Helen of Troy(US:HELE) ZACKSยท2025-10-07 13:51Core Insights - Helen of Troy Limited (HELE) is expected to report a decline in both revenue and earnings for the second quarter of fiscal 2026, with projected revenues of $418.8 million, reflecting an 11.7% decrease year-over-year, and earnings estimated at $0.54 per share, indicating a 55.4% decline from the previous year [1][9]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for HELE's quarterly revenues is $418.8 million, which is a decrease of 11.7% from the prior-year quarter [1][9]. - The earnings estimate for HELE stands at 54 cents per share, representing a 55.4% decline compared to the same quarter last year [2][9]. Challenges Facing the Company - HELE is experiencing pressure from tariff-related disruptions and global trade uncertainties, leading to order cancellations and reduced imports from China as retailers adapt to higher costs [3]. - The company is facing a challenging macroeconomic environment characterized by weaker consumer and retailer demand, with a projected 17.3% drop in organic volumes for the fiscal second quarter [4]. - Rising Selling, General and Administrative (SG&A) expenses are a concern, with an expected 310-basis point increase in adjusted SG&A as a percentage of sales to 38.9% in the fiscal second quarter [5]. Strategic Initiatives - Despite the challenges, HELE's Leadership Brands remain a strong point, with a focus on operational excellence and portfolio optimization helping to stabilize performance [6]. - The company is diversifying its sourcing outside of China to mitigate tariff exposure and has initiated Project Pegasus, which is delivering cost savings [3][6]. Earnings Prediction Model - The current model does not predict an earnings beat for HELE, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [7].