Helen of Troy sees Q2 adjusted EPS 45c-60c, consensus $1.21

Sees revenue $408M-$432M, consensus $475.15M. The company said, “Due to evolving global tariff policies and the related business and macroeconomic uncertainty, the Company is only providing an outlook for the second quarter of fiscal 2026 at this time. The Company is continuing to assess the incremental tariff cost exposure in light of continuing changes to global tariff policies and the full extent of its potential mitigation plans, as well as the associated timing to implement such plans. The Company is also continuing to assess the disruptive impact that tariffs are having on the Company’s markets and retailer adaptation to tariff costs and uncertainty. To mitigate the Company’s risk of ongoing exposure to tariffs, it has initiated significant efforts to diversify its production outside of China into regions where it expects tariffs or overall costs to be lower and to source the same product in more than one region, to the extent it is possible and not cost-prohibitive. The Company now expects to reduce its cost of goods sold exposed to China tariffs to less than 25% by the end of fiscal 2026. The Company is also continuing to implement other mitigation actions, which include cost reductions from suppliers and price increases to customers on products subject to tariffs. In addition to the uncertainty from evolving global tariff policies, the Company expects unfavorable cascading impacts on inflation, consumer confidence, employment, and overall macroeconomic conditions, all of which are impossible to predict at this time and outside of the Company’s control. The Company adjusted its measures to reduce costs and preserve cash flow, outlined in its fourth quarter fiscal 2025 earnings release, as the environment continued to evolve. While the Company has resumed targeted growth investments, the Company remains disciplined in its approach given continued tariff volatility. The current measures in place include the following: Suspension of projects and capital expenditures that are not critical or in support of supplier diversification or dual sourcing initiatives; Actions to reduce overall personnel costs and pause most project and travel expenses remain in place; A resumption of optimized marketing, promotional, and new product development investments focused on opportunities with the highest returns; A resumption of targeted inventory purchases from China in the short term, with a measured approach in expectation of softer consumer demand in the short to intermediate term; and Actions to optimize working capital and balance sheet productivity. Through the combination of tariff mitigation actions and these additional cost reduction measures, the Company now believes it can reduce the net tariff impact on operating income to less than $15 million, based on tariffs currently in place.”