Consumer goods maker Helen of Troy's Q2 sales fall less than expected

Overview

• Helen of Troy fiscal Q2 net sales decline 8.9%, less than analysts' expectations

• Q2 adjusted EPS beats consensus, despite significant asset impairment charges

• Company faces higher tariffs and asset impairments, affecting operating margins

Outlook

• Company expects fiscal 2026 net sales of $1.739-$1.780 bln

• Helen of Troy sees fiscal 2026 adjusted EPS of $3.75-$4.25

• Company expects third-quarter net sales of $491-$512 mln

Result Drivers

• SALES DECLINE - Net sales decreased due to lower demand in thermometers, heaters, and hair appliances, and reduced orders in insulated beverageware and home categories

• TARIFF IMPACT - Higher tariffs negatively affected cost of goods sold, reducing gross profit margin by approximately 200 basis points

• ACQUISITION OFFSET - Olive & June acquisition contributed $33.4 million to net sales, partially offsetting organic business declines

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "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 $26.50, about 4.2% below its October 8 closing price of $27.61

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw6vTJkka

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