Helen of Troy Limited reported third‑quarter fiscal 2026 results that included a 3.4% year‑over‑year decline in consolidated net sales to $512.8 million, a GAAP diluted loss per share of $3.65, and an adjusted diluted earnings per share of $1.71. The loss was driven in part by a $65.9 million pre‑tax non‑cash asset impairment charge that pushed the company into a GAAP loss for the quarter.
The revenue decline was largely attributable to a 6.7% drop in the Home & Outdoor segment, where Hydro Flask sales softened, offset by growth in Osprey. The Beauty & Wellness segment posted an operating loss of $8.3 million, including $41.9 million in impairment charges. Despite the overall decline, key brands such as OXO, Osprey, and Olive & June saw revenue growth, reflecting the company’s focus on consumer‑centric innovation and brand strength.
Gross profit margin contracted to 46.9% from 48.9% a year earlier, while adjusted operating margin fell to 12.9% from 16.6%. The compression is largely due to higher tariff costs and inventory rebalancing by retailers, which have increased the cost of goods sold and reduced pricing power.
Management lowered its full‑year guidance, projecting consolidated net sales of $1.758 billion to $1.773 billion, a GAAP diluted loss per share of $36.07 to $35.57, and an adjusted diluted EPS range of $3.25 to $3.75. The EPS guidance was reduced from the prior forecast of $3.75 to $4.25 and falls short of the consensus estimate of $4.02, signaling caution about near‑term demand and tariff headwinds.
CEO G. Scott Uzzell emphasized that the company is stabilizing the business through cost discipline, brand focus, and a consumer‑centric strategy. He highlighted growth in OXO, Osprey, and Olive & June, and reiterated the company’s commitment to innovation, talent investment, and supply‑chain diversification to mitigate tariff impacts. Investors reacted to the guidance cut and margin compression, underscoring concerns about the company’s ability to return to profitability in the second half of fiscal 2026.
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