Helen of Troy Earnings Beat on Tariff Refunds

Helen of Troy reported earnings on Oct. 8, 2026, showing a quarter that exceeded profit expectations and prompted a full-year profit outlook raise after tariff-related proceeds boosted margins and operating cash flow. The company trades as HELE.

Quarter Results and Margins

Consolidated net sales for the three months ended Aug. 31, 2026, rose 2.1% year over year to $440.9 million. Adjusted diluted earnings per share increased to $0.79 from $0.59, surpassing the market consensus of $0.51. Gross profit margin expanded to 52.2% from 44.2%, while adjusted operating margin widened to 8.6% from 6.2%. Adjusted EBITDA reached $49.4 million, with a margin of 11.2%, up from 8.4% a year earlier.

Cash flow from operations turned positive at $57.1 million, compared with a $10.5 million outflow in the prior-year quarter. GAAP net income was $4.6 million, or $0.19 per diluted share, reversing a net loss of $308.6 million, or $13.44 per share, in the year-ago period that included significant non-cash asset-impairment charges.

Sales in the Home & Outdoor segment grew 9.2% to $227.9 million, supported by pack demand, international sales, assortment and distribution gains, closeout-channel activity, and new products. Beauty & Wellness revenue declined 4.5% to $213.0 million. The company said consolidated sales aligned with prior guidance, while profitability exceeded expectations.

The quarter’s earnings strength reflected margin expansion and tariff-related proceeds rather than broad-based top-line acceleration, as sales slightly trailed the market consensus of $443.2 million.

Tariff Refunds and Guidance

Helen of Troy reported gross pre-tax tariff refunds totaling $26.9 million. Approximately $23 million of these proceeds was reinvested during the quarter, resulting in an estimated $4.0 million net pre-tax benefit and about a $0.12 diluted EPS gain, based on the company’s estimated annual adjusted effective tax rate. Management said these proceeds materially supported the profit beat and helped lift margins and operating cash flow.

The company raised its fiscal 2027 guidance, narrowing consolidated net sales to a range of $1.768 billion to $1.822 billion. It increased GAAP diluted EPS guidance to $3.63–$4.26 and adjusted diluted EPS to $3.60–$4.15. GAAP net income guidance rose to $88 million–$103 million, adjusted EBITDA to $203 million–$210 million, cash flow from operations to $163 million–$179 million, and free cash flow to $120 million–$140 million. Management attributed the stronger outlook to margin improvement combined with tariff proceeds supporting profitability and cash flow generation.