Helen of Troy (NASDAQ:HELE) Announces Quarterly Earnings Results, Beats Estimates By $0.29 EPS

Helen of Troy (NASDAQ:HELE) issued its quarterly earnings results on Thursday. The company reported $0.79 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.29, FiscalAI reports. The company had revenue of $440.93 million for the quarter, compared to the consensus estimate of $442.33 million. Helen of Troy had a positive return on equity of 7.78% and a negative net margin of 5.43%. Helen of Troy’s revenue was up 2.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.59 EPS. Helen of Troy updated its FY 2027 guidance to 3.600-4.150 EPS.

Here are the key takeaways from Helen of Troy’s conference call:

• Second-quarter results were ahead on profitability: sales rose 2.1% to meet expectations, while adjusted EPS and EBITDA exceeded the company’s base-business outlook. Home & Outdoor grew 9.2%, led by Osprey, OXO, and Hydro Flask.
• Management raised full-year adjusted EPS guidance to $3.60–$4.15 and free cash flow guidance to $120–$140 million, largely reflecting an estimated $0.30–$0.45 per-share net benefit from tariff refunds. The company narrowed its sales outlook to $1.768–$1.822 billion and maintained base-business EBITDA guidance.
• Balance-sheet and working-capital metrics improved, with total debt down $221 million year over year, net leverage falling to 3.0x, inventory down $49 million, and active inventory composition improving by seven percentage points. Management now targets net leverage of 2.7x or lower by fiscal year-end.
• Helen of Troy expects to receive $80.5 million in gross tariff refunds but plans to reinvest $66.5–$70.5 million in brands, packaging, product development, inventory cleanup, and organizational capabilities. Management said much of this spending is foundational and may not generate an immediate return, but is intended to improve fiscal 2028 performance.
• Beauty & Wellness remains uneven, with second-quarter sales down 4.5%, while Hydro Flask is driving the reduced Home & Outdoor outlook because of category saturation, promotional pressure, and channel inventory correction. Management also cited pressured consumers, higher fuel and commodity costs, supply risks, and a weaker expected cold-and-flu season as ongoing headwinds.

Helen of Troy Stock Down 0.2%

Shares of NASDAQ HELE opened at $26.51 on Friday. The business has a 50-day moving average price of $28.19 and a 200 day moving average price of $25.43. The stock has a market cap of $617.42 million, a PE ratio of -6.08 and a beta of 1.34. The company has a quick ratio of 0.81, a current ratio of 1.78 and a debt-to-equity ratio of 0.82. Helen of Troy has a 52-week low of $13.85 and a 52-week high of $31.98.

Helen of Troy News Summary

Here are the key news stories impacting Helen of Troy this week:

• Positive Sentiment: Helen of Troy reported fiscal Q2 adjusted EPS of $0.79, up from $0.59 a year earlier and well above the roughly $0.50–$0.51 consensus estimate. Improved margins, tariff-related benefits and strength in the Home & Outdoor segment supported the earnings beat. HELE Q2 Earnings Top Estimates on Margin Gains, Guidance Raised
• Positive Sentiment: Management raised fiscal 2027 profit expectations, including adjusted EPS guidance of $3.60 to $4.15, above the prior outlook and ahead of the approximately $3.41 analyst consensus. GAAP EPS guidance was raised to $3.63–$4.26, while sales guidance remains approximately $1.77–$1.82 billion. Helen of Troy Revises Fiscal 2027 Guidance
• Positive Sentiment: Home & Outdoor revenue increased 9.2% year over year, while gross margin expanded to 52.2% from 44.2%. The company also reported stronger operating cash flow and reduced total debt compared with the prior year. Helen of Troy Posts Q2 Sales and Raises Outlook
• Neutral Sentiment: Tariff refunds generated a gross pre-tax benefit of $26.9 million, but Helen of Troy reinvested about $23 million into the business. Management plans to use additional benefits for reinvestment while targeting net leverage of 2.7x or lower. Helen of Troy Raises Profit Outlook and Plans to Reinvest Tariff Refunds
• Negative Sentiment: Quarterly revenue of $440.9 million narrowly missed estimates, and Beauty & Wellness sales declined 4.5% to $213.0 million. The earnings benefit also included approximately $0.12 per share from tariff refunds, raising questions about how much of the margin improvement is recurring. Helen of Troy Tops Q2 EPS but Misses on Revenue

Analyst Upgrades and Downgrades

HELE has been the topic of a number of recent research reports. Canaccord Genuity Group upped their target price on shares of Helen of Troy from $25.00 to $26.00 and gave the stock a “hold” rating in a research note on Tuesday. UBS Group increased their price objective on shares of Helen of Troy from $28.00 to $29.00 and gave the company a “neutral” rating in a research report on Friday. Zacks Research cut shares of Helen of Troy from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. Weiss Ratings downgraded shares of Helen of Troy from a “sell (d)” rating to a “sell (d-)” rating in a research note on Tuesday, July 21st. Finally, Wall Street Zen raised Helen of Troy from a “hold” rating to a “strong-buy” rating in a report on Sunday, July 12th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $27.50.

Helen of Troy Company Profile

Helen of Troy Limited is a global consumer products company that develops, markets and distributes branded products across the home and outdoor, beauty, and health and wellness categories. Its portfolio includes household and organization products, drinkware and outdoor equipment, personal-care appliances, hair-care products, and consumer health products.

The company’s principal brands include OXO, Hydro Flask, Osprey, Drybar and Hot Tools. Helen of Troy also markets certain health and wellness products under licensed brands, including Vicks, Braun and Honeywell, as well as beauty products under selected licensed and owned brands.