In the third quarter, Helen of Troy made progress toward stabilizing the business, CEO G. Scott Uzzell stated, while key metrics met or exceeded Wall Street expectations.
On average, analysts polled by Zacks Investment Research expected earnings per adjusted diluted share of $1.71 on revenue of $505.4 million.
Net revenue was $512.8 million versus $530.7 million in the year-previous quarter. Operating loss was $8.4 million versus operating income of $75.1 million in the year-before period, while adjusted operating income was $66.3 million versus $87.9 million.
A decline in insulated beverageware, hair appliances, prestige hair care products, thermometers, humidifiers and water filtration drove a decrease in the organic business, partially offset by the contribution from the acquisition of Olive & June and strong demand for travel, technical and lifestyle packs in Home & Outdoor.
Net revenue in the Home & Outdoor segment decreased 6.7%, to $229.6 million, Helen of Troy reported. Operating loss was $100,000 compared to operating income of $40.3 million in the year-past period, while adjusted operating income decreased 39.7% to $27.3 million.
Beauty & Wellness net revenue decreased 0.5% to $283.2 million. Operating loss was $8.3 million versus operating income of $34.8 million in the year-past period, while adjusted operating income decreased 8.5% to $39 million.
Helen of Troy noted that its full fiscal year outlook now is for net revenue in the range of $1.76 billion to $1.77 billion, loss per diluted share in the range of $36.07 to $35.57 and adjusted diluted earnings per share in the range of $3.25 to $3.75. The company’s previous outlook was for net revenue in the range of $1.74 billion to $1.78 billion, loss per diluted share of $29.90 to $29.40 and adjusted diluted earnings per share in the range of $3.75 to $4.25.
In announcing the financial results, Uzzell said, “We delivered third-quarter results in line with our outlook and are making progress toward stabilizing the business despite the challenging external environment. We grew revenue in key brands OXO, Osprey and Olive & June, expanded organic DTC sales and generated positive free cash flow despite tariff-related headwinds. We are sharpening our priorities and placing the consumer at the center of everything we do: investing in innovation, strengthening brand loyalty and advancing commercial excellence. I am confident that we are taking the right steps to position us to deliver sustained revenue and profit growth and create long-term value for all stakeholders.”
