Helen of Troy Reports Q2 Loss Amid Sales Decline

Helen Of Troy ( (HELE) ) has released its Q2 earnings. Here is a breakdown of the information Helen Of Troy presented to its investors.

Helen of Troy Limited, a global consumer products company known for its diverse portfolio of brands in home, outdoor, beauty, and wellness sectors, has reported its second-quarter fiscal 2026 results, highlighting a significant decline in net sales and earnings. The company, facing a challenging economic environment, reported an 8.9% decline in consolidated net sales to $431.8 million and a GAAP diluted loss per share of $13.44, primarily due to substantial non-cash asset impairment charges.

The earnings report revealed a decrease in gross profit margin to 44.2% and a significant operating loss of $315.7 million, driven by a $326.4 million asset impairment charge. Despite these challenges, the acquisition of Olive & June contributed positively to the Beauty & Wellness segment, partially offsetting declines in other areas. The company also faced increased tariffs, higher SG&A expenses, and unfavorable operating leverage, impacting overall profitability.

Helen of Troy’s management remains focused on strategic initiatives to navigate the current economic disruptions. CEO G. Scott Uzzell emphasized the company’s commitment to innovation and market share growth, while CFO Brian L. Grass highlighted measures to enhance operational efficiency and product-driven growth. The company is actively working on mitigating tariff impacts by diversifying production and implementing cost reductions.

Looking ahead, Helen of Troy projects fiscal 2026 net sales between $1.739 billion and $1.780 billion, with an adjusted diluted EPS of $3.75 to $4.25. The company anticipates ongoing challenges, including consumer spending softness and macroeconomic uncertainties, but remains optimistic about its strategic initiatives and market positioning.