Helen of Troy topped analyst estimates during a second quarter the company described as an adjustment period to repositioning it in response to market conditions with the intent of driving growth and market share.
Net loss was $308.6 million, or $13.44 per diluted share, compared to net income of $17 million, or 74 cents per diluted share, in the year-previous quarter. The decrease was due primarily to recognition of an after-tax asset impairment charge of $294 million and lower operating income exclusive of the asset impairment charges, Helen of Troy stated.
Adjusted for one-time events, net income decreased to $13.5 million, or 59 cents per diluted share, from $27.5 million, or $1.21 per diluted share from the year-before period. The decrease was due primarily to lower adjusted operating income and higher interest expense, partially offset by a decrease in adjusted income tax expense, the company added.
An analyst consensus estimate from Zacks Investment Research called for earnings per adjusted diluted share of 54 cents and revenues of $418.8 million.
Consolidated net sales decreased to $431.8 million from $474.2 million in the year-earlier quarter, driven by a decrease from organic business resulting from a revenue decline in the company’s Beauty & Wellness segment (including Revlon hair appliances, Honeywell home environment appliances, Vicks and Braun health care products and PUR water filters) coming from lower thermometer, heater and hair appliance sales and a revenue decline in its Home & Outdoor segment (including Oxo kitchenware (pictured above), Hydro Flask beverageware and Osprey outdoor travel gear) driven by a decrease in the insulated beverageware and home categories. The contribution from the acquisition of nail care specialist Olive & June and strong demand for technical, travel and lifestyle packs in Home and Outdoor partially offset the decreases elsewhere, the company noted.
Consolidated operating loss was $315.7 million versus consolidated operating income of $34.9 million in the year-prior period, while adjusted operating income was $26.9 million versus $46.4 million.
Home & Outdoor net sales declined to $208.7 million from $241.9 million in the quarter year over year, while operating loss was $72.6 million or $20.1 million adjusted versus an operating income of $31.2 million or $36.3 million adjusted, Helen of Troy reported. Beauty & Wellness net sales slipped to $223.1 million from $232.3 million year over year in the period, while operating loss was $243.1 million or operating income of $6.9 million adjusted versus an operating income of $3.7 million or $10.2 million adjusted.
In discussing its full-year financial outlook, Helen of Troy maintained that it continues to assess incremental tariff cost exposure in light of continuing changes to global policies regarding duties and the full extent of its potential mitigation plans. The company also continues to assess the disruptive impacts that tariffs are having on markets and retailer adaptation to duty costs and uncertainty. Helen of Troy indicated that it expects full year fiscal 2026 consolidated net sales revenue in the range of $1.74 billion to $1.78 billion. It expects fiscal 2026 GAAP diluted loss per share of $29.90 to $29.40 and non-GAAP adjusted diluted earnings per share in the range of $3.75 to $4.25. The company did not provide a full year outlook previously.
In announcing the financial results, Helen of Troy CEO G. Scott Uzzell said, “I joined Helen of Troy last month with a deep admiration for its global brands, differentiated product solutions, solid financial foundation and dedicated associates. While I continue to listen and learn, I am confident in our ability to engineer a great comeback story. We made progress in the second quarter, but there are no quick fixes as we work to get back on a path to growing market share and driving sustainable growth. Moving forward, the consumer will be at the center of everything we do. We will invest in our associates to inspire new innovations that deliver unique solutions designed to win in the marketplace and generate future attractive returns for our shareholders.”
Brian Grass, Helen of Troy CFO, added, “While we are not satisfied with our results, the second quarter marked a step forward with net sales and adjusted earnings per share at the better end of our guidance. We continue to adapt to significant business disruption and cost headwinds, which are considered in our outlook for the remainder of the year. I’m encouraged by the measures we implemented during the quarter to enhance our execution, operational efficiency and go-to-market effectiveness, while taking decisive action to fuel more product-driven growth across the portfolio. We are making a concerted effort to maintain ongoing investment in the health of our brands, while optimizing our productivity as we navigate a difficult environment.”
