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Helen Of Troy Limited (HELE)
NASDAQ:HELE
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Helen Of Troy (HELE) AI Stock Analysis

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Helen Of Troy

(NASDAQ:HELE)

Rating:44Neutral
Price Target:
$21.50
▼(-9.17%Downside)
Helen Of Troy's overall stock score is primarily affected by weak financial performance and bearish technical indicators. The negative valuation metrics further detract from the stock's attractiveness. While the earnings call provided some positive highlights, significant revenue declines and operational losses are concerning. The company's commitment to sustainability is a positive note but has minimal impact on the overall score.
Positive Factors
Brand Performance
Not all is doom and gloom as there are some bright spots in some parts of the portfolio such as Olive & June, Osprey, and Curlsmith.
Valuation
Current valuation for Helen Of Troy is considered very attractive as the company has reduced exposure to China and has been near-sourcing to Mexico and moving production to Vietnam.
Negative Factors
Consumer Spending
HELE continues to see sales pressured by consumer uncertainty leading to less spending on discretionary categories and trade down.
Leadership Uncertainty
The lack of a more permanent leadership team will keep the strategy/turnaround in limbo, thus pressuring investor interest.
Tariff Impact
Sales and earnings were meaningfully pressured in the quarter from tariff-related challenges.

Helen Of Troy (HELE) vs. SPDR S&P 500 ETF (SPY)

Helen Of Troy Business Overview & Revenue Model

Company DescriptionHelen of Troy Limited provides various consumer products in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments: Home & Outdoor, Health & Wellness, and Beauty. The Home & Outdoor segment offers food preparation tools and gadgets, storage containers, and organization products; coffee makers, grinders, manual pour overs, and tea kettles; household cleaning products, shower organization, and bathroom accessories; feeding and drinking products, child seating products, cleaning tools, and nursery accessories; insulated water bottles, hydration packs, drinkware, mugs, food containers, lunch containers, insulated totes, soft coolers, and accessories; and technical and outdoor sports packs, travel packs, luggage, daypacks, and everyday packs. The Health & Wellness segment provides thermometers, blood pressure monitors, pulse oximeters, nasal aspirators, and humidifiers; faucet mount water-filtration systems and pitcher-based water filtration systems; and air purifiers, heaters, fans, and humidifiers. The Beauty segment offers grooming brushes, tools, and decorative hair accessories; and shampoos, liquid hair styling, and treatment and conditioning products, as well as hair appliances. The company sells its products through mass merchandisers, drugstore chains, warehouse clubs, home improvement stores, grocery and specialty stores, beauty supply and e-commerce retailers, wholesalers, and various types of distributors, as well as directly to consumers under the OXO, Good Grips, Hydro Flask, Soft Works, OXO tot, OXO Brew, OXO Strive, OXO Outdoor, Osprey, PUR, Honeywell, Braun, Vicks, Drybar, Hot Tools, Revlon, and Bed Head brands. Helen of Troy Limited was incorporated in 1968 and is headquartered in El Paso, Texas.
How the Company Makes MoneyHelen Of Troy generates revenue primarily through the sale of consumer products across its three main business segments: Health & Home, Housewares, and Beauty. The company distributes its products through various channels, including mass retailers, specialty stores, warehouse clubs, online platforms, and directly to consumers. Key revenue streams include sales of health and wellness products like air purifiers and humidifiers, housewares such as kitchen tools and storage solutions, and beauty appliances including hair styling tools and accessories. Strategic partnerships and licensing agreements with brand owners, such as Procter & Gamble for the Vicks and Braun brands, also contribute significantly to its earnings by allowing the company to leverage established brand equity and expand its product offerings.

Helen Of Troy Earnings Call Summary

Earnings Call Date:Jul 10, 2025
(Q1-2026)
|
% Change Since: -23.65%|
Next Earnings Date:Oct 01, 2025
Earnings Call Sentiment Negative
The earnings call highlighted strong free cash flow and positive growth in specific brands like Osprey and Olive & June. However, significant revenue declines, tariff-related disruptions, consumer trade-down behavior, and a substantial operating loss overshadowed these achievements. The sentiment of the call is negative due to these prevailing challenges.
Q1-2026 Updates
Positive Updates
Strong Free Cash Flow
The company reported strong free cash flow of $45 million compared to $16 million in the same period last year.
US Point of Sale Growth
US point of sale unit growth was observed in eight out of eleven key brands in the first quarter.
Osprey Revenue and Market Leadership
Osprey revenue grew by 3.7% with point of sale growth of 3.8%, maintaining the number one market share in the US technical pack market.
Curlsmith and Olive & June Performance
Curlsmith saw growth driven by new liquid innovations, while Olive & June continued to exceed expectations in revenue and profitability.
Negative Updates
Significant Revenue Decline
Consolidated net sales decreased by 10.8%, with organic net sales decreasing by 17.3% excluding the impact of Olive & June.
Tariff-Related Disruptions
Tariff-related impacts accounted for approximately 8 percentage points of the 10.8% consolidated revenue decline.
Consumer Trade-Down Behavior
The company observed consumer trading down with average price compression of 3% to 4% in the US business, impacting revenue and profitability.
Adjusted Operating Margin Decline
Adjusted operating margin decreased by 600 basis points to 4.3%.
GAAP Operating Loss
The company reported a GAAP operating loss of $407 million, primarily due to noncash impairment charges.
Company Guidance
During the Helen of Troy Limited First Quarter 2026 Earnings Call, the company provided guidance for the second quarter of fiscal 2026. They expect net sales between $408 and $432 million, implying a decline of 14% to 9%. For their business segments, they anticipate a decline in net sales for Home and Outdoor by 16.5% to 11.5% and for Beauty and Wellness by 11.3% to 6.1%, including an expected contribution from Olive and June of $26 to $27 million. The adjusted diluted EPS is projected to range from $0.45 to $0.60. The company cited ongoing tariff-related disruptions and demand softness as key factors affecting their outlook. Additionally, they are implementing strategic price increases of 7% to 10% across their portfolio to offset tariff impacts and expect an adjusted SG&A ratio to normalize to approximately 37% to 38% for the remaining quarters of the fiscal year.

Helen Of Troy Financial Statement Overview

Summary
Helen Of Troy faces significant challenges with declining revenues and profitability margins. The balance sheet is relatively stable with manageable leverage, but fluctuating cash flows and negative net profit margins highlight financial instability.
Income Statement
40
Negative
The company has experienced a declining revenue trend over the last few years, with revenue falling from $2.22 billion in 2022 to $1.86 billion in the TTM. Additionally, the net profit margin turned negative in the TTM, indicating a lack of profitability. The gross profit margin has also decreased, and EBIT and EBITDA margins have significantly declined into negative territory, highlighting operational challenges.
Balance Sheet
55
Neutral
Helen Of Troy's balance sheet shows a relatively stable equity base, with the equity ratio improving in the TTM to approximately 46.3%. However, the debt-to-equity ratio is relatively low compared to prior periods, signaling manageable leverage. Nevertheless, the declining stockholders' equity and increasing liabilities indicate potential future risks.
Cash Flow
60
Neutral
The cash flow statement shows a positive free cash flow in the TTM, albeit a decrease from prior periods. The operating cash flow to net income ratio is strong due to the negative net income, indicating good cash generation capability despite income losses. There is a notable decline in free cash flow compared to 2021, which raises concerns about sustaining cash flow levels.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.91B2.01B2.07B2.22B2.10B
Gross Profit914.41M948.66M899.35M953.19M927.30M
EBITDA198.63M313.61M266.28M313.46M322.28M
Net Income123.75M168.59M143.27M223.76M253.95M
Balance Sheet
Total Assets3.13B2.84B2.91B2.82B2.26B
Cash, Cash Equivalents and Short-Term Investments18.87M18.50M29.07M33.38M45.12M
Total Debt962.95M702.93M977.08M856.96M381.98M
Total Liabilities1.45B1.20B1.42B1.50B1.02B
Stockholders Equity1.68B1.64B1.49B1.33B1.24B
Cash Flow
Free Cash Flow83.14M269.42M33.38M62.78M215.44M
Operating Cash Flow113.21M306.07M208.24M140.82M314.11M
Investing Cash Flow-263.09M5.45M-319.33M-438.91M-98.67M
Financing Cash Flow150.25M-322.09M106.78M286.35M-194.78M

Helen Of Troy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price23.67
Price Trends
50DMA
27.49
Negative
100DMA
35.22
Negative
200DMA
49.76
Negative
Market Momentum
MACD
-1.79
Positive
RSI
43.39
Neutral
STOCH
36.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HELE, the sentiment is Negative. The current price of 23.67 is below the 20-day moving average (MA) of 26.51, below the 50-day MA of 27.49, and below the 200-day MA of 49.76, indicating a bearish trend. The MACD of -1.79 indicates Positive momentum. The RSI at 43.39 is Neutral, neither overbought nor oversold. The STOCH value of 36.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HELE.

Helen Of Troy Risk Analysis

Helen Of Troy disclosed 28 risk factors in its most recent earnings report. Helen Of Troy reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Helen Of Troy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$4.26B25.7822.16%2.90%10.32%18.55%
EPEPC
69
Neutral
$1.25B15.535.53%2.26%-2.11%-28.79%
NUNUS
61
Neutral
$412.10M-4.93%3.32%-11.85%-1080.00%
SPSPB
57
Neutral
$1.38B26.822.79%3.14%1.46%-95.70%
57
Neutral
HK$25.90B4.13-2.03%5.77%-0.31%-67.64%
NWNWL
54
Neutral
$2.34B-8.46%5.73%-6.09%17.71%
44
Neutral
$543.35M5.74-23.99%-4.39%-326.42%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HELE
Helen Of Troy
23.67
-33.40
-58.52%
IPAR
Inter Parfums
132.65
-2.41
-1.78%
NWL
Newell Brands
6.11
0.05
0.83%
NUS
Nu Skin
9.03
-0.90
-9.06%
SPB
Spectrum Brands Holdings
58.24
-23.83
-29.04%
EPC
Edgewell Personal Care
26.60
-12.11
-31.28%

Helen Of Troy Corporate Events

Business Operations and Strategy
Helen Of Troy Releases 2025 Sustainability Report
Positive
Jun 5, 2025

On June 5, 2025, Helen of Troy Limited released its fiscal year 2025 Sustainability Report, highlighting the company’s ongoing commitment to sustainable practices. The report, available on the company’s website, outlines the company’s efforts and achievements in sustainability, potentially impacting its operations and market positioning by reinforcing its dedication to environmental and social responsibility.

The most recent analyst rating on (HELE) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Helen Of Troy stock, see the HELE Stock Forecast page.

Executive/Board Changes
Helen Of Troy Announces Leadership Changes
Neutral
May 6, 2025

On May 2, 2025, Helen of Troy Limited announced the departure of Noel Geoffroy as Chief Executive Officer and director, with Brian Grass appointed as interim CEO and Tracy Scheuerman as interim CFO. The Board has engaged an executive search firm to find a permanent CEO. These leadership changes aim to enhance the company’s long-term brand health and shareholder value. Mr. Grass and Ms. Scheuerman have extensive experience within the company, having held various financial leadership roles. The company emphasizes its commitment to sustainable growth and long-term shareholder value creation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025