Helen of Troy (NASDAQ:HELE) Sets New 1-Year High After Better-Than-Expected Earnings

Key Points

• Helen of Troy beat earnings expectations, reporting quarterly EPS of $0.79 versus the $0.50 consensus estimate. Revenue rose 2.1% year over year to $440.9 million, roughly in line with forecasts, sending shares to a new 52-week high.
• The company raised fiscal 2027 adjusted EPS guidance to $3.60–$4.15, above its previous outlook and the $3.41 analyst consensus. Gross margin expanded significantly, while adjusted income rose 40.3% year over year.
• Performance was mixed across the portfolio: Home & Outdoor sales increased 9.2%, but Beauty & Wellness sales declined 4.5%. Debt also fell to $672.6 million from $893.2 million a year earlier, although results benefited from about $4 million in tariff refunds.

Helen of Troy Limited (NASDAQ:HELE - Get Free Report) shares hit a new 52-week high during trading on Thursday following a better than expected earnings announcement. The company traded as high as $31.98 and last traded at $27.8160, with a volume of 519268 shares trading hands. The stock had previously closed at $25.55.

The company reported $0.79 EPS for the quarter, topping the consensus estimate of $0.50 by $0.29. Helen of Troy had a negative net margin of 22.70% and a positive return on equity of 6.46%. The company had revenue of $440.93 million for the quarter, compared to analysts' expectations of $442.33 million. During the same period last year, the firm earned $0.59 earnings per share. The business's revenue for the quarter was up 2.1% on a year-over-year basis. Helen of Troy has set its FY 2027 guidance at 3.600-4.150 EPS.

Trending Headlines about Helen of Troy

Here are the key news stories impacting Helen of Troy this week:

• Positive Sentiment: Helen of Troy raised fiscal 2027 adjusted EPS guidance to $3.60–$4.15, above the prior outlook and the $3.41 consensus estimate. GAAP diluted EPS guidance was raised to $3.63–$4.26, with net income projected at $88 million–$103 million. Helen of Troy raises profit outlook after second-quarter earnings beat
• Positive Sentiment: Adjusted income increased 40.3% to $19 million, while GAAP results swung to net income of $4.6 million, or $0.19 per share, from a $308.6 million loss in the prior-year quarter. Gross margin expanded to 52.2% from 44.2%, and operating income improved to $22.9 million from a $315.7 million loss. Helen of Troy Posts $440.9 Million Q2 Sales and Raises Fiscal 2027 Outlook
• Positive Sentiment: Home & Outdoor sales rose 9.2% to $227.9 million, and operating cash flow reached $57.1 million. Total debt declined to $672.6 million from $893.2 million a year earlier, improving the balance-sheet profile.
• Neutral Sentiment: Revenue grew 2.1% to $440.9 million, broadly matching expectations, while full-year sales guidance was set at approximately $1.8 billion, in line with consensus.
• Negative Sentiment: Beauty & Wellness sales fell 4.5% to $213.0 million, showing that growth remains uneven across the portfolio. In addition, quarterly results benefited from approximately $4 million in net pre-tax tariff refunds, or about $0.12 of EPS, after much of the gross refund was reinvested.

Analyst Ratings Changes

HELE has been the subject of several analyst reports. Weiss Ratings cut Helen of Troy from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, July 21st. UBS Group increased their target price on Helen of Troy from $25.00 to $28.00 and gave the stock a "neutral" rating in a report on Thursday, July 9th. Canaccord Genuity Group raised their price target on Helen of Troy from $25.00 to $26.00 and gave the stock a "hold" rating in a research report on Tuesday. Wall Street Zen raised Helen of Troy from a "hold" rating to a "strong-buy" rating in a research note on Sunday, July 12th. Finally, Zacks Research cut shares of Helen of Troy from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $27.00.

Institutional Investors Weigh In On Helen of Troy

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of Helen of Troy in the 2nd quarter valued at $54,740,000. Bank of America Corp DE acquired a new stake in Helen of Troy in the second quarter valued at about $27,749,000. Wellington Management Group LLP grew its position in Helen of Troy by 12.8% in the second quarter. Wellington Management Group LLP now owns 824,238 shares of the company's stock valued at $23,961,000 after acquiring an additional 93,350 shares during the last quarter. Pzena Investment Management LLC bought a new position in Helen of Troy in the second quarter valued at about $19,668,000. Finally, RWWM Inc. raised its stake in Helen of Troy by 85.7% during the first quarter. RWWM Inc. now owns 1,173,829 shares of the company's stock worth $16,927,000 after acquiring an additional 541,689 shares in the last quarter.

Helen of Troy Stock Performance

The stock has a market cap of $638.57 million, a price-to-earnings ratio of -1.52 and a beta of 1.34. The company has a quick ratio of 0.81, a current ratio of 1.78 and a debt-to-equity ratio of 0.82. The company has a 50 day simple moving average of $28.24 and a 200 day simple moving average of $25.34.

About Helen of Troy

Helen of Troy Limited is a global consumer products company that develops, markets and distributes branded products across the home and outdoor, beauty, and health and wellness categories. Its portfolio includes household and organization products, drinkware and outdoor equipment, personal-care appliances, hair-care products, and consumer health products.

The company's principal brands include OXO, Hydro Flask, Osprey, Drybar and Hot Tools. Helen of Troy also markets certain health and wellness products under licensed brands, including Vicks, Braun and Honeywell, as well as beauty products under selected licensed and owned brands.

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