Helen of Troy Limited (HELE) shares plummeted 20.74% in Thursday's pre-market trading session following the release of its second-quarter fiscal 2026 results and reduced full-year guidance. The consumer products company, known for its beauty, health, and home appliances brands, reported a significant loss and lowered expectations for the fiscal year, citing ongoing business disruptions and cost headwinds.
For the second quarter, Helen of Troy posted a GAAP diluted loss per share of $13.44, primarily due to pre-tax non-cash asset impairment charges of $326.4 million. While the company's adjusted earnings per share of $0.59 surpassed analysts' expectations of $0.53, net sales declined 8.9% to $431.8 million. The company's operating margin plummeted to -73.1% from 7.3% in the previous year, largely due to the impairment charges.
The market reaction was further exacerbated by Helen of Troy's reduced full-year outlook. The company now expects fiscal 2026 adjusted earnings per share in the range of $3.75 to $4.25, significantly below the previous consensus estimate of $4.58. Additionally, Helen of Troy forecasts full-year revenue between $1.739 billion and $1.780 billion, reflecting ongoing challenges in the consumer goods sector. The company also noted that its profit margins were hurt by about 200 basis points as higher tariffs weigh on the cost of goods sold. Helen of Troy now expects 25% to 30% of its cost of goods sold to be exposed to China tariffs by fiscal 2026, up from the previous estimate of less than 25%, highlighting the ongoing impact of global trade tensions on the company's operations.
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