Helen of Troy (HELE) investor relations material

Executive summary

• Q1 FY27 consolidated net sales grew 8.2% year-over-year to $402.1 million, with both Home & Outdoor and Beauty & Wellness segments contributing to growth and improved POS trends.

• GAAP diluted EPS was $1.51, including a $1.74 after-tax gain from the sale of a distribution facility; adjusted diluted EPS was $0.17, down from $0.41 in Q1 FY26.

• The company implemented a new GM-led operating model to drive agility, accountability, and international expansion, supporting innovation and commercial discipline.

• FY27 marks the first phase of a multi-year plan focused on consumer-centric innovation, operational excellence, and talent investment.

• Net income reached $35.8 million, reversing a net loss of $450.7 million in the prior year, driven by the absence of large asset impairment charges and the gain on the facility sale.

Financial highlights

• Gross profit margin declined 110 basis points to 46.0% due to tariffs, inventory obsolescence, and less favorable mix.

• Adjusted operating margin was 4.0% (down from 4.3% prior year); adjusted EBITDA margin was 6.3% (down from 6.9%).

• Adjusted net income fell 58.3% to $4.0 million; adjusted diluted EPS dropped to $0.17 from $0.41.

• Operating income was $60.3 million (15.0% margin), including a $54.9 million gain on the facility sale.

• Net cash used by operating activities was $0.6 million, compared to $58.3 million provided last year.

Outlook and guidance

• FY27 net sales guidance raised to $1.759–$1.831 billion; Home & Outdoor: $859–$884 million, Beauty & Wellness: $900–$947 million.

• Adjusted EBITDA expected at $190–$197 million; adjusted EPS at $3.25–$3.75; free cash flow at $85–$100 million.

• Outlook reflects Q1 overperformance, order pull-forward, and supply chain risks from Middle East conflict, with continued inflation and competitive pressures assumed.

• Tariff refund benefit of $9.2 million included, but more than offset by cost inflation from commodities, currency, and freight; future tariff refunds not yet assumed.

• Net leverage ratio targeted at 3.2x or lower by year-end.