Helen of Troy(US:HELE)2025-10-09 13:00Q2 Fiscal 2026 Results - Net sales decreased by 8.9% to $431.8 million compared to $474.2 million in Q2 FY25 [18, 19] - Organic net sales decreased by 16.0%, with approximately 30% decline driven by tariff-related trade disruptions [19] - Adjusted diluted EPS declined 51.2% to $0.59 compared to $1.21 in Q2 FY25 [18, 19] - Adjusted EBITDA margin decreased by 340 basis points to 8.4% compared to 11.8% in Q2 FY25 [18, 19] - Gross margin decreased by 140 basis points to 44.2% compared to 45.6% in Q2 FY25 [18, 19] Tariff-Related Impacts and Mitigation - Approximately 53% of the consolidated net sales decline was tariff-related [30] - The company expects the unmitigated tariff impact to be less than $20 million in Fiscal Year 2026 [35] - The company is implementing a supplier diversification plan to reduce ongoing exposure to China tariffs, aiming for approximately 25% to 30% of consolidated Cost of Goods Sold (COGS) by the end of Fiscal Year 2026 [37] FY26 Outlook - The company expects net sales to be in the range of $1.739 billion to $1.780 billion, a decline of 8.8% to 6.7% [41] - Adjusted diluted EPS is expected to be in the range of $3.75 to $4.25, a decline of 47.7% to 40.7% [41] - The company anticipates interest expense in the range of $56 million to $57 million and a non-GAAP adjusted effective tax rate range of 15% to 16% [43]