Helen of Troy Reports Second Quarter Fiscal 2027 Results
HELEN OF TROY LTD (HELE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Helen of Troy Reports Second Quarter Fiscal 2027 Results Consolidated Net Sales Growth of 2.1% GAAP Net Income of $4.6 Million; Diluted EPS of $0.19 Adjusted Income (1) of $19.0 Million; Adjusted Diluted EPS (1) of $0.79 Cash Flow From Operations of $57.1 Million; Ad
How this was made
The 30-second read
Why it matters
The raised guidance suggests a healthier outlook, but ongoing cost inflation and SG&A increases warrant caution.
Market read
The earnings release provides fresh data for traders; the raised guidance could trigger short‑term buying pressure.
What to watch
Higher SG&A spending and inflationary cost pressures could offset margin gains.
Helen of Troy Reports Second Quarter Fiscal 2027 Results: Consolidated Net Sales Growth of 2.1%; GAAP Net Income of $4.6 Million; Adjusted Diluted EPS of $0.79; Updates Fiscal 2027 Outlook
Second-quarter sales grew 2.1%, adjusted operating income increased 40.9%, adjusted EBITDA increased to $49.4 million, and the company raised major full-year profit and cash-flow outlook measures. Results also reflected tariff refunds, while Beauty & Wellness sales declined 4.5% and the company cited continued discretionary-category softness and promotional competition.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended August 31, 2026 sales revenue, netGAAP | $440.9M | – | 2.1% |
| Three months ended August 31, 2026 gross profitGAAP | $230.1M | – | – |
| Three months ended August 31, 2026 gross profit marginGAAP | 52.2% | – | increased 800 basis points |
| Three months ended August 31, 2026 cost of goods soldGAAP | $210.8M | – | – |
| Three months ended August 31, 2026 SG&AGAAP | $204.7M | – | – |
| Three months ended August 31, 2026 SG&A ratioGAAP | 46.4% | – | – |
| Three months ended August 31, 2026 restructuring chargesGAAP | $2.54M | – | – |
| Three months ended August 31, 2026 operating income (loss)GAAP | $22.92M | – | – |
| Three months ended August 31, 2026 operating marginGAAP | 5.2% | – | – |
| Three months ended August 31, 2026 adjusted operating incomenon-GAAP | $37.95M | – | 40.9% |
| Three months ended August 31, 2026 adjusted operating marginnon-GAAP | 8.6% | – | an increase of 240 basis points |
| Three months ended August 31, 2026 interest expenseGAAP | $10.89M | – | – |
| Three months ended August 31, 2026 income tax expense (benefit)GAAP | $9.16M | – | – |
| Three months ended August 31, 2026 net income (loss)GAAP | $4.63M | – | – |
| Three months ended August 31, 2026 diluted earnings (loss) per shareGAAP | $0.19 | – | – |
| Three months ended August 31, 2026 adjusted incomenon-GAAP | $19.00M | – | 40.3% |
| Three months ended August 31, 2026 adjusted diluted earnings per sharenon-GAAP | $0.79 | – | 33.9% |
| Three months ended August 31, 2026 adjusted EBITDAnon-GAAP | $49.39M | – | – |
| Three months ended August 31, 2026 adjusted EBITDA marginnon-GAAP | 11.2% | – | – |
| Three months ended August 31, 2026 net cash provided by operating activitiesGAAP | $57.1M | – | – |
| Six months ended August 31, 2026 sales revenue, netGAAP | $843.0M | – | – |
| Six months ended August 31, 2026 gross profitGAAP | $415.0M | – | – |
| Six months ended August 31, 2026 gross profit marginGAAP | 49.2% | – | – |
| Six months ended August 31, 2026 operating income (loss)GAAP | $83.27M | – | – |
| Six months ended August 31, 2026 operating marginGAAP | 9.9% | – | – |
| Six months ended August 31, 2026 net income (loss)GAAP | $40.39M | – | – |
| Six months ended August 31, 2026 diluted earnings (loss) per shareGAAP | $1.69 | – | – |
| Six months ended August 31, 2026 adjusted operating incomenon-GAAP | $54.03M | – | – |
| Six months ended August 31, 2026 adjusted EBITDAnon-GAAP | $74.92M | – | – |
| Six months ended August 31, 2026 adjusted diluted earnings per sharenon-GAAP | $0.96 | – | – |
| Six months ended August 31, 2026 net cash provided by operating activitiesGAAP | $56.45M | – | – |
| Six months ended August 31, 2026 free cash flownon-GAAP | $38.34M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Home & OutdoorGrowth across all brands was driven by strong demand for technical, travel and lifestyle packs, increased international sales, assortment and distribution gains, higher closeout channel sales, and incremental sales from new product launches. | $227.9M | – | 9.2% |
| Beauty & WellnessThe decline reflected lower Beauty hair appliances, prestige hair care and water filtration sales. Growth in heaters, thermometers and nail care, as well as new product launches, partly offset the decline. | $213.0M | – | (4.5)% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal 2027 Annual Outlook outlook
- RevenueConsolidated net sales: $1.768 – $1.822 BN; (1.0)% – 2.0%
- Tax rateEffective tax rate (GAAP): 28.9% – 32.2%; Adjusted effective tax rate (Non-GAAP): 24.0% – 27.0%
- NoteHome & Outdoor net sales: $851 – $876 MM; 2.2% – 5.2%
- NoteBeauty & Wellness net sales: $917 – $946 MM; (3.8)% – (0.8)%
- NoteNet Income: $88 – $103 MM
- NoteAdjusted EBITDA: $203 – $210 MM; 9.1% – 13.0%
- NoteInterest expense: $43.1 – $45.1 MM
- NoteDiluted EPS (GAAP): $3.63 – $4.26
- NoteAdjusted diluted EPS (non-GAAP): $3.60 – $4.15; 1.4% – 16.9%
- NoteWeighted average diluted shares outstanding: 24.2 MM
- NoteOperating cash flow (GAAP): $163 – $179 MM
- NoteFree cash flow (non-GAAP): $120 – $140 MM
- NoteNet leverage ratio: ≤ 2.7x by end of FY27
- NoteCapital expenditures: $39 million to $43 million
Capital returns
- Payments for repurchases of common stock for the six months ended August 31, 2026: $1,262 (in thousands), compared to $1,482 (in thousands).
- Future share repurchases are unknown and cannot be reasonably estimated; therefore, they are not included in the Company’s outlook.
What drove it
- Consolidated gross profit margin increased 800 basis points to 52.2%, primarily reflecting the favorable impact of tariff refunds, net of higher tariff costs, totaling approximately 560 basis points, and lower overall retail trade and promotional expense year-over-year.
- Second-quarter tariff refunds were gross pre-tax refunds of $26.9 million. Approximately $23 million was reinvested in the quarter, resulting in a net pre-tax benefit of approximately $4.0 million and a diluted EPS benefit of approximately $0.12 using the estimated annual adjusted effective tax rate.
- The company expects Phase 1, Phase 2 and Phase 3 tariff refunds totaling approximately $80.5 million and plans to reinvest approximately 83% to 88% into growth investments, resulting in an estimated pre-tax income net benefit of approximately $10 million to $14 million.
- Adjusted operating income growth reflected tariff refunds net of higher tariff costs, lower retail trade and promotional expense, and favorable operating leverage, partly offset by personnel, packaging, product-cost, marketing, and inventory-obsolescence pressures.
- Interest expense decreased to $10.9 million from $14.2 million, primarily reflecting lower average borrowings outstanding and a lower average effective interest rate inclusive of interest-rate swaps.
Concerns
- Beauty & Wellness net sales revenue decreased $10.1 million, or 4.5%, driven by declines in hair appliances, prestige hair care and water filtration.
- The outlook reflects continued inflationary pressures, softness in discretionary categories, conservative retailer inventory management, and an increasingly competitive and promotional landscape.
- The company expects higher product costs from commodity inputs, unfavorable Chinese Yuan fluctuations, inbound and outbound freight expense, and costs to secure goods to avoid supply disruption.
- The company cited heightened geopolitical and supply-chain risks, including ongoing tensions in the Middle East, as sources of energy, commodity, input-cost, and supply-chain uncertainty.
- Second-quarter SG&A ratio increased to 46.4%, reflecting reinvestment of tariff refunds, higher personnel expense, packaging-related costs, divestiture litigation costs, and higher marketing expense.
What to watch
- Delivery against the revised consolidated net-sales outlook of $1.768 – $1.822 BN, including Home & Outdoor net sales of $851 – $876 MM and Beauty & Wellness net sales of $917 – $946 MM.
- The extent and returns of the planned reinvestment of approximately 83% to 88% of tariff refunds into brand and demand creation, organizational investments, and inventory composition.
- Progress toward operating cash flow of $163 – $179 MM, free cash flow of $120 – $140 MM, and net leverage ratio of ≤ 2.7x by end of FY27.
- Further inventory reduction and capital expenditures of $39 million to $43 million, focused on product innovation, distribution-center network optimization, and supply-chain diversification.
- Consumer demand, retail replenishment behavior, competitive marketing activity, tariff rates, commodity costs, freight, foreign currency, and illness incidence.
Balance sheet and cash flow
- Cash and cash equivalents as of August 31, 2026: $22,583 (in thousands), compared to $22,370 (in thousands).
- Receivables, net as of August 31, 2026: $327,758 (in thousands), compared to $350,231 (in thousands).
- Inventory as of August 31, 2026: $480,325 (in thousands), compared to $528,893 (in thousands).
- Total debt as of August 31, 2026: $672,622 (in thousands), compared to $893,220 (in thousands).
- Net debt repayments for the six months ended August 31, 2026: $(109,000) (in thousands), compared to $(23,231) (in thousands).
- Accounts receivable turnover was 67.6 days, compared to 72.2 days.
- Capital and intangible asset expenditures for the six months ended August 31, 2026 were $18,111 (in thousands), compared to $24,832 (in thousands).
- Net leverage ratio was 3.03 as of August 31, 2026.
Analysis
Helen of Troy delivered second-quarter net sales revenue of $440,926 (in thousands), up 2.1% from $431,781 (in thousands). Growth was concentrated in Home & Outdoor, where revenue rose 9.2% to $227,920 (in thousands), while Beauty & Wellness revenue declined 4.5% to $213,006 (in thousands). Home & Outdoor benefited from demand for technical, travel and lifestyle packs, international sales, distribution gains, closeout sales and launches. Beauty & Wellness remained pressured by softer consumer demand, consumer price sensitivity, competition, reduced replenishment orders and lower closeout sales in several categories.
Reported profitability improved sharply against a prior-year period affected by asset impairments. Gross profit margin rose to 52.2% from 44.2%, with tariff refunds net of higher tariff costs contributing approximately 560 basis points and lower retail trade and promotional expense also helping. GAAP operating income was $22,919 (in thousands), compared with an operating loss of $(315,717) (in thousands), and GAAP diluted EPS was $0.19 compared with $(13.44). Prior-year results included $326,394 (in thousands) of asset impairment charges in the quarter, which materially affects comparability.
Underlying measures also improved. Adjusted operating income increased 40.9% to $37,947 (in thousands), adjusted operating margin rose to 8.6% from 6.2%, adjusted EBITDA was $49,388 (in thousands) versus $36,163 (in thousands), and adjusted diluted EPS increased 33.9% to $0.79. The improvement came despite a higher 46.4% SG&A ratio, as the company reinvested tariff refunds and absorbed higher personnel, packaging and marketing expense, divestiture litigation costs, product-cost inflation and a less favorable inventory-obsolescence effect.
Cash generation and leverage improved over the six-month period. Net cash provided by operating activities was $56,451 (in thousands), free cash flow was $38,340 (in thousands), inventory was $480,325 (in thousands), and total debt was $672,622 (in thousands). Net debt repayments were $(109,000) (in thousands), compared with $(23,231) (in thousands) a year earlier. The net leverage ratio was 3.03, and the full-year objective is ≤ 2.7x by the end of FY27.
The company updated its FY27 outlook, narrowing consolidated net sales to $1.768 – $1.822 BN while raising net income to $88 – $103 MM, adjusted EBITDA to $203 – $210 MM, GAAP diluted EPS to $3.63 – $4.26, adjusted diluted EPS to $3.60 – $4.15, operating cash flow to $163 – $179 MM and free cash flow to $120 – $140 MM. The outlook includes approximately $80.5 million of tariff refunds, with approximately 83% to 88% expected to be reinvested, leaving an estimated pre-tax income net benefit of approximately $10 million to $14 million. Management continues to assume discretionary softness, conservative retailer inventory management, competitive promotional conditions, product-cost inflation and supply-chain uncertainty.
Management, verbatim
Our second quarter results reflect continued progress against our multi-year roadmap. Sales were in line, and Adjusted EBITDA and Adjusted EPS were better than expected, without including the net tariff refund benefit in the quarter.
Mr. G. Scott Uzzell, Chief Executive Officer
We also continued to strengthen our balance sheet, generate free cash flow, and focus resources on the opportunities with the greatest potential to create value.
Mr. G. Scott Uzzell, Chief Executive Officer
Not in the filing
stated, not guessed- Quarterly free cash flow was not reported.
- Quarterly capital expenditures were not reported.
- Dividend amount or dividend policy was not reported.
- Fiscal 2027 outlook for gross margin was not reported.
- Fiscal 2027 outlook for operating expenses was not reported.
- Prior-quarter comparisons were not reported for the presented second-quarter metrics.
- A previous-release outlook was not provided; therefore, no reported results were compared with prior guidance.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Helen of Troy reported its Q2 FY2027 earnings via an SEC Form 8‑K, highlighting modest sales growth and improved profitability.
Ticker impact
Helen of Troy disclosed Q2 FY2027 results with $440.9M sales and raised FY2027 guidance on net sales and EPS.
likely modest upside as market prices in raised guidance
The company issued guidance with higher EPS and sales targets, indicating improved operating performance.
Market effects
Consumer products sector may see slight uplift from improved margins.
U.S. consumer discretionary stocks could benefit.
Limited to investors tracking mid‑cap earnings.
Counterpoint
If the tariff refund benefit fades, the raised guidance may be overstated.
Key entities
- CompanyHelen of Troy Ltd.
Consumer products maker listed on NASDAQ (HELE).
