Helen of Troy (HELE) investor relations material

Executive summary

• Q2 sales rose 2.1% YoY to $440.9M; adjusted operating income increased 40.9% to $37.9M, and adjusted diluted EPS rose to $0.79 from $0.59.

• FY27 priorities include restoring brand momentum through consumer-led innovation, GM-led accountability, commercial discipline and balance-sheet productivity.

Financial highlights

• Q2 gross margin expanded 8.0 percentage points to 52.2%; tariff refunds net of higher tariff costs contributed ~560 bps, while lower trade and promotional expense also supported improvement.

• Adjusted EBITDA increased to $49.4M from $36.2M; adjusted EBITDA margin rose to 11.2% from 8.4%.

• Adjusted operating margin increased to 8.6% from 6.2%; adjusted income was $19.0M, and adjusted diluted EPS rose to $0.79 from $0.59.

• Q2 GAAP net income was $4.6M versus a $308.6M loss; diluted EPS was $0.19 versus $(13.44), with prior-year results including impairment charges.

• H1 free cash flow was $38.3M versus $23.0M; operating cash flow was $56.5M.

Outlook and guidance

• FY27 net sales outlook narrowed to $1.768B–$1.822B, from $1.759B–$1.831B; Home & Outdoor is forecast at $851M–$876M and Beauty & Wellness at $917M–$946M.

• Adjusted EBITDA guidance increased to $203M–$210M; adjusted diluted EPS to $3.60–$4.15; operating cash flow to $163M–$179M; and free cash flow to $120M–$140M.

• Guidance includes a $10M–$14M net pre-tax tariff-refund benefit and a $0.30–$0.45 after-tax adjusted EPS benefit; FY27 capital expenditures are $39M–$43M.

• Year-end net leverage target tightened to 2.7x or lower; active inventory composition improvement target is 12 percentage points by FY-end.