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1. Company Snapshot

1.a. Company Description

Helen of Troy Limited provides various consumer products in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.The company operates through three segments: Home & Outdoor, Health & Wellness, and Beauty.The Home & Outdoor segment offers food preparation tools and gadgets, storage containers, and organization products; coffee makers, grinders, manual pour overs, and tea kettles; household cleaning products, shower organization, and bathroom accessories; feeding and drinking products, child seating products, cleaning tools, and nursery accessories; insulated water bottles, hydration packs, drinkware, mugs, food containers, lunch containers, insulated totes, soft coolers, and accessories; and technical and outdoor sports packs, travel packs, luggage, daypacks, and everyday packs.


The Health & Wellness segment provides thermometers, blood pressure monitors, pulse oximeters, nasal aspirators, and humidifiers; faucet mount water-filtration systems and pitcher-based water filtration systems; and air purifiers, heaters, fans, and humidifiers.The Beauty segment offers grooming brushes, tools, and decorative hair accessories; and shampoos, liquid hair styling, and treatment and conditioning products, as well as hair appliances.The company sells its products through mass merchandisers, drugstore chains, warehouse clubs, home improvement stores, grocery and specialty stores, beauty supply and e-commerce retailers, wholesalers, and various types of distributors, as well as directly to consumers under the OXO, Good Grips, Hydro Flask, Soft Works, OXO tot, OXO Brew, OXO Strive, OXO Outdoor, Osprey, PUR, Honeywell, Braun, Vicks, Drybar, Hot Tools, Revlon, and Bed Head brands.


Helen of Troy Limited was incorporated in 1968 and is headquartered in El Paso, Texas.

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1.b. Last Insights on HELE

Negative drivers behind Helen of Troy Limited's recent performance include the potential for earnings estimate revisions to not translate into further price increases in the near term, as indicated by the recent surge in shares. Additionally, the company's reliance on digital innovation and strategic brand initiatives may not be enough to offset the impact of ongoing macroeconomic challenges. Furthermore, the recent trend of companies in the cosmetics sector being well-positioned despite market challenges may not necessarily benefit Helen of Troy Limited.

1.c. Company Highlights

2. Helen of Troy's Q3 Earnings: A Mixed Bag

Helen of Troy Limited reported third-quarter fiscal 2026 results that were largely in line with expectations, with consolidated net sales decreasing 3.4% and organic net sales declining 10.8%. The company's gross profit margin decreased 200 basis points to 46.9%, and the adjusted operating margin decreased 370 basis points to 12.9%. Adjusted EPS was $1.71, in line with expectations. The decline in sales was largely driven by the home and outdoor segment, which saw a 6.7% decline, while the beauty and wellness segment decreased 0.5%.

Publication Date: Jan -09

📋 Highlights
  • Sales Decline:: Consolidated net sales decreased 3.4% YoY, with organic net sales down 10.8% due to weaker segments.
  • Margin Compression:: Gross profit margin fell 200 bps to 46.9%, and adjusted operating margin dropped 370 bps to 12.9%.
  • Tariff Impact:: Tariffs reduced gross profit by $31.3M YTD, with a full-year impact of $50–55M.
  • Full-Year Guidance:: Net sales outlook of $1.758B–$1.773B, with adjusted EPS narrowed to $3.25–$3.75.
  • Brand Portfolio Focus:: 30–40% of brands have upside potential; strategic investments in innovation and divestitures are prioritized.

Segment Performance

The company's home and outdoor net sales declined 6.7%, while beauty and wellness net sales decreased 0.5%. The decline in home and outdoor sales was largely driven by categories such as beverageware and hair appliances, which are facing secular decline. However, brands like Osprey, Olive and June, OXO, Braun, and Pure continue to meet and exceed internal expectations.

Tariff Impact and Mitigation Strategies

The company continues to face challenges from tariffs, with a $31.3 million impact on gross profit year-to-date and a full-year impact expected to be $50 million to $55 million. However, they have made progress on mitigation strategies, including supplier diversification and price increases. The company remains focused on investing in its brands, innovation, and talent to drive growth and improve its financial performance.

Outlook and Guidance

The company provided an updated outlook for the full year, with net sales expected to be $1.758 billion to $1.773 billion. The adjusted EPS expectations were lowered to a range of $3.25 to $3.75. The company's 4Q outlook has a divergence on the bottom line versus prior outlook, mainly due to unfavorable pricing realization. Analysts estimate next year's revenue growth at 1.9%.

Valuation

With a P/E Ratio of -0.6, P/B Ratio of 0.56, and P/S Ratio of 0.26, the company's valuation multiples suggest that the market is pricing in significant challenges. The company's ROE and ROIC are also negative, at -67.6% and -35.44%, respectively. However, the Free Cash Flow Yield is 18.44%, indicating that the company is generating cash despite its earnings challenges.

Future Prospects

The company expects FY '27 to see improvement, particularly in stabilization and clarity of future growth, but not necessarily high growth. They are working to recapture revenue lost due to tariffs and other exogenous issues. The company aims to prioritize revenue improvement first, then growth, and finally margin expansion, with a goal of achieving double-digit EBIT margin over time.

3. NewsRoom

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Hydro Flask® Partners with Ocean Conservancy®, Joining Protect Where We Play℠ Movement

Jan -26

Source: prnewswire.com

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Helen of Troy's Impairment Charges Hide Its Real Earning Power

Jan -15

Source: seekingalpha.com

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These Analysts Cut Their Forecasts On Helen of Troy After Q3 Results

Jan -09

Source: benzinga.com

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HELE Q3 Earnings Meet Estimates, Home & Outdoor Sales Decline Y/Y

Jan -09

Source: zacks.com

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Helen Of Troy Q3 Results: Macro Headwinds Persist, Shares A Hold

Jan -08

Source: seekingalpha.com

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Helen of Troy Limited (HELE) Q3 2026 Earnings Call Transcript

Jan -08

Source: seekingalpha.com

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Helen of Troy (HELE) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Jan -08

Source: zacks.com

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Helen of Troy Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

Jan -08

Source: benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.36%)

6. Segments

Beauty and Wellness

Expected Growth: 1.5%

Helen of Troy's Beauty and Wellness segment growth of 1.5% is driven by increasing demand for natural and organic personal care products, expansion of online channels, and strategic acquisitions. Additionally, the segment benefits from a strong brand portfolio, including OXO and PUR, and a growing presence in the skincare and haircare markets.

Home and Outdoor

Expected Growth: 1.2%

The 1.2% growth in Home and Outdoor segment of Helen of Troy Limited is driven by increasing demand for household essentials, outdoor recreation, and wellness products. Additionally, the company's focus on e-commerce and omnichannel retailing, as well as its strategic acquisitions, have contributed to the segment's growth.

7. Detailed Products

Housewares

Housewares products include kitchen utensils, gadgets, and cleaning tools

Healthcare/Home Environment

Healthcare/Home Environment products include thermometers, humidifiers, and air purifiers

Personal Care

Personal Care products include hair dryers, straighteners, and curling irons

Nutrition

Nutrition products include water bottles, coffee makers, and food storage containers

Beauty

Beauty products include hair care, skin care, and fragrances

8. Helen of Troy Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Helen of Troy Limited operates in a market with moderate threat of substitutes. While there are some alternatives available, they are not significantly cheaper or better, limiting the threat.

Bargaining Power Of Customers

Helen of Troy Limited's customers have limited bargaining power due to the company's strong brand portfolio and diversified product offerings.

Bargaining Power Of Suppliers

Helen of Troy Limited's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is low for Helen of Troy Limited due to the high barriers to entry in the personal care and household products industry.

Intensity Of Rivalry

The personal care and household products industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.16%
Debt Cost 8.03%
Equity Weight 70.84%
Equity Cost 8.03%
WACC 8.03%
Leverage 41.16%

11. Quality Control: Helen of Troy Limited passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Inter Parfums

A-Score: 6.0/10

Value: 5.5

Growth: 8.0

Quality: 8.1

Yield: 6.0

Momentum: 1.5

Volatility: 7.0

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Clorox

A-Score: 5.7/10

Value: 6.2

Growth: 3.9

Quality: 7.1

Yield: 7.0

Momentum: 0.5

Volatility: 9.3

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Newell Brands

A-Score: 4.0/10

Value: 8.8

Growth: 1.4

Quality: 2.3

Yield: 9.0

Momentum: 0.0

Volatility: 2.3

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e.l.f. Beauty

A-Score: 3.5/10

Value: 1.6

Growth: 9.6

Quality: 5.7

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

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Coty

A-Score: 2.9/10

Value: 7.3

Growth: 3.1

Quality: 2.8

Yield: 0.0

Momentum: 0.0

Volatility: 4.3

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Helen of Troy

A-Score: 2.6/10

Value: 7.7

Growth: 3.2

Quality: 2.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.41$

Current Price

18.41$

Potential

-0.00%

Expected Cash-Flows