Helen of Troy posted first-quarter sales and adjusted income that topped a Wall Street estimate as organic sales gained while profits softened.
Net income was $35.8 million, or $1.51 per diluted share, versus a net loss of $450. 7 million, or $19.65 per diluted share, in the year-before quarter, the company reported. Adjusted net income was $4 million, or 17 cents per diluted share, versus $9.5 million, or 41 cents per diluted share, in the year-previous period.
A Zacks Investment Research analyst consensus estimate called for earnings per adjusted diluted share of two cents on sales of $375.1 million.
Consolidated net sales were $402.1 million versus $371.7 million in the year-past quarter, the company reported, as organic business advanced 7.4%.
Operating income in the quarter was $60.3 million versus an operating loss of $407 million in the year-prior period while adjusted operating income was $16.1 million, flat year over year.
The company’s Home & Outdoor segment — including Oxo kitchenware, Hydro Flask beverageware and Osprey outdoor gear — saw net sales increase by 9.5%, to $194.9 million, The company attributed the increase to strong international demand for technical, lifestyle and travel packs; incremental sales from new product launches; higher sales from expanded distribution in the home and insulated beverageware categories; and a favorable comparison to the period a year earlier as tariff uncertainty pulled retailer orders out of the first quarter and into the fourth.
Home & Outdoor operating income was $8.2 million versus an operating loss of $213.8 million in the year-earlier quarter while adjusted operating income increased 39.2% to $12.3 million.
Beauty & Wellness — including Revlon hair appliances, Honeywell home environment appliances, Vicks and Braun health care products and PUR water filters (pictured above) — saw net sales increase by 7% in the quarter year over year to $207.2 million. The gain, according to Helen of Troy, was driven by growth in nail care due to new and expanded distribution; higher fan and thermometer sales benefitting from the favorable comparative impact of tariff-related direct import cancellations and disruption in the China thermometry market during the period a year earlier; and growth in wellness driven by incremental sales from new product launches, Helen of Troy maintained.
Beauty & Wellness operating income was $52.2 million versus an operating loss of $193.2 million in the year-earlier quarter while adjusted operating income decreased 48.2% to $3.8 million.
For the current fiscal year, Helen of Troy forecast consolidated net sales of $1.76 billion to $1.83 billion and adjusted diluted earnings per share of $3.25 to $3.75.
In announcing the financial results, G. Scott Uzzell, Helen of Troy CEO, said, “We are off to a solid start in fiscal 2027, with first quarter net sales and adjusted EPS above our expectations and growth across both segments. We believe these results reflect early signs of progress against our multi-year roadmap and the disciplined execution of our teams, including POS gains across a number of our key brands, as we continue to sharpen how the business runs, invest in our brands and capabilities, and get closer to the consumer. While there is still meaningful work ahead and we are navigating a dynamic operating environment, we are encouraged by the progress we are making and believe we are creating the foundation for more consistent, long-term growth.”
