HELE · Helen of Troy Limited

Helen of Troy Limited announced its fiscal fourth quarter and full-year 2026 results via Exhibit 99.1, revealing a 3.3% decline in Q4 consolidated net sales to $470.0 million, primarily from lower Beauty & Wellness sales of fans, prestige hair care, humidifiers, air purifiers, and Home & Outdoor insulated beverageware and home categories, partially offset by technical packs, thermometers, and Olive & June growth. Gross margin contracted 400 basis points to 44.6% due to higher tariffs, inventory obsolescence, promotional expenses, and channel mix, despite lower commodity costs and the Olive & June acquisition. SG&A rose 270 basis points to 38.6% from incentive compensation, $4.4 million EPA compliance costs, acquisition impacts, and operating leverage. Non-cash asset impairments surged to $79.2 million from a sustained stock price decline, driving GAAP operating loss to $51.0 million (-10.8% margin) versus prior-year income. Adjusted operating margin fell 710 basis points to 8.3%, with adjusted EBITDA down 42.5% to $48.5 million. CEO G. Scott Uzzell highlighted stabilizing performance, brand momentum restoration via innovation, people, digital investments, and working capital efficiency, shifting to growth in FY2027. Full-year FY2026 sales dropped 6.3% to $1.786 billion, with massive GAAP losses from impairments, but adjusted EPS held at $3.55 and operating cash flow rose to $171.1 million. Balance sheet shows $18.9 million cash, $455.8 million inventory (including $34 million tariff costs), and debt reduced to $780.8 million. Post-period, sold Southaven facility for $82.0 million (net $78.2 million), recognizing $54.9 million gain in Q1 FY2027 to repay debt. FY2027 outlook projects sales recovery to $1.751-$1.822 billion (Home & Outdoor $854-$882M, Beauty & Wellness $897-$940M), GAAP EPS $3.57-$4.18, adjusted $3.25-$3.75, EBITDA $190-$197M, assuming stable tariffs, commodities, average illness season, $47-$49M interest, and 3.2x net leverage target.