Helen of Troy HELE Q1 2026 Earnings Preview Downside Risk Amid Declining Sales in Core Segments

Forward-Looking Analysis
Helen of Troy is anticipated to experience revenue and earnings challenges in Q1 2026. Analysts forecast a revenue of $399.3 million, representing a 4.2% decline from the previous year. Additionally, earnings per share (EPS) are expected to drop by 8.1% to $0.91, with no revisions in recent analyst projections. The company's fiscal outlook remains cautious, which is reflected in a lowered full-year forecast following worse-than-expected earnings in previous quarters. Analysts have projected a decrease in annual earnings from $123,751,000 in 2025 to $95,824,566 in 2026. The trailing EPS of $5.39 and a P/E ratio of 6.13 suggest moderate earnings growth of 7.28% towards the next fiscal year. These figures indicate potential downside risks, driven by persistent declines in key product segments, such as hair appliances, which have substantially impacted overall sales.

Historical Performance Review
In Q4 2025, Helen of Troy reported a revenue of $485.89 million and a net income of $50.92 million. The company achieved an earnings per share (EPS) of $2.23, while its gross profit stood at $235.93 million. These figures highlight a robust revenue base and profitability despite recent market challenges.

Additional News
Helen of Troy has encountered notable financial headwinds, with consolidated net sales revenue decreasing by $57.8 million, or 12.2%, in fiscal Q1 2025 due to a drop in hair appliance sales. This decline has prompted a revision of the company's fiscal 2025 outlook, adopting a more cautious stance. Despite these setbacks, the firm remains a significant player in the consumer home and outdoor products markets. The company’s shares are closely monitored by 17 analysts, with recent data compiled and analyzed by S&P Global Market Intelligence. The company continues to focus on strategic adjustments to counterbalance the sales decline and is actively engaged in market analysis to enhance its product offerings.

Summary & Outlook
Helen of Troy's financial health shows signs of strain due to declining revenues and earnings in core segments. The company's cautious outlook and revised forecasts indicate potential risks ahead. However, its substantial gross profit and strategic focus on market adaptation offer a glimmer of resilience. The anticipated revenue and EPS declines, coupled with the significant decrease in hair appliance sales, suggest a bearish stance for now. Future growth will likely depend on the company’s ability to innovate and capture market demand, which remains essential in navigating the current challenges.