Helen of Troy (HELE) Q3 2025 earnings summary

Executive summary

• Q3 net sales declined 3.4% year-over-year to $530.7M, with Home & Outdoor growth offsetting declines in Beauty & Wellness due to a weak global illness season.

• Adjusted EPS was $2.67, within the outlook range, while gross margin improved by 90 basis points to 48.9%.

• Strategic initiatives, including Project Pegasus and the North American Regional Market Organization, supported distribution gains and market share growth.

• The Olive & June acquisition was completed for $229.4M, expanding the Beauty & Wellness portfolio and expected to be immediately accretive.

• The Tennessee distribution facility automation is fully operational, supporting efficiency gains.

Financial highlights

• Q3 net sales were $530.7M, down 3.4% year-over-year; Home & Outdoor sales grew 4.3%, while Beauty & Wellness declined 9.3%.

• Gross profit margin rose 90 bps to 48.9%; adjusted operating margin increased 30 bps to 16.6%; adjusted EBITDA margin was 18.2%.

• Net income was $49.6M ($2.17 per share); adjusted EPS was $2.67.

• Free cash flow for the first nine months was $56.1M, down from $202.8M last year.

• Total debt at quarter-end was $734M; net leverage ratio was 2.35x, expected to rise to 2.85x–2.75x by year-end.

Outlook and guidance

• FY2025 net sales expected between $1.888B–$1.913B, a 5.8% to 4.6% decline year-over-year.

• Adjusted EPS guidance is $7.15–$7.40, including $0.05–$0.07 accretion from Olive & June.

• Adjusted EBITDA expected at $292–$295M; free cash flow forecasted at $145–$155M.

• Net leverage ratio expected at 2.85x–2.75x by year-end.

• Guidance reflects weak global illness season, macro headwinds, and Olive & June contribution.