Why Is Helen Of Troy Stock Trading Lower Today?

Helen of Troy Ltd HELE shares are trading lower on Thursday after the fourth-quarter FY25 earnings.

The company reported a fourth-quarter 2025 sales decline of 0.7% year-on-year to $485.89 million. It beat the analyst consensus estimate of $482.67 million.

The drop in sales was primarily driven by a decrease from Organic business of $23.9 million, or 4.9%.

Total net sales revenue for the Home & Outdoor segment declined 1.6%, to $219.8 million. Beauty & Wellness climbed 0.1%, to $266.1 million. Adjusted EPS of $2.33 missed the consensus estimate of $2.40.

The gross profit margin contracted 40 basis points to 48.6%. The operating margin contracted to 0.4% from 13.5% last year due to $51.5 million in non-cash asset impairment charges.

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Non-GAAP adjusted EBITDA decreased 10.6% to $84.3 million, with a margin of 17.4% compared to 19.3%.

As of quarter-end, the company held $18.9 million in cash and equivalents. Operating cash flow for the quarter totaled $35 million, with a free cash flow of $27.1 million, both down year over year.

"As we enter Fiscal 2026, we find ourselves in volatile times. The rapidly changing global tariff actions are creating significant uncertainty in the marketplace which we believe will have a profound impact on the economy broadly, and consumer sentiment specifically, making business planning a challenge," said CEO Noel M. Geoffroy.

Inventory was $452.6 million versus $396 million in the fourth quarter of 2024. During the fourth quarter, the company completed Project Pegasus, which resulted in total pre-tax restructuring charges of $60.9 million.

Due to evolving global tariff policies and the related business and macroeconomic uncertainty, Helen of Troy did not provide an outlook for fiscal 2026.

The company expects to reduce its cost of goods sold exposed to China tariffs to less than 20% by the end of fiscal 2026.

Price Action: HELE shares traded lower by 14.23% at $29.26 at last check Thursday.

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