Helen of Troy Limited (NASDAQ: HELE) Q1 2026 Earnings | 07/10/2025

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Helen of Troy Limited reported its Q1 2026 results on July 10, 2025, reflecting a challenging quarter marked by a double-digit sales decline, significant impairment charges, and ongoing CEO succession efforts. Key Financial Highlights Net Sales: $371.7 million, down 10.8% year-over-year from $416.8 million. GAAP Diluted Loss Per Share: $(19.65), driven by substantial non-cash impairment charges. Adjusted Diluted EPS: $0.41, down from $0.99 a year ago and missing consensus estimates. Gross Profit Margin: 47.1%, compared to 48.7% in Q1 2025. Adjusted Operating Margin: 4.3%, down from 10.3% last year. Net Cash from Operating Activities: $58.3 million, up from $25.3 million in the prior-year period. Total Debt: $871 million, with a net leverage ratio of just over 3.1x at quarter-end. Cash & Equivalents: $22.7 million as of May 31, 2025. Segment Performance Home & Outdoor: Net sales fell 10.3% to $178.0 million. Segment operating loss of $213.8 million, including $219.1 million in pre-tax impairment charges. Adjusted operating income dropped 57.9% to $8.9 million (5.0% margin). Beauty & Wellness: Net sales declined 11.3% to $193.7 million. Segment operating loss of $193.2 million, including $195.3 million in pre-tax impairment charges. Adjusted operating income down 66.8% to $7.3 million (3.7% margin). Operational and Strategic Updates The company’s CEO search is ongoing, with interim CEO Brian Grass leading the transition. Organic net sales declined 17.3%, with about 45% of the drop attributed to tariff-related trade disruption, including paused China direct import orders and retailer order slowdowns. Inventory ended at $484 million, including $14 million of tariff-related costs. Management is focused on improving inventory turns and operational efficiency in the second half of the year. Helen of Troy continues to implement cost-reduction and tariff mitigation measures to offset macroeconomic headwinds. Outlook Q2 2026 Guidance: Net sales expected between $408 million and $432 million. Adjusted diluted EPS projected at $0.45–$0.60. Company remains cautious on consumer spending and expects continued softness in the near term, but anticipates improved inventory management and working capital efficiency. About Inside Ticker: For more expert analysis and real-time updates on Helen of Troy Limited (NASDAQ: HELE) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #HelenOfTroy #HELE #Q12026 #Earnings #ConsumerProducts #FinancialResults #Impairment #Growth #Innovation #Tariffs #OperationalEfficiency #CEOsearch #Inventory #Debt #InvestorUpdate #InsideTicker