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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 Q2 Earnings: A Mixed Bag

The company's second-quarter financial performance was marked by a decline in net sales of 8.9% to $1.69 billion, which was slightly better than expected. However, adjusted EPS came in at $0.59, beating estimates of $0.54. The gross profit margin decreased by 140 basis points to 44.2% due to higher tariffs on cost of goods sold and higher retail trade and promotional expenses. As Brian Grass noted, "We've taken tariff mitigation, cost reduction, and cash flow preservation actions, including supplier diversification, inventory management, SKU prioritization, supplier cost reductions, customer price increases, and cost management."

Publication Date: Oct -28

📋 Highlights
  • New Leadership Strategy:: CEO Scott Azel aims to streamline operations, empower teams, and prioritize growth through innovation, targeting a return to market leadership in brands like Osprey (US technical pack market leader with 3x share of nearest competitor).
  • Segment Performance:: Beauty & Wellness declined 4%, but Olive and June showed better-than-expected sales; Home & Outdoor fell 13.7% due to tariffs and consumer caution, though OXO and Hydro Flask (Micro Hydro launch) drove growth.
  • Tariff Mitigation Success:: 30% of Q2 revenue decline tied to tariffs; $23M free cash flow achieved via cost cuts, supplier diversification, and pricing strategies, offsetting 56% of tariff impact.
  • Inventory & Guidance:: Ended Q2 with $528.9M inventory (+$59M YoY), targeting $480–$500M by year-end; guided FY2026 net sales decline of 6.7–8.8%, with Q3 sales expected to fall 3.5–7.5%.
  • Future Growth Focus:: Expansion of Hydro Flask into bottles (vs. saturated tumblers), Osprey’s sustainability shift (100% recycled fabrics), and Curlsmith’s brand refresh highlight innovation bets for FY2027 recovery.

Segment Performance

The Beauty and Wellness segment declined 4% due to ongoing consumer pressures and tariffs, while the Home and Outdoor segment declined 13.7% due to domestic market pressure from tariffs on direct import orders and cautious consumer spending. However, there were some bright spots, such as the growth of Curlsmith and Osprey, which posted double-digit revenue growth.

Operational Highlights

The company made progress in its five key priorities, including restoring confidence with key stakeholders, improving go-to-market and operating effectiveness, and refocusing on innovation for more product-driven growth. The company also realigned its commercial triangle and rebuilt its organizational structure to drive operational excellence.

Outlook and Valuation

Looking ahead, the company expects net sales between $1.74 billion and $1.78 billion, implying a decline of 8.8% to 6.7% year over year. The current valuation metrics suggest that the company's stock is trading at a P/S Ratio of 0.25, which is relatively low. Additionally, the Free Cash Flow Yield is 16.37%, indicating a potentially attractive return for investors. Analysts estimate next year's revenue growth at -7.4%, which is a challenging environment, but the company's efforts to drive innovation and improve operational efficiency may help mitigate this trend.

3. NewsRoom

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Ensign Peak Advisors Inc Lowers Stake in Helen of Troy Limited $HELE

Dec -02

Source: defenseworld.net

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Helen of Troy Limited Announces Amendment to Existing Credit Agreement

Nov -25

Source: businesswire.com

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Arbor® Snowboards and Hydro Flask® Announce Multi-Year Collaboration

Oct -28

Source: prnewswire.com

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Bear of the Day: Helen of Troy (HELE)

Oct -27

Source: zacks.com

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Is the Options Market Predicting a Spike in Helen of Troy Stock?

Oct -24

Source: zacks.com

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KLP Kapitalforvaltning AS Decreases Stake in Helen of Troy Limited $HELE

Oct -22

Source: defenseworld.net

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Revlon® Unveils New 3-In-One One-Step® Multi-Styler For Salon-Quality Hair At Home

Oct -13

Source: prnewswire.com

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Helen of Troy Q2 Earnings Beat Estimates, Sales Decline 9% Y/Y

Oct -10

Source: zacks.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: 5.9/10

Value: 4.9

Growth: 8.1

Quality: 8.1

Yield: 5.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

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Clorox

A-Score: 5.3/10

Value: 4.0

Growth: 3.9

Quality: 6.5

Yield: 7.0

Momentum: 1.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
e.l.f. Beauty

A-Score: 4.4/10

Value: 0.8

Growth: 9.6

Quality: 7.1

Yield: 0.0

Momentum: 7.0

Volatility: 2.0

1-Year Total Return ->

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Newell Brands

A-Score: 3.9/10

Value: 7.8

Growth: 1.4

Quality: 1.9

Yield: 9.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Helen of Troy

A-Score: 3.0/10

Value: 9.5

Growth: 3.0

Quality: 3.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Coty

A-Score: 2.8/10

Value: 6.4

Growth: 3.1

Quality: 2.8

Yield: 0.0

Momentum: 0.5

Volatility: 4.0

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

20.72$

Current Price

20.72$

Potential

-0.00%

Expected Cash-Flows