Helen of Troy Beats Q2 Estimates But Guidance Disappoints
Consumer goods firm's stock under pressure after full-year earnings forecast falls short of analyst expectations and it reveals a massive asset impairment charge.
Helen of Troy Limited (NASDAQ: HELE) reported second-quarter results that surpassed Wall Street expectations, but a weak full-year outlook and a substantial asset write-down cast a shadow over the quarterly beat.
The parent company of brands like OXO, Hydro Flask, and Braun posted adjusted earnings of $0.59 per share on revenue of $431.8 million. This performance topped the consensus estimate of approximately $0.54 per share and $418 million in revenue. However, the celebration was muted as the figures represented a significant decline from the prior year, with revenue falling 8.9%.
The bigger story for investors was buried deeper in the financial statements. The company reported a staggering GAAP diluted loss of $13.44 per share, primarily driven by . Such charges can signal that the company believes the future earning power of some of its assets has diminished.
Underscoring these concerns, Helen of Troy issued a cautious full-year forecast. Management now expects adjusted EPS for fiscal 2026 to be in the range of $3.75 to $4.25. This projection , signaling potential headwinds and operational challenges ahead.
The cautious guidance comes as the company's stock has already been under severe pressure. Even before the latest report, , reflecting broader investor concerns about the consumer spending environment and company-specific performance. Analysts had been tempering their expectations ahead of the release, with Canaccord Genuity downgrading the stock to Hold from Buy in July.
While Helen of Troy demonstrated an ability to exceed near-term profit and sales targets, the significant impairment and disappointing guidance suggest the path forward may be challenging as it navigates a shifting consumer landscape.