Consumer goods maker Helen of Troy's Q2 sales fall less than expected

Helen of Troy

09/10/2025 11:54

Overview

Helen of Troy fiscal Q2 net sales decline 8.9%, less than analysts' expectations

Q2 adjusted EPS beats consensus, despite significant asset impairment charges

Company faces higher tariffs and asset impairments, affecting operating margins

Outlook

Company expects fiscal 2026 net sales of $1.739-$1.780 bln

Helen of Troy sees fiscal 2026 adjusted EPS of $3.75-$4.25

Company expects third-quarter net sales of $491-$512 mln

Result Drivers

SALES DECLINE - Net sales decreased due to lower demand in thermometers, heaters, and hair appliances, and reduced orders in insulated beverageware and home categories

TARIFF IMPACT - Higher tariffs negatively affected cost of goods sold, reducing gross profit margin by approximately 200 basis points

ACQUISITION OFFSET - Olive & June acquisition contributed $33.4 million to net sales, partially offsetting organic business declines

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$431.80 mln
$417.60 mln (4 Analysts)
Q2 Adjusted EPS
Beat
$0.59
$0.53 (5 Analysts)
Q2 EPS
-$13.44


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the appliances, tools & housewares peer group is "hold"

Wall Street's median 12-month price target for Helen of Troy Ltd is $26.50, about 4.2% below its October 8 closing price of $27.61

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw6vTJkka

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)