Helen of Troy (HELE) Falls 23% today

by MarketNewsData

Helen of Troy Ltd (NASDAQ: HELE) shares closed down 22.71% to $23.96 on July 10, 2025, after the company reported weaker-than-expected fiscal Q1 2026 results and issued cautious guidance for the current quarter.

Q1 FY26 Earnings Summary (Non-GAAP)

  • Revenue: $371.7 million (↓10.8% YoY)
    vs. estimate of $395.7 million → Miss by 6.1%
  • EPS: $0.41
    vs. estimate of $0.85 → Miss by 48%
  • Adjusted EBITDA: $25.5 million (↓51.3% YoY)
  • Adjusted Operating Margin: 4.3% (down from 10.3%)
  • Gross Margin: 47.1% (vs. 48.7% YoY)
  • Free Cash Flow: $45.0 million (↑ from $16.2 million YoY)

The company posted a GAAP net loss of $450.7 million, driven by $414.4 million in non-cash impairment charges related to goodwill and intangibles.

Business Drivers

  • Sales declined across the Beauty & Wellness and Home & Outdoor segments, particularly in thermometers, fans, and home products.
  • Olive & June (acquired in FY25) contributed $26.8 million in revenue.
  • Growth was noted in direct-to-consumer and Osprey brands.
  • U.S. point-of-sale unit growth occurred in 8 of 11 core brands.

Q2 FY26 Guidance (vs. Q2 FY25 Actuals)

  • Revenue: $408M–$432M
    (↓8.9% to ↓14.0% YoY; vs. $474.2M in Q2 FY25)
  • EPS: $0.45–$0.60
    (↓50.4% to ↓62.8% YoY; vs. $1.20 in Q2 FY25)

This guidance is well below the single analyst Q2 consensus of $470.2 million in revenue and $1.14 in EPS.

Additional Notes

  • Tariff pressures accounted for ~8 percentage points of the Q1 revenue decline; the company expects FY26 tariff impact on operating income to remain below $15 million.
  • Helen of Troy cited macroeconomic uncertainty, consumer softness, and ongoing CEO succession as risks.
  • The company will only provide quarterly guidance, citing unpredictability in tariffs and the broader environment.

Conclusion

Helen of Troy’s fiscal Q1 2026 results fell significantly short of expectations on both revenue and earnings, and the outlook for Q2 suggests continued pressure. The combination of tariff impacts, softer demand, and restructuring efforts weighed heavily on both the quarter’s performance and investor sentiment.

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