Helen of Troy Limited (NASDAQ:HELE) reported fourth-quarter results on Thursday that came in ahead of analyst expectations, sending its shares sharply higher in premarket trading.
The stock jumped 6.53% before the open following the release.
Earnings top estimates despite revenue decline
The company posted adjusted earnings per share of $0.83, beating the consensus forecast of $0.75.
Revenue totaled $470.0 million, down 3.3% year-on-year from $485.9 million, but still above analyst expectations of $450.8 million.
“We closed fiscal 2026 with net sales, adjusted EPS, and cash flow at the better end of our expectations, reflecting our initial steps to stabilize brand performance and improve our financial position during a dynamic year,” said G. Scott Uzzell.
Outlook for fiscal 2027
Looking ahead, Helen of Troy guided for adjusted EPS of $3.25 to $3.75 for fiscal 2027, with a midpoint of $3.50 broadly in line with the analyst consensus of $3.27.
The company expects revenue between $1.751 billion and $1.822 billion, with a midpoint of $1.787 billion slightly above forecasts of $1.773 billion.
Profit impacted by impairment charges
On a GAAP basis, the company reported a diluted loss per share of -$2.41, compared with earnings of $2.22 in the same quarter last year, largely due to $79.2 million in non-cash asset impairment charges.
Gross margin declined by 400 basis points to 44.6%, affected by higher tariffs, unfavorable inventory obsolescence, and increased promotional and retail trade spending.
Cash flow and asset sale
Helen of Troy generated $111.3 million in operating cash flow and $103.1 million in free cash flow during the quarter.
The company also completed the sale of its distribution center in Southaven, Mississippi, in April 2026 for $82.0 million, booking a gain of $54.9 million in the first quarter of fiscal 2027.