Helen of Troy (HELE) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 net sales declined 3.4% year-over-year to $512.8 million, with growth in Osprey, OXO, and Olive & June, and a 21% increase in organic DTC revenue.

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

• Net loss was $84.1 million for the quarter, primarily due to $65.9 million in non-cash asset impairment charges and higher tax expense.

• Adjusted operating income and EPS declined sharply year-over-year, reflecting lower sales, higher tariffs, and increased costs.

• Leadership is prioritizing operational efficiency, innovation, and a shift from cost-cutting to revenue growth.

Financial highlights

• Q3 FY2026 net sales were $512.8 million, down 3.4% year-over-year; gross margin decreased to 46.9% from 48.9%.

• Adjusted operating margin fell to 12.9% (down 370 bps); adjusted EBITDA margin was 14.7% (down 350 bps); adjusted EPS was $1.71, down from $2.67.

• Net cash from operating activities for Q3 was $11.9 million; nine-month free cash flow was $28.8 million, down from $56.1 million.

• Inventory increased to $505.3 million, including $35 million in higher tariff costs.

• Total debt rose to $892.4 million, with $325 million in revolver availability.

Outlook and guidance

• FY2026 net sales expected between $1.758 billion and $1.773 billion, down 7.1–7.8% year-over-year; Home & Outdoor $812–$819 million, Beauty & Wellness $946–$954 million.

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

• Full-year GAAP SG&A ratio expected at 38%–40%; adjusted effective tax rate at 13.4%–14.7%.

• Inventory projected at $475–$490 million at year-end, including $39 million in incremental tariff costs.

• Margin pressure and revenue softness expected to persist due to tariffs, promotional environment, and delayed pricing realization.