotal29,871 12.8 %18,468 6.7 %48,339 9.5 %
Amortization of intangible assets1,746 0.7 %2,615 1.0 %4,361 0.9 %
Non-cash share-based compensation5,998 2.6 %10,621 3.9 %16,619 3.3 %
Adjusted operating income (non-GAAP)$37,615 16.1 %$31,704 11.6 %$69,319 13.6 %
 Three Months Ended August 31, 2022
 Home &
Outdoor (2)		Beauty &
Wellness (3)		Total
Operating income, as reported (GAAP)$42,082 17.5 %$4,864 1.7 %$46,946 9.0 %
Acquisition-related expenses41 — %(11)— %30 — %
EPA compliance costs— — %8,354 3.0 %8,354 1.6 %
Restructuring charges472 0.2 %4,304 1.5 %4,776 0.9 %
Subtotal42,595 17.7 %17,511 6.2 %60,106 11.5 %
Amortization of intangible assets1,753 0.7 %2,896 1.0 %4,649 0.9 %
Non-cash share-based compensation2,640 1.1 %4,855 1.7 %7,495 1.4 %
Adjusted operating income (non-GAAP)$46,988 19.5 %$25,262 9.0 %$72,250 13.9 %
 Three Months Ended November 30, 2022
 Home &
Outdoor (2)		Beauty &
Wellness (3)		Total
Operating income, as reported (GAAP)$30,847 13.5 %$46,346 14.1 %$77,193 13.8 %
Acquisition-related expenses(2)— %2 — %— — %
EPA compliance costs— — %2,103 0.6 %2,103 0.4 %
Gain from insurance recoveries— — %(9,676)(2.9)%(9,676)(1.7)%
Restructuring charges5,090 2.2 %5,373 1.6 %10,463 1.9 %
Subtotal35,935 15.7 %44,148 13.4 %80,083 14.3 %
Amortization of intangible assets1,756 0.8 %2,896 0.9 %4,652 0.8 %
Non-cash share-based compensation2,169 0.9 %5,772 1.8 %7,941 1.4 %
Adjusted operating income (non-GAAP)$39,860 17.4 %$52,816 16.0 %$92,676 16.6 %

7

Reconciliation of Non-GAAP Financial Measures – Fiscal 2022 GAAP Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (5)
(Unaudited) (in thousands)

 Three Months Ended May 31, 2021
 Home &
Outdoor		Beauty &
Wellness		Total
Operating income, as reported (GAAP)$27,143 14.0 %$37,692 10.8 %$64,835 12.0 %
EPA compliance costs— — %13,112 3.8 %13,112 2.4 %
Restructuring charges— — %6 — %6 — %
Subtotal27,143 14.0 %50,810 14.6 %77,953 14.4 %
Amortization of intangible assets518 0.3 %2,465 0.7 %2,983 0.6 %
Non-cash share-based compensation5,551 2.9 %8,469 2.4 %14,020 2.6 %
Adjusted operating income (non-GAAP)$33,212 17.2 %$61,744 17.8 %$94,956 17.5 %
 Three Months Ended August 31, 2021
 Home &
Outdoor		Beauty &
Wellness		Total
Operating income, as reported (GAAP)$41,921 19.5 %$25,370 9.8 %$67,291 14.2 %
EPA compliance costs— — %2,960 1.1 %2,960 0.6 %
Restructuring charges369 0.2 %— — %369 0.1 %
Subtotal42,290 19.6 %28,330 10.9 %70,620 14.9 %
Amortization of intangible assets519 0.2 %2,467 0.9 %2,986 0.6 %
Non-cash share-based compensation3,157 1.5 %4,623 1.8 %7,780 1.6 %
Adjusted operating income (non-GAAP)$45,966 21.4 %$35,420 13.6 %$81,386 17.1 %
 Three Months Ended November 30, 2021
 Home &
Outdoor		Beauty &
Wellness		Total
Operating income, as reported (GAAP)$43,239 17.6 %$46,801 12.4 %$90,040 14.4 %
Acquisition-related expenses1,605 0.7 %— — %1,605 0.3 %
EPA compliance costs— — %4,926 1.3 %4,926 0.8 %
Restructuring charges— — %5 — %5 — %
Subtotal44,844 18.2 %51,732 13.7 %96,576 15.5 %
Amortization of intangible assets525 0.2 %2,469 0.7 %2,994 0.5 %
Non-cash share-based compensation2,339 1.0 %4,210 1.1 %6,549 1.0 %
Adjusted operating income (non-GAAP)$47,708 19.4 %$58,411 15.4 %$106,119 17.0 %
8

Reconciliation of Non-GAAP Financial Measures – Fiscal 2022 GAAP Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (5)
(Unaudited) (in thousands)

 Three Months Ended February 28, 2022
 Home &
Outdoor (2)		Beauty &
Wellness		Total
Operating income, as reported (GAAP)$22,622 10.7 %$27,762 7.5 %$50,384 8.7 %
Acquisition-related expenses 819 0.4 %— — %819 0.1 %
EPA compliance costs— — %11,356 3.1 %11,356 2.0 %
Subtotal23,441 11.1 %39,118 10.5 %62,559 10.7 %
Amortization of intangible assets1,329 0.6 %2,472 0.7 %3,801 0.7 %
Non-cash share-based compensation2,765 1.3 %3,504 0.9 %6,269 1.1 %
Adjusted operating income (non-GAAP)$27,535 13.1 %$45,094 12.1 %$72,629 12.5 %
 Fiscal Year Ended February 28, 2022
 Home &
Outdoor (2)		Beauty &
Wellness		Total
Operating income, as reported (GAAP)$134,925 15.6 %$137,625 10.1 %$272,550 12.3 %
Acquisition-related expenses 2,424 0.3 %— — %2,424 0.1 %
EPA compliance costs— — %32,354 2.4 %32,354 1.5 %
Restructuring charges369 — %11 — %380 — %
Subtotal137,718 15.9 %169,990 12.5 %307,708 13.8 %
Amortization of intangible assets2,891 0.3 %9,873 0.7 %12,764 0.6 %
Non-cash share-based compensation13,812 1.6 %20,806 1.5 %34,618 1.6 %
Adjusted operating income (non-GAAP)$154,421 17.8 %$200,669 14.8 %$355,090 16.0 %

9

Reconciliation of Non-GAAP Financial Measures – Fiscal 2023 EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA (5)
(Unaudited) (in thousands)

 Three Months Ended May 31, 2022
 Home &
Outdoor (2)		Beauty & Wellness (3)Total
Operating income, as reported (GAAP)$29,793 $4,146 $33,939 
Depreciation and amortization4,495 6,003 10,498 
Non-operating income, net— 67 67 
EBITDA (non-GAAP)34,288 10,216 44,504 
Add: Acquisition-related expenses 78 2,676 2,754 
 EPA compliance costs— 11,644 11,644 
 Restructuring charges— 2 2 
 Non-cash share-based compensation5,998 10,621 16,619 
Adjusted EBITDA (non-GAAP)$40,364 $35,159 $75,523 
 Three Months Ended August 31, 2022
 Home &
Outdoor (2)		Beauty & Wellness (3)Total
Operating income, as reported (GAAP)$42,082 $4,864 $46,946 
Depreciation and amortization4,493 6,626 11,119 
Non-operating income, net— 113 113 
EBITDA (non-GAAP)46,575 11,603 58,178 
Add: Acquisition-related expenses 41 (11)30 
 EPA compliance costs— 8,354 8,354 
 Restructuring charges472 4,304 4,776 
 Non-cash share-based compensation2,640 4,855 7,495 
Adjusted EBITDA (non-GAAP)$49,728 $29,105 $78,833 
 Three Months Ended November 30, 2022
 Home &
Outdoor (2)		Beauty & Wellness (3)Total
Operating income, as reported (GAAP)$30,847 $46,346 $77,193 
Depreciation and amortization4,716 6,997 11,713 
Non-operating income, net— 5 5 
EBITDA (non-GAAP)35,563 53,348 88,911 
Add: Acquisition-related expenses (2)2 — 
 EPA compliance costs— 2,103 2,103 
 Gain from insurance recoveries— (9,676)(9,676)
 Restructuring charges5,090 5,373 10,463 
 Non-cash share-based compensation2,169 5,772 7,941 
Adjusted EBITDA (non-GAAP)$42,820 $56,922 $99,742 



10

Reconciliation of Non-GAAP Financial Measures – Fiscal 2022 EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA (5)
(Unaudited) (in thousands)

 Three Months Ended May 31, 2021
 Home &
Outdoor		Beauty & WellnessTotal
Operating income, as reported (GAAP)$27,143 $37,692 $64,835 
Depreciation and amortization2,548 6,165 8,713 
Non-operating income, net— 102 102 
EBITDA (non-GAAP)29,691 43,959 73,650 
Add: EPA compliance costs— 13,112 13,112 
  Restructuring charges— 6 6 
  Non-cash share-based compensation5,551 8,469 14,020 
Adjusted EBITDA (non-GAAP)$35,242 $65,546 $100,788 
 Three Months Ended August 31, 2021
 Home &
Outdoor		Beauty & WellnessTotal
Operating income, as reported (GAAP)$41,921 $25,370 $67,291 
Depreciation and amortization2,815 5,913 8,728 
Non-operating income, net— 31 31 
EBITDA (non-GAAP)44,736 31,314 76,050 
Add: EPA compliance costs— 2,960 2,960 
  Restructuring charges369 — 369 
  Non-cash share-based compensation3,157 4,623 7,780 
Adjusted EBITDA (non-GAAP)$48,262 $38,897 $87,159 
 Three Months Ended November 30, 2021
 Home &
Outdoor		Beauty & WellnessTotal
Operating income, as reported (GAAP)$43,239 $46,801 $90,040 
Depreciation and amortization2,894 5,747 8,641 
Non-operating income, net— 52 52 
EBITDA (non-GAAP)46,133 52,600 98,733 
Add: Acquisition-related expenses1,605 — 1,605 
 EPA compliance costs— 4,926 4,926 
 Restructuring charges— 5 5 
 Non-cash share-based compensation2,339 4,210 6,549 
Adjusted EBITDA (non-GAAP)$50,077 $61,741 $111,818 
11

Reconciliation of Non-GAAP Financial Measures – Fiscal 2022 EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA (5)
(Unaudited) (in thousands)

 Three Months Ended February 28, 2022
 Home &
Outdoor (2)		Beauty &
Wellness 		Total
Operating income, as reported (GAAP)$22,622 $27,762 $50,384 
Depreciation and amortization3,855 5,892 9,747 
Non-operating income, net— 75 75 
EBITDA (non-GAAP)26,477 33,729 60,206 
Add: Acquisition-related expenses 819 — 819 
 EPA compliance costs— 11,356 11,356 
 Non-cash share-based compensation2,765 3,504 6,269 
Adjusted EBITDA (non-GAAP)$30,061 $48,589 $78,650 
 Fiscal Year Ended February 28, 2022
 Home &
Outdoor (2)		Beauty &
Wellness		Total
Operating income, as reported (GAAP)$134,925 $137,625 $272,550 
Depreciation and amortization12,112 23,717 35,829 
Non-operating income, net— 260 260 
EBITDA (non-GAAP)147,037 161,602 308,639 
Add: Acquisition-related expenses 2,424 — 2,424 
 EPA compliance costs— 32,354 32,354 
 Restructuring charges369 11 380 
 Non-cash share-based compensation13,812 20,806 34,618 
Adjusted EBITDA (non-GAAP)$163,642 $214,773 $378,415 
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HELEN OF TROY LIMITED AND SUBSIDIARIES
Notes to Historical Segment Financial Information
(1)Organic business refers to net sales revenue associated with product lines or brands after the first twelve months from the date the product line or brand is 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.
(2)On December 29, 2021, we completed the acquisition of Osprey, which has been included within the Home & Outdoor segment. As such, the three months ended February 28, 2022 and fiscal 2022 include approximately nine weeks of operating results from Osprey and fiscal 2023 includes a full year of operating results. Osprey sales prior to the first annual anniversary of the acquisition are reported in Acquisition. Sales from Osprey subsequent to the first annual anniversary of the acquisition are reported in Organic business.
(3)On April 22, 2022, we completed the acquisition of Curlsmith, which has been included within the Beauty & Wellness segment. As such, the three months ended May 31, 2022 includes approximately six weeks of operating results from Curlsmith and fiscal 2023 includes approximately forty-five weeks of operating results. Curlsmith sales are reported in Acquisition.
(4)The Company defines Core business as strategic business that it expects to be an ongoing part of its operations, and Non-Core business as business or net assets (including net assets held for sale) that it expects to divest within a year of its designation as Non-Core.
(5)The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States of America (“GAAP”). To supplement its presentation, the Company discloses certain financial measures that may be considered non-GAAP. This historical segment financial information contains non-GAAP financial measures. Adjusted Operating Income, Adjusted Operating Margin, EBITDA, and Adjusted EBITDA (“Non-GAAP Financial Measures”) that are in the preceding tables may be considered non-GAAP financial information as contemplated by SEC Regulation G, Rule 100. Accordingly, the Company is providing the preceding tables that reconcile these measures to their corresponding GAAP-based measures. The Company believes that these non-GAAP measures provide useful information to management and investors regarding financial and business trends relating to its financial condition and results of operations. The Company believes that these non-GAAP financial measures, in combination with the Company’s financial results calculated in accordance with GAAP, provide investors with additional perspective regarding the impact of certain charges and benefits on applicable income and margin measures. The Company also believes that these non-GAAP measures facilitate a more direct comparison of the Company’s performance with its competitors. The Company further believes that including the excluded charges and benefits would not accurately reflect the underlying performance of the Company’s operations for the period in which the charges and benefits are incurred, even though such charges and benefits may be incurred and reflected in the Company’s GAAP financial results in the near future. The material limitation associated with the use of the non-GAAP measures is that the non-GAAP measures do not reflect the full economic impact of the Company’s activities. These non-GAAP measures are not prepared in accordance with GAAP, are not an alternative to GAAP financial information, and may be calculated differently than non-GAAP financial information disclosed by other companies. Accordingly, undue reliance should not be placed on non-GAAP information.

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