Helen of Troy 2026 Q1 Earnings Misses Targets as Net Income Plummets

Helen of Troy (HELE) reported its fiscal 2026 Q1 earnings on July 10, 2025. The company missed expectations, posting a quarterly net loss of $450.72 million compared to a net income of $6.20 million in the same period last year. This significant downturn was attributed to greater-than-expected tariff-related disruptions. The company also adjusted its guidance for Q2, anticipating further declines in net sales and earnings, underscoring ongoing challenges in the macroeconomic environment.

Revenue

Helen of Troy experienced a 10.8% decline in total revenue for fiscal 2026 Q1, falling to $371.65 million from the previous year’s $416.85 million. The Home & Outdoor segment generated $177.98 million, while Beauty & Wellness contributed $193.67 million, collectively comprising the company's total revenue for the quarter.

Earnings/Net Income

The company reported a dramatic shift from a profit of $0.26 per share in Q1 2025 to a loss of $19.65 per share in Q1 2026. This reflects a severe negative performance, making the EPS results notably poor.

Price Action

Post-Earnings Price Action Review

The post-earnings strategy of purchasing Helen of Troy (HELE) shares immediately after the earnings report and holding them for 30 days proved to be highly ineffective. This approach resulted in a return of -83.02%, significantly trailing the benchmark by 168.55%. The strategy's performance was marked by a negative Sharpe ratio of -0.64, indicating poor risk-adjusted returns. Furthermore, the maximum drawdown reached -89.27%, highlighting the high risk and substantial losses associated with this approach. Overall, this strategy demonstrated considerable underperformance, reflecting the volatility and uncertainty surrounding Helen of Troy's stock following the earnings announcement.

CEO Commentary

Brian L. Grass, Chief Executive Officer, acknowledged that the Q1 results were below expectations due to tariff-related disruptions. He stressed the importance of returning to fundamentals and simplifying operations to regain stakeholder confidence. Grass outlined strategic priorities for growth, focusing on innovation, leveraging brand strengths, and reviving company culture, despite current challenges.

Guidance

For Q2 of fiscal 2026, Helen of Troy expects net sales to fall between $408 million and $432 million, a decline of 14% to 9%. The Home & Outdoor segment is projected to decrease by 16.5% to 11.5%, while Beauty & Wellness is expected to decline by 11.3% to 6.1%. Consolidated adjusted diluted EPS is anticipated to range from $0.45 to $0.60.

Additional News

In recent developments unrelated to earnings, Helen of Troy announced significant leadership changes. Noel Geoffroy stepped down as CEO, with Brian Grass appointed as interim CEO. This transition occurred as the company faced ongoing challenges, including tariff impacts and a strategic pivot to diversify production outside China. The Board of Directors is actively engaged with an executive search firm to find a permanent CEO. Additionally, Tracy Scheuerman was named interim CFO, following her previous role as Senior Vice President, Finance for the Home & Outdoor segment. These leadership shifts are part of Helen of Troy's broader efforts to stabilize its operations and chart a path toward sustainable growth and shareholder value.