Accessibility StatementSkip Navigation Partnership launches with Red Gerard Pro Collection VENICE, Calif. and BEND, Ore., Oct. 28, 2025 /PRNewswire/ --Â Arbor® Snowboards (Arbor) is proud to announce a new multi-year partnership with Hydro Flask®, a Helen of Troy Limited brand and the leader in high-performance insulated drink ware. The collaboration kicks off in Fall 2025 with a pair of limited-edition water bottles that tie directly to some of Arbor's most anticipated snowboard releases. Continue Reading ...

Investors in Helen of Troy Limited (HELE) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 16, 2026 $180 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could a ...

Core Insights - Helen of Troy (NASDAQ: HELE) exceeded low expectations for the quarter, outperforming analysts' estimates in both revenue and earnings [1] Financial Performance - The company reported better-than-expected results for its second fiscal quarter, indicating strong operational performance despite prior low expectations [1]

Core Insights - Helen of Troy Limited (HELE) experienced a significant 25% drop in share price after reporting second-quarter fiscal 2026 results, with revenues and earnings declining year over year but surpassing Zacks Consensus Estimate [1][9] Financial Performance - Adjusted earnings per share (EPS) for HELE were 59 cents, beating the Zacks Consensus Estimate of 54 cents, but reflecting a 51.2% decline from $1.21 in the previous year due to lower adjusted operating income and higher interest expenses [3][9] - Net sales totaled $431.8 million, exceeding the Zacks Consensus Estimate of $419 million, but down 8.9% from $474.2 million in the prior year, primarily due to a 16% decrease in the Organic business [4][9] - The consolidated gross profit margin contracted by 140 basis points to 44.2%, impacted by higher tariffs and increased retail trade spending, partially offset by lower commodity costs and the Olive & June acquisition [5][9] - The adjusted operating income fell 41.9% to $26.9 million, with the adjusted operating margin decreasing by 360 basis points to 6.2% [7][9] Segment Performance - Home & Outdoor segment net sales decreased 13.7% to $208.7 million, driven by lower replenishment orders and heightened competition [8][10] - Beauty & Wellness segment sales fell 4% to $223.1 million, with an 18.2% drop in Organic business sales due to weaker demand and increased competition [11][9] Financial Position - As of the end of the second quarter, HELE had cash and cash equivalents of $22.4 million and total debt of $893.2 million, with net cash provided by operating activities at $47.9 million for the first half of fiscal 2026 [12][9] Outlook - For fiscal 2026, HELE expects consolidated net sales between $1.739 billion and $1.780 billion, indicating a decline of 8.8-6.7% from the previous year [13][14] - The company anticipates third-quarter net sales between $491 million and $512 million, suggesting a decline of 7.5-3.5% year over year, with segment expectations reflecting similar trends [17][18] - Management projects a GAAP loss per share between $29.40 and $29.90, with an adjusted EPS of $3.75-$4.25, indicating a year-over-year decline of 47.7-40.7% [15][16]

Core Insights - Helen Of Troy Limited reported a significant 51% decline in second-quarter adjusted earnings per share, attributed to ongoing cost pressures and tariff-related disruptions expected to impact results for the remainder of fiscal 2026 [1][2] - The company’s quarterly sales decreased by 8.9% year-over-year to $431.8 million, surpassing analyst expectations of $418.8 million [1] - The company anticipates third-quarter adjusted EPS between $1.55 and $1.80, which is below the analyst estimate of $1.98 [2] Financial Performance - Adjusted earnings per share fell 51.2% year-over-year to 59 cents, exceeding the consensus estimate of 53 cents [1] - For fiscal year 2026, the company projects adjusted EPS of $3.75 to $4.25, compared to the street view of $4.58, and sales of $1.739 billion to $1.780 billion against a consensus of $1.750 billion [2] Analyst Reactions - Canaccord Genuity analyst Susan Anderson maintained a Hold rating on Helen Of Troy and reduced the price target from $26 to $23 [4] - UBS analyst Peter Grom also maintained a Neutral rating, lowering the price target from $27 to $25 [4]

Core Viewpoint - Helen of Troy Limited's shares experienced a significant decline of over 21% intra-day despite reporting fiscal second-quarter 2026 results that surpassed analyst expectations for both earnings and revenue [1] Financial Performance - The company reported adjusted earnings per share (EPS) of $0.59, exceeding estimates of $0.53, while revenue reached $431.8 million, surpassing expectations of $416.78 million [2] - However, both adjusted EPS and revenue showed substantial declines from the previous year, with adjusted EPS down 51.2% from $1.21 and revenue down 8.9% from $474.2 million [2] GAAP Loss and Impairment Charges - Helen of Troy reported a GAAP loss of $13.44 per share, primarily due to non-cash impairment charges totaling $326.4 million ($294.0 million after tax), which included $292.6 million in goodwill reductions and $33.8 million in intangible asset write-downs [3] - The gross margin contracted to 44.2% from 45.6% a year earlier, mainly due to higher tariffs that reduced consolidated margins by approximately 200 basis points [3] Future Outlook - For fiscal 2026, the company revised its adjusted EPS forecast to $3.75–$4.25, which is below analyst expectations of $4.58, while maintaining its revenue outlook of $1.74–$1.78 billion, aligning with consensus estimates of $1.75 billion [4]

Core Insights - Helen of Troy Limited (HELE) reported a significant earnings per share (EPS) shortfall, with a reported EPS of -$13.44 against an estimated EPS of $0.54, indicating ongoing financial challenges [2][6] - The company's actual revenue was approximately $431.78 million, falling short of the estimated $504.98 million, reflecting a decline in consolidated net sales revenue from $474.2 million in the same period of the previous fiscal year [3][6] - Profitability metrics show a decrease in gross profit margin to 44.2% from 45.6%, and a negative operating margin of -73.1%, highlighting reduced profitability [4][6] Financial Ratios - The price-to-earnings (P/E) ratio is approximately -0.75, indicating that the company has been experiencing losses over the trailing twelve months [2][6] - The price-to-sales ratio is about 0.27, suggesting that investors are paying $0.27 for every dollar of sales, reflecting market caution [3] - The enterprise value to sales ratio is approximately 0.29, and the enterprise value to operating cash flow ratio is around 5.83, indicating reasonable cash flow generation relative to enterprise value [5] Liquidity and Debt - The company maintains a low debt-to-equity ratio of about 0.07, indicating a low level of debt relative to equity [4] - A current ratio of approximately 1.71 suggests good liquidity to cover short-term liabilities [4]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 8.9%, with organic net sales declining by 16% when excluding Olive & June [39] - Non-GAAP adjusted EPS was $0.59, down from $1.21 in the same period last year, primarily due to lower adjusted operating income and higher interest expense [48] - Free cash flow was positively impacted by $23 million year-to-date, despite a cash flow drag of approximately $34 million from higher tariff payments [20] Business Line Data and Key Metrics Changes - Beauty and Wellness segment saw an organic sales decline of 18.2%, with approximately 5 percentage points attributed to tariff-related disruptions [43] - Home and Outdoor segment net sales declined by 13.7%, with about 4 percentage points of this decline due to tariff-related disruptions [41] - Olive & June contributed $33.4 million in revenue, exceeding expectations and helping to offset declines in other areas [30][44] Market Data and Key Metrics Changes - DTC revenue grew by 15% year-over-year, indicating strong consumer engagement despite broader market challenges [20] - International sales in the Beauty and Wellness segment were affected by government incentives favoring localized fulfillment in China, impacting global brands like Braun [29] Company Strategy and Development Direction - The company aims to re-energize its brands and focus investments on those with the most promise, emphasizing consumer-centric strategies [13][14] - Plans include improving asset efficiency, maintaining shareholder-friendly policies, and enhancing working capital efficiency [16][17] - The company is committed to reducing organizational complexity and empowering teams to make quicker decisions [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges due to tariffs and changing consumer behaviors but remains optimistic about the potential for recovery and growth [18][40] - The focus will be on balancing short-term adjustments with long-term investments in innovation and growth [28][50] - Management expects a gradual improvement in financial performance as transitory impacts from tariffs dissipate [70][71] Other Important Information - The company is actively working on tariff mitigation strategies, including supplier diversification and cost management [25][38] - The effective tax rate is expected to range from 15% to 16% for the full fiscal year, with adjustments in Q3 and Q4 [55] Q&A Session Summary Question: Portfolio evaluation and divestiture opportunities - Management sees promise in all brands but is evaluating the portfolio for long-term planning [67] Question: Earnings base for future growth - Management believes there are transitory impacts affecting current earnings, which should improve in the second half of the year [70][71] Question: Revitalizing brands and restoring growth - Key steps include focusing on consumer insights, driving innovation, and improving decision-making processes [79] Question: Optimal leverage and capital structure - Management aims for leverage closer to two times and is in discussions with lenders for potential flexibility [83] Question: Growth opportunities in categories - Management is exploring growth opportunities across existing and potential new categories [88]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 8.9%, with organic net sales declining by 16% when excluding Olive & June [39] - Non-GAAP adjusted EPS was $0.59 compared to $1.21 in the same period last year, reflecting lower adjusted operating income and higher interest expense [48] - Free cash flow was positive at $23 million year-to-date despite a cash flow drag of approximately $34 million from higher tariff payments [20] Business Line Data and Key Metrics Changes - Beauty and Wellness segment saw an organic sales decline of 18.2%, with approximately five percentage points attributed to tariff-related disruptions [43] - Home and Outdoor segment net sales declined by 13.7%, with about 4 percentage points of this decline due to tariff-related disruptions [41] - Olive & June contributed $33.4 million in revenue, exceeding expectations and helping to offset declines in other areas [30][44] Market Data and Key Metrics Changes - DTC revenue grew by 15% year-over-year, indicating strong consumer engagement despite broader market challenges [20] - International sales in the Beauty and Wellness segment were impacted by government incentives favoring localized fulfillment in China, affecting global brands like Braun [29] Company Strategy and Development Direction - The company aims to re-energize its brands and focus investments on those with the most promise, emphasizing consumer-centric strategies [13][14] - Plans to improve asset efficiency and maintain shareholder-friendly policies, including reducing debt and considering future acquisitions [17] - The leadership intends to simplify operations and enhance decision-making speed to foster innovation and responsiveness to market needs [12][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges from tariffs and consumer caution but expresses optimism about the potential for recovery and growth [17][40] - The company is focused on balancing short-term adjustments with long-term investments in innovation and growth [28] - Management expects a gradual improvement in financial performance as transitory impacts from tariffs and market conditions dissipate [69][70] Other Important Information - The company reported a GAAP operating loss of $315.7 million, primarily due to non-cash asset impairment charges [45] - The effective tax rate decreased to 6.4% due to the tax effect of impairment charges and increased tax benefits for discrete items [48] Q&A Session Summary Question: Portfolio evaluation and divestiture opportunities - The CEO expressed excitement about the portfolio and noted that all brands have promise, but evaluations for potential divestitures are ongoing [61][66] Question: Earnings base for future growth - Management indicated that current earnings are impacted by transitory factors, and they expect improvements in the second half of the year to serve as a foundation for future growth [68][70] Question: Revitalizing brands and restoring growth - The CEO emphasized the importance of consumer insights, innovation, and improving decision-making processes to revitalize brands and drive growth [77][78] Question: Optimal leverage and capital structure - Management aims for leverage closer to two times and is in discussions with lenders to ensure flexibility in the capital structure [82] Question: Growth opportunities in categories - The CEO acknowledged potential growth opportunities in both existing and new categories, emphasizing a consumer-centric approach [87]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 8.9%, with organic net sales declining by 16% when excluding Olive & June [44] - Non-GAAP adjusted EPS was $0.59, down from $1.21 in the same period last year, primarily due to lower adjusted operating income and higher interest expense [53] - Consolidated gross profit margin decreased by 140 basis points to 44.2%, impacted by higher tariffs and increased retail trade expenses [49] Business Line Data and Key Metrics Changes - Beauty and Wellness segment saw organic sales decline of 18.2%, with approximately 5 percentage points attributed to tariff-related disruptions [48] - Home and Outdoor segment net sales declined by 13.7%, with about 4 percentage points of this decline due to tariff-related disruptions [46] - Olive & June contributed $33.4 million in revenue, exceeding expectations and helping to offset some declines in other segments [49][48] Market Data and Key Metrics Changes - DTC revenue grew by 15% year over year, indicating strong consumer engagement despite broader market challenges [24] - International sales in the Beauty and Wellness segment were affected by government incentives favoring localized fulfillment in China, impacting global brands like Braun [32] Company Strategy and Development Direction - The company aims to re-energize its brands and focus investments on those with the most promise, emphasizing consumer-centric strategies [18] - Plans include improving asset efficiency, maintaining shareholder-friendly policies, and investing in core business areas while reducing debt [21] - The leadership is focused on simplifying operations and enhancing decision-making speed to drive innovation and market responsiveness [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges from tariffs and consumer behavior shifts but remains optimistic about long-term growth potential [21][39] - The company is committed to balancing short-term adjustments with long-term investments in innovation and growth [31] - Management expects a gradual improvement in financial performance as transitory impacts from tariffs and market conditions dissipate [78] Other Important Information - The company is actively working on tariff mitigation strategies, including supplier diversification and cost management measures [28] - The leadership transition is seen as a positive step, with new CEO Scott Azzell bringing a competitive and consumer-focused approach [13][14] Q&A Session Summary Question: How does the company view its portfolio and potential divestitures? - The new CEO sees promise in all brands but is evaluating the portfolio for long-term planning [75] Question: What are the expectations for future earnings growth? - Management believes there are transitory impacts affecting fiscal 2026 that will not persist into fiscal 2027, providing a foundation for future growth [78] Question: What steps are needed to revitalize brands that are not growing? - Key steps include focusing on consumer insights, driving innovation, and improving decision-making processes [86] Question: What is the optimal leverage and capital structure for the business? - The company aims for leverage closer to two times and is in discussions with lenders for potential flexibility [90]