Oct 8, 2026, 6:50 AM ETConsumer Defensive

Helen of Troy — Second Quarter Fiscal 2027 Earnings Summary

HELEHELEN OF TROY LTD

Financial Performance

Consolidated net sales increased 2.1% year-over-year to $440.9 million.
GAAP net income was $4.6 million, resulting in diluted EPS of $0.19, compared to a net loss of $308.6 million and diluted loss per share of $13.44 in the prior year period.
Adjusted income was $19.0 million, with adjusted diluted EPS of $0.79, compared to $13.5 million and $0.59 in the prior year.
Gross profit margin improved to 52.2% from 44.2% in the prior year, driven by tariff refunds and lower trade/promotional expenses.
Operating margin was 5.2% compared to (73.1)% in the prior year, which included $326.4 million in non-cash asset impairment charges.
Adjusted operating margin was 8.6% compared to 6.2% in the prior year.
Net cash provided by operating activities was $57.1 million, compared to net cash used of $10.5 million in the prior year.
Adjusted EBITDA was $49.4 million, with an adjusted EBITDA margin of 11.2%, compared to $36.2 million and 8.4% in the prior year.
Total debt decreased to $672.6 million from $893.2 million in the prior year.
Inventory decreased to $480.3 million from $528.9 million in the prior year.
Accounts receivable turnover improved to 67.6 days from 72.2 days in the prior year.
Second quarter results included gross pre-tax tariff refunds of $26.9 million, with approximately $23 million reinvested, resulting in a net pre-tax benefit of approximately $4.0 million and a diluted EPS benefit of approximately $0.12.

Revised Fiscal 2027 consolidated net sales guidance to $1.768–$1.822 billion (previously $1.759–$1.831 billion).
Raised Fiscal 2027 GAAP diluted EPS guidance to $3.63–$4.26 (previously $3.57–$4.18).
Raised Fiscal 2027 adjusted diluted EPS guidance to $3.60–$4.15 (previously $3.25–$3.75).
Raised Fiscal 2027 GAAP net income guidance to $88–$103 million (previously $85–$100 million).
Raised Fiscal 2027 operating cash flow guidance to $163–$179 million (previously $119–$130 million).
Raised Fiscal 2027 adjusted EBITDA guidance to $203–$210 million (previously $190–$197 million).
Raised Fiscal 2027 free cash flow guidance to $120–$140 million (previously $85–$100 million).
Outlook assumes tariff rates in place as of September 2026 remain in effect, including an estimated pre-tax benefit from tariff refunds totaling approximately $80.5 million.
Management plans to reinvest approximately 83% to 88% of tariff refunds into growth investments, resulting in an estimated pre-tax income net benefit of $10 million to $14 million for the full year.
Capital expenditures are expected to be $39–$43 million, up from the prior expectation of $30–$34 million.
Net leverage ratio is targeted to be ≤ 2.7x by the end of Fiscal 2027, improved from the prior target of ≤ 3.2x.
Outlook assumes September 2026 foreign currency exchange rates remain constant for the remainder of the fiscal year.

Home & Outdoor: Net sales increased 9.2% to $227.9 million, driven by strong demand for packs, international sales growth, assortment/distribution gains, closeout channel sales, and new product launches. Operating margin improved to 10.6% from (34.8)% in the prior year.
Beauty & Wellness: Net sales decreased 4.5% to $213.0 million, driven by declines in hair appliances, prestige hair care, and water filtration due to softer consumer demand and competition. Growth was partially offset by heaters, thermometers, and nail care. Operating loss narrowed to $1.1 million from $243.1 million in the prior year.
Sales growth was broad-based across Home & Outdoor, Wellness, and International segments.

The outlook reflects continued inflationary pressures, softness in discretionary categories, conservative retailer inventory management, and an increasingly competitive and promotional landscape.
Heightened geopolitical and supply-chain risks, including tensions in the Middle East, are driving volatility in energy and commodity markets.
Beauty & Wellness declines were attributed to consumer price sensitivity, reduced replenishment orders from retail customers, and increased competitive marketing activity.

Inflationary product cost pressures from commodities, fuel prices, freight, foreign currency fluctuations, and supply availability.
Increased packaging-related costs due to redesigns and compliance with extended producer responsibility programs.
Divestiture litigation costs related to the 2021 sale of the North America personal care business to HRB Brands LLC, which are now excluded from non-GAAP measures.
Risks associated with trade barriers, exchange controls, and potential changes in laws and regulations.
Dependence on third-party manufacturers located in Asia and risks associated with supply chain continuity.
Potential for significant or prolonged recession, future asset impairment charges, and additional interest rate changes.

CEO G. Scott Uzzell stated that second quarter results reflect continued progress against a multi-year roadmap, with sales in line and Adjusted EBITDA and Adjusted EPS better than expected (excluding tariff refund benefits).
Management expressed encouragement regarding progress in building a "Better Helen of Troy" on the road to becoming a "Bigger Helen of Troy."
The company plans to continue making targeted investments in brands, capabilities, and organization, including reinvesting the vast majority of tariff refunds while allowing a portion to support near-term earnings and liquidity.
Management noted a focus on strengthening the balance sheet, generating free cash flow, and allocating resources to opportunities with the greatest potential to create value.

The company recorded a gain on the sale of a distribution facility of $54.9 million in the first six months of Fiscal 2027, which is excluded from non-GAAP measures.
Divestiture litigation costs of $4.0 million were incurred in the second quarter related to the HRB Brands sale and are now treated as non-GAAP adjustments.
The company reduced total debt by approximately $220.6 million over the first six months of the fiscal year.
Free cash flow for the first six months of Fiscal 2027 was $38.3 million, compared to $23.0 million in the prior year.
The company will hold a conference call and webcast on October 8, 2026, at 9:00 a.m. Eastern Time.