A maker of everyday consumer goods, Helen of Troy sells well-known brands across two lines of business: Home & Outdoor (OXO kitchen tools, Hydro Flask bottles, Osprey backpacks) and Beauty & Wellness (Vicks, Braun, Revlon, Drybar, PUR). It began in 1968 as a wig shop in El Paso, Texas, founded by Louis Rubin and his son Gerald, and took its name from the mythic "most beautiful woman in the world" — a nod to its beauty roots. When wigs fell out of fashion in the 1970s, the company pivoted to hair dryers and curling irons, growing into a global portfolio of licensed and owned brands.
Helen of Troy returns to GAAP profitability with $60.3M in operating income as prior-year impairment charges do not repeat, but adjusted operating income is flat at $16.1M.
Helen of Troy returned to operating profitability after a year of massive charges. rose 8.2% to $402.1 million as both segments recovered from the prior year's tariff-driven order disruptions, but was flat at $16.1 million as higher tariff costs offset the sales gain. The underlying business stabilized, but tariffs continue to pressure margins.
Key takeaways
swung to a $60.3 million profit from a $407.0 million loss a year ago, driven by the absence of $414.4 million in prior-year asset charges and a $54.9 million gain on the sale of a distribution facility.
was flat at $16.1 million, as the benefit of higher sales was offset by higher tariff costs and increased , causing adjusted to contract 0.3 percentage points to 4.0%.
Section summaries
Management's Discussion and Analysis
Consolidated net sales rose 8.2% to $402.1M, driven by Home & Outdoor and Beauty & Wellness growth, while GAAP operating income swung to a $60.3M profit.
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Consolidated revenue increased 8.2% to $402.1 million, with Home & Outdoor up 9.5% and Beauty & Wellness up 7.0%, both benefiting from favorable comparisons to the prior year's tariff-related disruptions.
Consolidated rose 8.2% to $402.1 million, with Home & Outdoor up 9.5% and Beauty & Wellness up 7.0%, both benefiting from favorable comparisons to the prior year when tariff-related disruptions caused retailers to cancel direct import orders from China.
margin declined 1.1 percentage points to 46.0%, primarily due to the net unfavorable impact of tariffs and an unfavorable customer mix in Home & Outdoor.
Net cash used in operating activities was $0.6 million, a decline from $58.3 million provided a year ago, driven by higher cash used for and annual incentive compensation payments.
The company recognized $1.9 million in probable tariff refunds and is actively pursuing additional claims while continuing to diversify its supply chain away from China.
What changed
The prior year's Q1 FY2026 was defined by a $414.4 million non-cash charge that drove a $407.0 million operating loss; this quarter, no impairment charges were recorded, and the company returned to profitability with $60.3 million in .
rose 8.2% after a 10.8% decline in the same quarter last year, as the tariff-driven order cancellations that caused a 17.0% organic decline in Q1 FY2026 did not repeat at the same scale.
The FY 2026 10-K flagged the new CEO's strategic reset focused on brand re-energization and supply chain diversification away from China; this quarter shows early signs of stabilization, but the $1.9 million in tariff refund claims and ongoing supply chain diversification efforts indicate the tariff overhang remains unresolved.
swung from a $58.3 million inflow a year ago to a $0.6 million outflow, reversing the improvement noted in Q1 FY2026 when cash flow had risen 130.4% on lower usage.
What to watch
Whether the 8.2% growth represents a durable recovery or a one-time benefit from lapping the prior year's tariff-driven order cancellations, and whether the rate turns positive after running at negative 17.0% a year ago.
The trajectory of adjusted , which contracted to 4.0%, and whether the company can pass through or mitigate tariff costs that drove the 1.1-point decline.
Whether recovers from the $0.6 million outflow, given that the prior year's $58.3 million inflow was aided by improvements that did not repeat.
The pace and success of supply chain diversification away from China, where 57% of finished goods were sourced as of the FY 2026 10-K, and whether the $1.9 million in tariff refund claims grows materially.
Consolidated margin declined 1.1 percentage points to 46.0%, primarily due to the net unfavorable impact of tariffs and an unfavorable customer mix in Home & Outdoor.
was $60.3 million, a significant swing from a $407.0 million loss last year, largely due to the absence of $414.4 million in prior-year asset charges and a $54.9 million gain on the sale of a distribution facility.
was flat at $16.1 million, as the benefit of higher sales was offset by higher tariff costs and increased , causing adjusted to contract 0.3 percentage points to 4.0%.
Net cash used in operating activities was $0.6 million, a sharp decline from $58.3 million provided a year ago, driven by higher cash used for and annual incentive compensation.
The company recognized $1.9 million in probable tariff refunds and is actively pursuing additional claims, while continuing to diversify its supply chain to mitigate the impact of evolving U.S. tariff policies.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in the information provided in the section entitled “Quantitative and Qualitative Disclosures About Market Risk” in our Form 10-K. Additional information regarding our risk management activities can be found in Notes 9, 10 and 11 to the accomp…
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There have been no material changes in the information provided in the section entitled “Quantitative and Qualitative Disclosures About Market Risk” in our Form 10-K. Additional information regarding our risk management activities can be found in Notes 9, 10 and 11 to the accompanying condensed consolidated financial statements.
We are involved in various legal claims and proceedings in the normal course of operations. We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity, except as described in Part I,…
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We are involved in various legal claims and proceedings in the normal course of operations. We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity, except as described in Part I, Item 3., “Legal Proceedings” of our Form 10-K. Since the filing of our Form 10-K, there have been no material changes in our legal proceedings from those disclosed therein, except as updated herein in the discussion in Note 8 to the accompanying condensed consolidated financial statements.
The ownership of our common stock involves a number of risks and uncertainties. When evaluating the Company and our business before making an investment decision regarding our securities, potential investors should carefully consider the risk factors and uncertainties described…
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The ownership of our common stock involves a number of risks and uncertainties. When evaluating the Company and our business before making an investment decision regarding our securities, potential investors should carefully consider the risk factors and uncertainties described in Part I, Item 1A., “Risk Factors” of our Form 10-K. Since the filing of our Form 10-K, there have been no material changes in our risk factors from those disclosed therein.
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