Helen of Troy Beats Q2 Results, But Shares Drop 7% on Weak Guidance

Helen of Troy Limited, trading on NASDAQ under the symbol HELE, is a global marketer of branded consumer products. The company offers a wide range of products, including health and home solutions, beauty products, and housewares. Despite its diverse portfolio, HELE faces competition from other consumer goods companies like Procter & Gamble and Unilever.

On October 9, 2025, HELE reported an earnings per share (EPS) of -$13.44, which was significantly below the estimated EPS of $0.54. This negative EPS reflects the company's ongoing challenges, as highlighted by its price-to-earnings (P/E) ratio of approximately -0.75. A negative P/E ratio indicates that the company has been experiencing losses over the trailing twelve months.

HELE's actual revenue for the period was approximately $431.78 million, falling short of the estimated $504.98 million. This decline in revenue is consistent with the reported decrease in consolidated net sales revenue, which dropped to $431.8 million from $474.2 million in the same period of the previous fiscal year. The company's price-to-sales ratio of about 0.27 suggests that investors are paying $0.27 for every dollar of sales, reflecting the market's cautious stance.

The company's gross profit margin decreased to 44.2% from 45.6%, indicating a reduction in profitability. Additionally, the operating margin was reported at a negative 73.1%, which includes certain pre-tax charges. Despite these challenges, HELE maintains a low debt-to-equity ratio of about 0.07, indicating a low level of debt relative to equity, and a current ratio of approximately 1.71, suggesting good liquidity to cover short-term liabilities.

HELE's enterprise value to sales ratio is approximately 0.29, reflecting the company's valuation relative to its revenue. The enterprise value to operating cash flow ratio of around 5.83 indicates that the company is generating a reasonable amount of cash flow relative to its enterprise value. However, the earnings yield of approximately -1.34% further highlights the negative earnings situation, underscoring the financial challenges the company faces.

• The consensus price target for Helen of Troy Limited (NASDAQ:HELE) has decreased from $49.25 a year ago to $27 last month, indicating a bearish sentiment among analysts.
• Recent financial performance shows a decline, with earnings of $0.41 per share missing the Zacks Consensus Estimate of $0.91 per share, and a year-over-year revenue drop from $416.8 million to $371.7 million.
• Despite challenges, D.A. Davidson sets an optimistic price target of $251, and insider buying activity suggests confidence in the company's future prospects.

Helen of Troy Limited (NASDAQ:HELE) is a diversified consumer products company with a wide range of brands in segments like Home & Outdoor, Health & Wellness, and Beauty. The company operates globally, offering products such as kitchen gadgets, health monitoring devices, and beauty tools. Despite its broad portfolio, the stock's consensus price target has seen a decline over the past year.

A year ago, analysts had a more optimistic outlook for Helen of Troy, with an average price target of $49.25. However, this target has decreased over time, dropping to $28 a quarter ago and further to $27 last month. This trend indicates a more cautious or bearish sentiment among analysts regarding the company's stock performance.

Several factors may have contributed to this shift in sentiment. Helen of Troy's recent financial performance has been underwhelming, with first-quarter fiscal 2026 earnings falling short of estimates. The company reported earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.91 per share. This performance also marks a decline from the previous year's earnings of $0.99 per share.

The company's revenue also experienced a year-over-year decline, with consolidated net sales revenue of $371.7 million, down from $416.8 million in the same period of the previous fiscal year. Tariff disruptions, weak sales in China, and pressure from U.S. consumers trading down have contributed to this underperformance. Despite these challenges, D.A. Davidson has set a price target of $251 for the stock.

Investors and stakeholders are closely monitoring Helen of Troy's strategic initiatives and market positioning. The company is taking steps to reduce exposure to China and remains cash flow positive. Additionally, there is notable insider buying activity, suggesting confidence in the company's future prospects. As the company prepares to announce its second-quarter earnings, investors are keenly awaiting the results to gauge its financial performance and future outlook.

• Brian Grass, CEO of Helen of Troy Limited (NASDAQ: HELE), purchased 10,000 shares, increasing his total ownership.
• HELE's leadership is focused on navigating current market challenges.
• The company's financial metrics indicate a strong liquidity position and a conservative approach to debt.

Helen of Troy Limited (NASDAQ: HELE) is a consumer products company known for its diverse range of brands in health, home, and beauty. The company operates in a competitive market, with rivals like Procter & Gamble and Unilever. On July 15, 2025, Brian Grass, the CEO of HELE, purchased 10,000 shares at $21.47 each, increasing his total ownership to 135,932 shares.

This purchase by Brian Grass comes shortly after HELE's Q1 2026 earnings call on July 10, 2025. The call, which included key figures like Anne Rakunas and Tracy Schuerman, likely discussed the company's financial performance and strategic plans. HELE's leadership remains committed to navigating current challenges.

HELE's financial metrics reveal a mixed picture. The price-to-sales ratio of 0.25 indicates that investors pay 25 cents for every dollar of sales, while the enterprise value to sales ratio is 0.27. These figures suggest that the market values HELE's sales relatively low

HELE maintains a strong liquidity position with a current ratio of 1.70, indicating it can cover short-term liabilities. The debt-to-equity ratio of 0.05 reflects a conservative approach to debt, which may provide stability in uncertain times. The enterprise value to operating cash flow ratio of 3.41 highlights the company's ability to generate cash flow relative to its enterprise value.

• Peter Grom from UBS set a price target of $29 for NASDAQ:HELE, suggesting a potential increase of about 27% from its then trading price.
• The company's first-quarter fiscal 2026 results were disappointing, with earnings per share falling by 58.6% and sales decreasing by 10.8%.
• Helen of Troy faces major challenges including tariff uncertainty, weak consumer demand, and a highly leveraged balance sheet, leading to a Sell rating with a fair value estimated at $19 per share.

Helen of Troy Limited (NASDAQ:HELE) is a company known for its consumer healthcare and home products, including brands like OXO and PUR. On July 11, 2025, Peter Grom from UBS set a price target of $29 for HELE, suggesting a potential increase of about 27% from its then trading price of $22.84. However, recent financial results have raised concerns among investors.

The company's first-quarter fiscal 2026 results were disappointing, leading to a sharp 22.7% drop in its share price during after-hours trading. Earnings per share fell by 58.6% to $0.41, missing estimates due to lower income and higher interest expenses. Sales also decreased by 10.8% to $371.7 million, impacted by weak demand and tariff-related issues.

The gross margin declined by 160 basis points to 47.1%, pressured by trade-down, higher costs, and mix shifts. The underperformance was primarily due to significant tariff-related disruptions, including the cancellation of direct import orders from China and elevated inventory levels. These challenges have led to a Sell rating for the company, with a fair value estimated at $19 per share.

Helen of Troy faces major challenges, including tariff uncertainty, weak consumer demand, and a heavy reliance on large retailers, which limits its pricing power. The company is also burdened with a highly leveraged balance sheet, declining margins, and poor cash flow generation, increasing downside risk for shareholders. Despite these challenges, the stock is currently priced at $22.54, with a market capitalization of approximately $517.4 million.

Helen of Troy (NASDAQ:HELE) shares nosedived over 22% today after the consumer products company posted a sharp earnings miss and issued a bleak forecast for the current quarter, with tariff-related pressures dragging heavily on performance.

For its fiscal first quarter, the company reported adjusted earnings of just $0.41 per share—less than half of the $0.93 analysts had anticipated. Revenue also came in well below expectations, falling 10.8% year-over-year to $371.7 million versus the $400.4 million consensus. Tariff impacts alone accounted for roughly 8 percentage points of that revenue drop.

The decline wasn’t limited to external headwinds. Organic sales fell 17%, weighed down by weaker demand across key product lines. The Beauty & Wellness division saw a sharp pullback in sales of thermometers, fans, and hair appliances, while the Home & Outdoor segment suffered from softer demand for insulated beverageware and other home goods.

Looking ahead, the company’s second-quarter forecast only deepened investor concerns. Revenue is expected to range between $408 million and $432 million, far below the Street’s $475 million estimate. Projected earnings per share of $0.45 to $0.60 also fall significantly short of the $1.21 analysts had been expecting.

With core categories under pressure and tariffs adding to the strain, Helen of Troy faces an uphill battle to regain investor confidence in the near term.

Helen of Troy Limited (NASDAQ:HELE), a company renowned for its diverse range of consumer products in the home, outdoor, beauty, and wellness sectors, recently encountered significant financial difficulties. On July 10, 2025, HELE reported an earnings per share (EPS) of $0.41, starkly below the anticipated $0.91. This underperformance was further highlighted by its actual revenue of $371.7 million, missing the forecasted $397.1 million.

Following these disappointing results, HELE's stock took a substantial hit, plummeting by 25%. The company attributed this downturn to a slowdown in sales and the negative impact of new U.S. tariffs. In its fiscal 2026 first-quarter report, Helen of Troy disclosed an adjusted EPS of $0.41, significantly lower than the expected figures and marking a 54.95% decrease from the previous year's $0.99 per share. Revenue also declined by 11% year-over-year to $371.7 million, driven by decreased demand in its Beauty & Wellness and Home & Outdoor product lines. Despite this quarter's shortfall, it's noteworthy that Helen of Troy has exceeded consensus revenue estimates in three of the last four quarters.

The financial metrics of Helen of Troy paint a complex picture. With a price-to-sales ratio of approximately 0.30 and an enterprise value to sales ratio of about 0.32, the company's valuation metrics suggest a cautious investor approach, especially in light of its negative price-to-earnings ratio and earnings yield. However, a low debt-to-equity ratio of around 0.05 and a current ratio of approximately 1.70 indicate a solid liquidity position and minimal debt financing. Despite these strengths, the ongoing uncertainty regarding tariffs and economic conditions has led Helen of Troy to withhold a full-year financial outlook.

• Helen of Troy Limited reported significantly lower EPS and revenue than expected, leading to a 25% stock price decline.
• The company's financial challenges are attributed to slowing sales and the impact of new U.S. tariffs, with a notable decrease in demand across its Beauty & Wellness and Home & Outdoor product lines.
• Despite a mixed financial picture, Helen of Troy demonstrates strong liquidity and minimal debt financing, though it refrains from providing a full-year financial outlook due to economic uncertainties.

• Helen of Troy Limited (NASDAQ:HELE) reported earnings per share (EPS) of $2.17, missing the estimated $2.61.
• The company generated revenue of approximately $530.7 million, surpassing the estimated $485.9 million.
• Despite the revenue beat, shares of HELE experienced a 4% decline due to a decrease in quarterly sales and a lowered full-year profit forecast.

Helen of Troy Limited (NASDAQ:HELE) is a company known for its household and beauty products. On January 8, 2025, HELE reported its earnings for the third quarter, which ended in November 2024. The company announced earnings per share (EPS) of $2.17, which fell short of the estimated $2.61. Despite this, HELE generated revenue of approximately $530.7 million, surpassing the estimated $485.9 million.

During the Q3 2025 earnings conference call, key company figures such as Sabrina McKee, Noel Geoffroy, and Brian Grass provided insights into the company's financial performance. Analysts from firms like CJS Securities and UBS participated, highlighting the importance of the event. The call revealed that despite the revenue beat, shares of HELE experienced a 4% decline due to a decrease in quarterly sales and a lowered full-year profit forecast.

HELE's financial performance can be further understood by examining its top- and bottom-line numbers. The company achieved a gross profit of $259.3 million and an operating income of $75.1 million. The cost of revenue was $271.4 million, leading to a net income of $49.6 million. These figures provide a comprehensive view of HELE's business operations during the quarter.

The company's earnings call also addressed the reduction in demand for beauty and wellness items, which contributed to the lowered profit forecast. Despite the challenges, HELE's revenue performance exceeded market expectations, offering a mixed picture of its financial health.