Diversified consumer product owner, Helen of Troy Limited ( HELE ), just reported its Q3 results , and markets are continuing to give the company a shrug. In my view, this is mostly warranted given the macroeconomicAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than ...

 Vancouver, B.C. – Jan 8, 2026 ‐ TheNewswire - Forty Pillars Mining Corp. (CSE: PLLR) (the “Company” or “Forty Pillars”) is pleased to announce that it has entered into an agreement (the “Agreement”) giving it the right to acquire 100% of the Golden Link Project (the “Project” or “GLP”) located in the prolific Central Newfoundland Gold Belt.The Golden Link Project consists of two contiguous mineral licenses encompassing a total land area of ~36.25 km2 located approximately 21 km north of the town of Gander, ...

Core Insights - The company is focusing on four key priorities: re-energizing brands and people, consumer-centric structural adaptation, strengthening the portfolio for predictable growth, and improving asset efficiency while maintaining shareholder-friendly policies. Fiscal 2027 is seen as a significant step towards the long-term strategy, with an outlook expected in April and a growth strategy planned for the second half of 2026 [1][3]. Financial Performance - In the third quarter of fiscal 2026, the company reported a 3.4% decline in consolidated net sales, with organic sales down 10.8%. Approximately $17.3 million of this decline was attributed to tariff-related disruptions and stop-shipments [5][6]. - Adjusted EPS for the quarter was $1.71, with management lowering the full-year adjusted EPS guidance to a range of $3.25 to $3.75 due to less than full pricing realization and increased costs [10][17]. - Gross margin decreased by 200 basis points to 46.9%, primarily due to higher tariffs and inventory obsolescence impacts, while adjusted operating margin fell to 12.9% [10][11]. Segment Performance - The Home and Outdoor segment saw a 6.7% decline in net sales, while the Beauty and Wellness segment experienced a 0.5% decrease, with organic sales down 13.9% [7][8]. - Specific brands like Osprey, OXO, and Olive & June showed growth, with Olive & June contributing nearly $38 million in sales, exceeding internal expectations [9]. Strategic Initiatives - The company is shifting to a growth-first strategy, focusing on brand re-energization, consumer-centric innovation, and supplier diversification to mitigate tariff impacts. It aims to reduce China-tariff exposure on COGS to 25-30% by the end of fiscal 2026 [4][15]. - Management is evaluating its brand portfolio as part of a strategic review, with a focus on tightening inventory and improving balance sheet productivity [19]. Tariff Impact - Year-to-date unmitigated tariffs have reduced gross profit by $31.3 million, with a full-year impact expected to be between $50 million and $55 million. The company anticipates a less than $30 million impact on operating income for the full year [15][17]. - Management has made progress in tariff mitigation through supplier diversification and cost reductions, but pricing realization remains below expectations due to market dynamics [14].

Core Insights - Helen of Troy reported revenue of $512.83 million for the quarter ended November 2025, reflecting a year-over-year decline of 3.4% [1] - The earnings per share (EPS) for the quarter was $1.71, down from $2.67 in the same quarter last year, with no EPS surprise as the consensus estimate was also $1.71 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $505.42 million by 1.47% [1] Financial Performance Metrics - Net sales in the Beauty & Wellness segment were $283.19 million, slightly below the estimated $284.5 million, representing a year-over-year decrease of 0.5% [4] - Net sales in the Home & Outdoor segment reached $229.64 million, surpassing the average estimate of $220.92 million, but showed a significant decline of 6.7% year over year [4] - Adjusted operating income (non-GAAP) for Beauty & Wellness was $38.96 million, exceeding the two-analyst average estimate of $35.42 million [4] - Adjusted operating income (non-GAAP) for Home & Outdoor was $27.32 million, falling short of the average estimate of $44.45 million based on two analysts [4] Stock Performance - Over the past month, shares of Helen of Troy have returned -1.1%, contrasting with a +0.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported a consolidated net sales decrease of 3.4%, with organic net sales declining by 10.8% [18][19] - Adjusted EPS was reported at $1.71, reflecting challenges in pricing realization and increased operational costs [23] - Gross profit margin decreased by 200 basis points to 46.9%, primarily due to higher tariffs and inventory obsolescence [21] - SG&A ratio increased by 160 basis points, influenced by the acquisition of Olive & June and higher freight costs [22] Business Segment Performance Changes - Home and outdoor segment net sales declined by 6.7%, while beauty and wellness segment net sales decreased by 0.5% [11][20] - Organic beauty and wellness sales fell by 13.9%, with tariff-related disruptions contributing significantly [20] - Olive & June outperformed expectations with nearly $38 million in sales, indicating strong brand performance amidst overall declines [11] Market Data and Key Metrics Changes - International sales fell by 8.1%, reflecting challenges in global markets [11] - The company noted a bifurcated economy, with high-income households showing robust spending while lower-income consumers are cautious due to inflation [4] Company Strategy and Development Direction - The company is focused on re-energizing brands, improving operational efficiency, and investing in innovation to drive growth [7][9] - Strategic priorities include enhancing consumer engagement, sharpening execution, and fostering brand loyalty [6][8] - The company plans to maintain a disciplined approach to resource allocation, focusing on high-impact opportunities for long-term growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging external environment but expressed confidence in the company's ability to stabilize and grow [4][5] - The focus will shift towards revenue improvement rather than cost reduction, with an emphasis on innovation and brand building [32][55] - Management expects to provide a more detailed fiscal 2027 outlook in April, indicating a commitment to long-term growth strategies [10][24] Other Important Information - The company is implementing mitigation strategies for tariffs, including supplier diversification and cost reductions, to reduce the impact on operating income [17][18] - Inventory levels are projected to be between $475 million and $490 million at year-end, including tariff-related costs [25] Q&A Session Summary Question: Insights on top-line trends and brand performance - Management is encouraged by growth in brands like Osprey and Olive & June, while acknowledging the need for improvement in declining categories [29][30] Question: Earnings guidance and future outlook - Management indicated that the current earnings guidance may serve as a base for future growth, emphasizing the importance of investing in innovation [31][32] Question: Return to consumer-centric innovation - Management is committed to revitalizing underperforming brands and expects to see benefits from these efforts in the upcoming quarters [38][40] Question: Category demand and consumer behavior - Management noted that while some categories are experiencing growth, others are declining, and they are focused on leveraging strong brands to navigate the market [48][50] Question: Leverage and portfolio optimization - Management is focused on improving balance sheet efficiency and is open to evaluating the brand portfolio for long-term value creation [70][72]

Financial Data and Key Metrics Changes - The company reported a consolidated net sales decrease of 3.4%, which was better than expected, with organic net sales declining by 10.8% [27] - Gross profit margin decreased by 200 basis points to 46.9%, primarily due to higher tariffs and unfavorable inventory obsolescence impacts [29] - Adjusted EPS was reported at $1.71, with a year-to-date free cash flow of $29 million despite $58 million in tariff-related cash outflows [32] Business Line Data and Key Metrics Changes - Home and outdoor net sales declined by 6.7%, while beauty and wellness net sales decreased by 0.5%, with organic beauty and wellness sales down by 13.9% [28] - Olive & June outperformed expectations with nearly $38 million in sales, contributing positively to the beauty and wellness segment [17] - Organic direct-to-consumer revenue increased by 21% [19] Market Data and Key Metrics Changes - International sales fell by 8.1%, reflecting challenges in the global market [17] - The company noted a bifurcated economy, with high-income households showing robust spending while lower and middle-income consumers were more cautious due to inflation [5] Company Strategy and Development Direction - The company is focused on investing in brand loyalty, innovation, and talent to restore growth [5][6] - Four strategic priorities were outlined: re-energizing brands and people, adapting structure to center on consumers, strengthening the portfolio for predictable growth, and improving asset efficiency [9] - The company plans to maximize operational efficiency and balance sheet health while investing in long-term growth opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about product innovation and upcoming launches, emphasizing the need to adapt to consumer preferences [6][10] - The company anticipates continued margin pressure due to consumer trade-down behavior and a more promotional environment [37] - Management expects to see improvements in revenue and operating leverage as they shift focus from cost reduction to revenue growth [44][68] Other Important Information - The company is navigating tariff impacts, with a full-year expected impact of $50 million to $55 million on gross profit [25] - Inventory is projected to be between $475 million and $490 million at year-end, including estimated tariff-related costs [34] - The company is evaluating its brand portfolio for potential optimization and divestiture opportunities [82][86] Q&A Session Summary Question: What is the status of declining categories and turnaround efforts? - Management is encouraged by growth in brands like Osprey and Olive & June but acknowledges the need for improvement in declining categories [40] Question: Is this year's earnings guidance the bottom for earnings power? - Management indicated a focus on growth and innovation, suggesting that the current guidance may serve as a base for future growth [42][43] Question: How is the company approaching consumer-centric innovation? - Management emphasized the need to invest in underperforming brands and ensure they are set up for success [49][51] Question: What is the outlook for category demand and potential improvements? - Management believes that brands with strong propositions will continue to perform well, even in challenging times, and expects improvements in demand as the economy stabilizes [60][61] Question: How does the company plan to manage leverage and portfolio optimization? - Management is focused on tightening the balance sheet and improving operational efficiency while considering portfolio evaluations for long-term value [82][86]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 3.4%, with organic net sales declining by 10.8% [19][20] - Adjusted EPS was reported at $1.71, reflecting challenges in pricing realization and increased costs [23] - Consolidated gross profit margin decreased by 200 basis points to 46.9% due to higher tariffs and inventory obsolescence [21] - SG&A ratio increased by 160 basis points, primarily due to the acquisition of Olive & June and higher freight costs [22] Business Segment Performance Changes - Home and outdoor segment net sales declined by 6.7%, impacted by lower online sales and softness in insulated beverageware [20] - Beauty and wellness segment net sales decreased by 0.5%, with organic sales down 13.9% due to competitive pressures and lower consumer demand [20][21] - Olive & June outperformed expectations with nearly $38 million in sales, contributing positively to the beauty and wellness segment [12][21] Market Data and Key Metrics Changes - International sales fell by 8.1%, reflecting challenges in the China market and tariff-related disruptions [12] - Organic D to C revenue increased by 21%, indicating a shift towards direct consumer engagement [13] Company Strategy and Development Direction - The company is focused on re-energizing brands, improving operational efficiency, and investing in innovation to drive growth [5][8] - Strategic priorities include enhancing consumer engagement, sharpening execution, and maximizing operational efficiency [9][10] - The company plans to maintain a disciplined approach to resource allocation, focusing on high-potential opportunities [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted a bifurcated economy, with high-income households spending robustly while lower-income consumers are cautious [5] - The company expects continued margin pressure due to consumer trade-down behavior and a more promotional environment [26] - Future growth is anticipated to be driven by product innovation and improved brand positioning [6][8] Other Important Information - The company is navigating tariff impacts, with an expected full-year impact of $50-$55 million on gross profit [19] - Inventory is projected to be between $475 million and $490 million at year-end, including estimated tariff-related costs [25] Q&A Session Summary Question: What is the status of declining categories and turnaround efforts? - Management is encouraged by growth in brands like Osprey and Olive & June, while acknowledging the need for improvement in underperforming categories [29][30] Question: Is this year's earnings guidance the bottom for earnings power? - Management emphasized a shift towards revenue growth and innovation investment, indicating a focus on long-term growth rather than immediate cost-cutting [32][33] Question: How is consumer-centric innovation being prioritized? - Management acknowledged past underinvestment in certain brands and is now focusing on innovation and consumer engagement to drive growth [38][40] Question: What are the major upcoming product releases? - While specific future innovations cannot be disclosed, brands like Osprey and Olive & June are expected to continue performing well with new product launches [41][42] Question: What is the outlook for operating margins? - Management believes that returning to revenue growth will facilitate margin expansion, but specific margin targets were not provided [85]

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Q3 Fiscal 2026 Results - Net sales revenue decreased by 34% from $5307 million in Q3 FY25 to $5128 million in Q3 FY26[16] - Organic net sales decreased by 108% with 33% or $173 million of the decline due to tariff-related revenue disruptions[17] - Gross margin decreased by 200 basis points from 489% in Q3 FY25 to 469% in Q3 FY26 primarily due to higher tariffs and less favorable inventory obsolescence[16, 17] - Adjusted EBITDA margin decreased by 350 basis points from 182% in Q3 FY25 to 147% in Q3 FY26 primarily due to lower gross profit margin and a higher SG&A rate[16, 17] - Adjusted diluted EPS decreased from $267 in Q3 FY25 to $171 in Q3 FY26 primarily due to lower adjusted operating income and higher interest expense[16, 17] - Free cash flow decreased from $561 million YTD FY25 to $288 million YTD FY26[16] Tariff Mitigation and Outlook - The company expects to reduce the remaining unmitigated tariff impact to less than $30 million in Fiscal 2026[30] - The company is implementing a dual sourcing strategy to lessen exposure to China manufacturing with a goal of 40% dual sourcing by the end of FY26 and 60% by the end of FY27[30, 33] - The company anticipates consolidated net sales of $1758 to $1773 billion for the full year Fiscal 2026[36] - The company projects adjusted diluted EPS of $325 to $375 for the full year Fiscal 2026[36]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __ to __ Commission File Number: 001-14669 helenoftroylogoa15.jpg HELEN OF TROY LIMITED (Exact name of registrant as specified in its cha ...