Helen of Troy reported Q3 FY2026 results in line with expectations, showing progress in stabilizing the business amidst challenging external conditions, with growth in key brands and positive free cash flow.
Revenue grew in key brands: OXO, Osprey, and Olive & June.
positiveOrganic DTC sales expanded.
positiveGenerated positive free cash flow of $11.9 million.
positiveAcquisition of Olive & June contributed $37.7 million in net sales revenue.
neutralConsolidated net sales revenue declined 3.4% to $512.8 million, driven by a 10.8% decrease in the Organic business.
negativeGross profit margin decreased 200 basis points to 46.9% due to unfavorable impacts from higher tariffs and inventory obsolescence.
negativeOperating margin was (1.6)%, significantly impacted by $65.9 million in pre-tax non-cash asset impairment charges.
negativeAdjusted operating margin declined 370 basis points to 12.9% due to higher tariffs, increased freight costs, and unfavorable operating leverage.
attentionGAAP diluted loss per share was $3.65, including $3.11 from asset impairment charges.
negativeAdjusted diluted EPS decreased 36.0% to $1.71 compared to $2.67 in the prior year.
negativeInventory increased to $505.3 million, up from $450.7 million in the prior year.
attentionTotal debt increased to $892.4 million from $733.9 million.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Beauty & Wellness | $283192.0B | $284597.0B | -0.5% | 55.2% |
Home & Outdoor | $229637.0B | $246109.0B | -6.7% | 44.8% |
| Total Revenue | $512829.0B | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Delivered third quarter results in line with outlook and are making progress toward stabilizing the business.
Grew revenue in key brands – OXO, Osprey, and Olive & June.
Expanded Organic DTC sales and generated positive free cash flow despite tariff-related headwinds.
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