Helen of Troy misses Q1 profit and revenue estimates

Overview

• Helen of Troy fiscal Q1 sales decline 10.8%, missing analyst expectations, per LSEG data

• Beauty products and home tools maker's adjusted EPS for fiscal Q1 misses consensus

• Co faces substantial operating loss due to non-cash asset impairment charges

Outlook

• Company expects Q2 fiscal 2026 net sales of $408-$432 mln

• Helen of Troy anticipates adjusted EPS of $0.45-$0.60 for Q2 fiscal 2026

• Company sees tariff-related impacts on operating income reduced to less than $15 mln

• Helen of Troy notes ongoing consumer spending softness and macro uncertainty

Result Drivers

• TARIFF IMPACT - Tariff-related impacts accounted for approximately 8 percentage points of the 10.8% revenue decline, per interim CEO Brian Grass

• ASSET IMPAIRMENT - Substantial operating loss due to non-cash asset impairment charges of $414.4 million

• ORGANIC BUSINESS DECLINE - Revenue decline driven by lower sales in Beauty & Wellness and Home & Outdoor segments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the appliances, tools & housewares peer group is "hold"

• Wall Street's median 12-month price target for Helen of Troy Ltd is $47.00, about 34% above its July 9 closing price of $31.00

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw90SVBBa