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Aug 31
Helen of Troy Q2 2026 Earnings Report
Helen of Troy reported a net loss in Q2 2026 as sales declined and it recorded significant non-cash asset impairment charges.
Key Takeaways
Helen of Troy posted a net loss of $308.6 million for Q2 FY2026, primarily driven by $326.4 million in non-cash asset impairment charges. Revenue declined 8.9% YoY to $431.8 million, and adjusted EPS was $0.59. Gross margin and operating margin also contracted versus the prior year.
Revenue declined 8.9% YoY to $431.8 million due to organic sales weakness across both segments.
GAAP net loss of $308.6 million includes $294.0 million in after-tax non-cash asset impairment charges.
Non-GAAP adjusted EPS came in at $0.59, down from $1.21 last year.
Gross profit margin declined to 44.2% due to higher tariffs and promotional expenses.
Helen of Troy
Helen of Troy
Helen of Troy Revenue by Segment
Helen of Troy Revenue by Geographic Location
Revenue by Segment
Home & Outdoor Revenue
CapyFin.comBeauty & Wellness Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Helen of Troy expects continued revenue and earnings pressure in FY2026 due to tariffs, macro uncertainty, and consumer softness, but remains focused on cost reduction and long-term brand investment.
Positive Outlook
- Adjusted EPS for Q2 exceeded internal guidance.
- Strong performance from new acquisition Olive & June.
- Improved operational efficiency through Project Pegasus.
- Strategic price increases implemented to offset tariff costs.
- Cash generation supported $23M in free cash flow YTD.
Challenges Ahead
- Full-year GAAP loss forecast of up to $29.90 per share.
- Revenue expected to decline 6.7% to 8.8% for FY2026.
- Tariffs continue to pressure gross margin and orders.
- Consumer demand remains soft across major categories.
- Retailer inventory rebalancing impacting sales volumes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income