Helen of Troy reported second-quarter earnings that exceeded Wall Street expectations, largely due to strong performance from its Home & Outdoor business segment. The company posted a net income of $4.6 million, or 19 cents per diluted share, compared to a net loss of $308.6 million, or $13.44 per diluted share, in the year-ago quarter. Adjusted net income rose to $19 million, or 79 cents per diluted share, up from $13.5 million, or 59 cents per share, in the same period last year. Analysts had expected adjusted earnings of 51 cents per share, according to Zacks Investment Research.
Home & Outdoor Group Drives Growth
The Home & Outdoor segment, which includes Oxo kitchenware, Hydro Flask beverageware, and Osprey outdoor gear, saw net sales increase 9.2% to $227.9 million year-over-year. Growth was broad-based across all brands, fueled by strong demand for technical, travel, and lifestyle packs. The segment also benefited from increased international sales, improved assortment and distribution, higher closeout channel sales, and incremental revenue from new product launches. Operating income improved to $24.1 million from an operating loss of $72.6 million in the year-prior period, while adjusted operating income rose 39.2% to $28 million.
Beauty & Wellness Segment Struggles
In contrast, the Beauty & Wellness segment, which includes Revlon hair appliances, Honeywell home environment appliances, Vicks, Braun healthcare products, and PUR water filters, experienced a 4.5% decline in net sales to $213 million year-over-year. The segment faced weaker consumer demand for beauty hair appliances and prestige hair care products. Contributing factors included consumer price sensitivity, increased competition, reduced replenishment orders from retail customers, and lower closeout channel sales. Water filtration sales also declined due to softer demand and heightened competitive marketing activity.
However, the segment saw some positive developments. Heater and thermometer sales benefited from favorable tariff-related effects that reduced direct import orders and disrupted the China market compared to the prior year. Nail care grew due to strong consumer demand, higher replenishment orders, and new product launches, along with expanded distribution. The segment turned an operating loss of $243.1 million into an operating loss of $1.1 million, with adjusted operating income increasing 45.7% to $10 million.
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Nail Care Segment Shows Promise
Nail care within Beauty & Wellness demonstrated resilience, driven by strong consumer demand and new product launches. The segment expanded distribution channels and benefited from increased replenishment orders from retail customers. These factors contributed to a significant improvement in profitability, with adjusted operating income rising to $10 million from a loss the previous year.
Outlook and Future Plans
For the full fiscal year, Helen of Troy narrowed its consolidated net sales outlook to $1.77 billion to $1.82 billion and raised its adjusted diluted earnings per share guidance to $3.60 to $4.15. The company had previously forecasted net sales between $1.76 billion and $1.83 billion and adjusted earnings per share of $3.25 to $3.75. The second-quarter results included gross pre-tax tariff refunds of $26.9 million, with $23 million reinvested during the period, resulting in a net pre-tax benefit of approximately $4 million and a diluted EPS benefit of about 12 cents.
“Our second-quarter results reflect continued progress against our multi-year roadmap,” said G. Scott Uzzell, CEO of Helen of Troy. “Sales were in line, and adjusted EBITDA and adjusted EPS were better than expected, without including the net tariff refund benefit in the quarter. Sales growth was broad-based across Home & Outdoor, Wellness, and International, with improving fundamentals across the balance of the portfolio.” Uzzell emphasized the company’s focus on strengthening its balance sheet, generating free cash flow, and investing in high-potential opportunities. The leadership team plans to reinvest most tariff refunds while allocating some to support near-term earnings and liquidity.
