Helen of Troy (HELE) Q3 2026 earnings summary

Executive summary

• Third quarter results met expectations, with consolidated net sales down 3.4% year-over-year to $512.8 million, reflecting disciplined execution amid a challenging environment and growth in Osprey, OXO, and Olive & June brands.

• Olive & June exceeded expectations, contributing $37.7 million in quarterly sales and positively impacting segment performance.

• Operating loss was $8.4 million for the quarter, with a net loss of $84.1 million, primarily due to $65.9 million in non-cash asset impairment charges.

• Adjusted diluted EPS was $1.71, down from $2.67 in the prior year.

• Key priorities include investing in innovation, optimizing spending, and managing the balance sheet to drive cash flow and reduce debt.

Financial highlights

• Net sales revenue was $512.8 million for Q3 FY2026, down 3.4% year-over-year; gross profit margin decreased to 46.9% from 48.9%.

• Adjusted operating margin was 12.9% (down from 16.6%); adjusted EBITDA margin was 14.7% (down from 18.2%).

• Adjusted diluted EPS was $1.71; net loss was $84.1 million, compared to net income in the prior year.

• Year-to-date free cash flow was $28.8 million, down from $56.1 million in the prior year.

• Inventory increased to $505.3 million, including $35 million in higher tariff costs; total debt rose to $892.4 million.

Outlook and guidance

• FY2026 net sales expected between $1.758 billion and $1.773 billion, down 7.1–7.8% year-over-year.

• Adjusted EPS guidance is $3.25–$3.75; GAAP diluted loss per share forecasted at $(36.07) to $(35.57).

• Home & Outdoor net sales projected at $812–$819 million; Beauty & Wellness at $946–$954 million, including $106–$109 million from Olive & June.

• Margin pressure and revenue softness expected to persist due to tariffs, consumer trade-down, and increased competition.

• Project Pegasus restructuring aims to deliver $75–$85 million in annualized pre-tax profit improvements by fiscal 2027.