Helen of Troy Reports Q1 Fiscal 2026 Results

Helen Of Troy ( (HELE) ) has released its Q1 earnings. Here is a breakdown of the information Helen Of Troy presented to its investors.

Helen of Troy Limited is a global consumer products company known for its diverse portfolio of well-recognized brands in the home, outdoor, beauty, and wellness sectors. The company recently released its earnings report for the first quarter of fiscal 2026, highlighting a challenging period with a notable decline in sales and significant asset impairment charges.

In the latest earnings report, Helen of Troy reported a consolidated net sales decline of 10.8% to $371.7 million, with a GAAP diluted loss per share of $19.65. The company faced a substantial operating loss of $407 million, primarily due to non-cash asset impairment charges amounting to $414.4 million. Despite these challenges, cash flow from operations improved to $58.3 million, and free cash flow reached $45 million.

Key financial metrics showed a decrease in gross profit margin to 47.1% and an increase in the SG&A ratio to 45.1%. The company also experienced a decline in adjusted operating income and adjusted EBITDA, reflecting the impact of higher marketing expenses, unfavorable operating leverage, and consumer trade-down behavior. However, the acquisition of Olive & June contributed positively to the Beauty & Wellness segment, partially offsetting the declines.

Looking ahead, Helen of Troy’s management remains focused on mitigating tariff impacts and improving operational efficiency. The company anticipates consolidated net sales for the second quarter of fiscal 2026 to be between $408 million and $432 million, with adjusted diluted earnings per share ranging from $0.45 to $0.60. The management is optimistic about reducing the net tariff impact on operating income and is committed to enhancing the company’s performance through strategic initiatives.