Helen of Troy Limited (NASDAQ:HELE) delivered second-quarter fiscal 2026 results on Thursday that came in ahead of Wall Street estimates, with both adjusted earnings and revenue surpassing expectations despite continued pressure from tariffs and a soft consumer spending environment.
Shares climbed 1.41% in premarket trading following the announcement.
The branded consumer products company reported adjusted earnings per share of $0.59, above the $0.53 expected by analysts. Revenue reached $431.8 million, beating the consensus estimate of $416.78 million. However, both figures reflected year-over-year declines — adjusted EPS dropped 51.2% from $1.21, while revenue slid 8.9% from $474.2 million.
“While we are not satisfied with our results, the second quarter marked a step forward with net sales and adjusted earnings per share at the better end of our guidance,” said Brian L. Grass, Chief Financial Officer. “We continue to adapt to significant business disruption and cost headwinds, which are considered in our outlook for the remainder of the year.”
The company posted a GAAP loss of $13.44 per share, largely due to non-cash impairment charges of $326.4 million ($294.0 million after tax), which included a $292.6 million reduction in goodwill and a $33.8 million write-down in other intangible assets.
By business line, Home & Outdoor net sales fell 13.7% to $208.7 million, while Beauty & Wellness sales declined 4.0% to $223.1 million. The Beauty & Wellness segment was supported by a $33.4 million contribution from the Olive & June acquisition, which helped offset an 18.2% drop in organic sales.
Gross margin narrowed to 44.2% from 45.6% a year earlier, impacted mainly by higher tariffs that reduced consolidated gross profit margin by about 200 basis points.
For fiscal 2026, Helen of Troy revised its adjusted EPS forecast downward to $3.75–$4.25, below the analyst consensus of $4.58. Revenue guidance was reaffirmed at $1.74–$1.78 billion, in line with the consensus of $1.75 billion.
“I joined Helen of Troy last month with a deep admiration for its global brands, differentiated product solutions, solid financial foundation, and dedicated associates,” said CEO G. Scott Uzzell. “While I continue to listen and learn, I am confident in our ability to engineer a great comeback story.”
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