Helen of Troy (HELE) Investor presentation summary

Offer and board response

• Empower Brands, a Spectrum Brands–Oaktree joint venture, offered $37 per share in cash on Oct. 12, 2026; the board unanimously rejected it on Oct. 20 as substantially undervaluing the business and its prospects.

• Empower Brands publicly disclosed the offer on Nov. 4 and declined to sign a customary NDA or receive additional information; the board remains open to credible opportunities that enhance shareholder value.

• The board said the offer gives no credit to the standalone plan and seeks to buy before management’s plan results are realized.

Strategic roadmap

• The three-phase plan starts with FY27 foundation work, followed by investment and expansion in Years 2–3, then scaling Power Brands, adjacencies, international markets and selective M&A in Year 4+.

• Phase I priorities include a segment and regional GM model, consumer-led innovation, tighter commercial and operational discipline, improved inventory productivity and modernized tools including expanded AI use.

• Five segment GMs own portfolios end-to-end; three regional GMs lead priority markets in EMEAI, APAC and LATAM, aiming for faster consumer-informed decisions and stronger brand execution.

• $66.5M–$70.5M in tariff refunds is being reinvested in the business, brands and people, with debt paydown also a priority.

Operating progress and financial position

• YTD net sales increased 4.9%; Q2 FY27 gross margin expanded 800 bps YoY, comprising ~240 bps from the base business and ~560 bps from tariff refunds, net of higher tariff costs.

• Power Brand net sales grew 13.2% in Q1 FY27 versus 8.2% consolidated growth, and 7.6% in Q2 versus 2.1% consolidated growth.

• Q2 FY27 adjusted EBITDA margin was 11.2% versus 8.4% YoY; GAAP operating margin was 5.2%.

• Net leverage fell to 3.0x in Q2 FY27; debt declined $244M from Q4 FY25 to $673M, and the FY27 leverage target was lowered to ≤2.7x.

• FY27 free cash flow outlook rose to $120M–$140M and cash flow from operations to $163M–$179M; eCommerce net sales grew 16% fiscal year to date.