Helen of Troy returns to profit as quarterly sales grow
Helen of Troy reported a quarterly profit of 4.6 million dollars as sales rose 2.1 per cent. The prior-year quarter had included large non-cash impairment charges. Tariff refunds added a net benefit after reinvestment, while debt and interest expense declined. The consumer products company raised its full-year cash flow outlook and narrowed its sales forecast after the second fiscal quarter.
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Quarterly sales and adjusted earnings increase
Helen of Troy, a consumer products company, reported higher quarterly sales and adjusted earnings per share in its second fiscal quarter results released on October 8. Adjusted earnings per share reached 0.79 dollars. The results cover the second quarter of its 2027 fiscal year.[1], [2]
Sales in the quarter ending August 31 increased by 2.1 per cent to 440.9 million dollars from 431.8 million dollars a year earlier. Net income was 4.6 million dollars, against a prior-year net loss of 308.6 million dollars that included substantial non-cash asset impairment charges. Gross margin rose from 44.2 per cent to 52.2 per cent.[1]
Reinvestment absorbs most quarterly tariff refunds
Gross pretax tariff refunds totalled 26.9 million dollars in the quarter. The company reinvested approximately 23 million dollars, leaving a net pretax benefit of about 4.0 million dollars. Total short- and long-term debt fell to 672.6 million dollars from 893.2 million dollars. Interest expense declined from 14.2 million dollars to 10.9 million dollars; Helen of Troy attributed the decrease to lower average borrowings and a lower effective interest rate, including swaps.[1]
Annual cash flow outlook rises
The company raised annual free cash flow guidance from 85–100 million dollars to 120–140 million dollars. Its annual outlook assumes gross tariff refunds of approximately 80.5 million dollars, with 83–88 per cent reinvested. The expected net pretax contribution is 10–14 million dollars. The company narrowed its full-year net sales range, while the upper limit of its year-end net leverage target fell from 3.2 to 2.7.[1]
