Helen of Troy Limited (NASDAQ: HELE) First Quarter Fiscal 2026 Results
QuoteReporter
The financial report for the first quarter of fiscal year 2026 was released by Helen of Troy Limited on July 10, 2025. Here is a detailed summary of the provided information:
– **Consolidated Net Sales**:
– Consolidated net sales revenue was $371.7 million, a decline of 10.8% compared to $416.8 million in the same quarter a year ago.
– From the fiscal 2025 sales revenue, there was a decrease in organic business by 17.0%, impacted by foreign currency and acquisitions contributing positively.
– **Financial Performance**:
– Gross profit margin decreased to 47.1% from 48.7%.
– Operating margin decreased significantly to (109.5)% due to non-cash asset impairment charges.
– GAAP diluted loss per share was $19.65, contrasting with diluted earnings per share of $0.26 previously.
– Adjusted diluted earnings per share decreased to $0.41, a decline from $0.99.
– Net cash provided by operating activities increased to $58.3 million from $25.3 million.
– **CEO Transitions**:
– The Board is actively seeking a new CEO, with the interim CEO focusing on operational improvements.
– **Outlook for Q2 Fiscal 2026**:
– Sales outlook for the second quarter of fiscal 2026 is between $408 million to $432 million, forecasting a further decline compared to the same period in fiscal 2025.
– Adjusted diluted earnings per share are expected to be $0.45-$0.60, showing a significant decline from the previous year.
– **Segment Results**:
– **Home & Outdoor**:
– Net sales revenue decreased by 10.3% to $178.0 million.
– Operating loss was $213.8 million, significantly lower than the operating income of $15.9 million.
– **Beauty & Wellness**:
– Net sales revenue decreased by 11.3% to $193.7 million.
– Operating loss was $193.2 million, a stark contrast to the operating income of $14.9 million in the previous year.
– **Balance Sheet and Cash Flow**:
– Cash and cash equivalents increased to $22.7 million.
– Net cash provided by operating activities rose to $58.3 million.
– Free cash flow for the quarter was $45.0 million.
– **Share Repurchase and Dividend**:
– The report does not mention any share repurchase or dividends declared for the quarter.
**Key Points from Management Statements**:
– The company acknowledges challenges faced in the quarter due to tariff impacts but is optimistic about underlying business improvements.
– Efforts are being made to mitigate the impact of tariffs, reduce net tariff impact, and foster innovation and growth.
In conclusion, Helen of Troy Limited saw a decline in sales revenue, gross profit margin, and earnings per share for the first quarter of fiscal year 2026 compared to the same period a year ago. Management is actively working on operational improvements and tariff mitigation strategies to navigate the challenging economic environment.
### Income Statement Table
Amounts in thousands (in thousands).
| Three Months Ended May 31, | 2025 | 2024 | |
|---|---|---|---|
| Sales revenue, net | $371,655 | $416,847 | |
| Cost of goods sold | $196,644 | $213,768 | |
| Gross profit | $175,011 | $203,079 | |
| Selling, general and administrative expense (“SG&A”) | $167,664 | $170,481 | |
| Asset impairment charges | $414,385 | $0 | |
| Restructuring charges | $0 | $1,835 | |
| Operating (loss) income | -$407,038 | $30,763 | |
| Non-operating income, net | $308 | $100 | |
| Interest expense | $13,808 | $12,543 | |
| (Loss) income before income tax | -$420,538 | $18,320 | |
| Income tax expense | $30,180 | $12,116 | |
| Net (loss) income | -$450,718 | $6,204 | |
| Diluted (loss) earnings per share | -$19.65 | $0.26 | |
| Weighted average shares of common stock used in computing diluted (loss) earnings per share | 22,943 | 23,633 |
### Balance Sheet Table
Amounts in thousands (in thousands).
| May 31, | 2025 | 2024 | |
|---|---|---|---|
| Cash and cash equivalents | $22,669 | $16,148 | |
| Receivables, net | $314,814 | $328,097 | |
| Inventory | $484,127 | $444,749 | |
| Total assets, current | $855,415 | $831,563 | |
| Total assets | $2,651,963 | $2,820,951 | |
| Total liabilities, current | $504,514 | $427,675 | |
| Total long-term liabilities | $919,763 | $843,776 | |
| Total debt | $871,013 | $748,377 | |
| Stockholders’ equity | $1,227,686 | $1,549,500 |
