Overview
- Helen of Troy reported fiscal Q2 adjusted earnings of $0.59 per share on revenue of $431.8 million, topping Zacks-based estimates, while a GAAP net loss reached $308.6 million due largely to impairments.
- For the November quarter, the company guided to EPS of $1.55 to $1.80 and revenue of $491 million to $512 million, and it forecast full-year EPS of $3.75 to $4.25 on revenue of $1.74 billion to $1.78 billion, below Wall Street expectations cited in coverage.
- Sales fell 8.9% year over year, with Home & Outdoor down 13.7% and Beauty & Wellness down 4.0%, as adjusted operating margin slipped to 6.2% from 9.8% and adjusted EBITDA margin declined to 8.4% from 11.8%.
- Management flagged persistent cost pressures and tariff-related disruptions and now expects 25% to 30% of cost of goods sold to be exposed to China tariffs by fiscal 2026, up from under 25% previously.
- The company said it is suspending non-essential projects, cutting personnel costs, pausing travel, diversifying sourcing outside China, and planning selective price increases, targeting a net tariff impact on operating income of under $20 million.