Helen of Troy Reports Fourth Quarter Fiscal 2026 Results
EL PASO, Texas--( BUSINESS WIRE)--Helen of Troy Limited (NASDAQ: HELE) reported results for the three-month period ended February 28, 2026 and provided its outlook for fiscal 2027.
Executive Summary – Fourth Quarter of Fiscal 2026 Compared to Fiscal 2025
Executive Summary - Fiscal 2026 Compared to Fiscal 2025
Mr. G. Scott Uzzell, Chief Executive Officer, stated: “We closed fiscal 2026 with net sales, adjusted EPS, and cash flow at the better end of our expectations, reflecting our initial steps to stabilize brand performance and improve our financial position during a dynamic year. We are focused on restoring brand momentum by investing in our product innovation, people, and digital capabilities, while emphasizing working capital efficiency and balance sheet productivity. We believe fiscal 2027 marks a pivotal shift as we transition to a growth-first mindset, positioning us for long‑term shareholder value creation.”
Three Months Ended Last Day of February,
(in thousands) (unaudited)
Home &
Outdoor
Beauty &
Wellness
Total
Fiscal 2025 sales revenue, net
$
219,819
$
266,072
$
485,891
Organic business (4)
(5,770
)
(23,692
)
(29,462
)
Impact of foreign currency
2,480
2,340
4,820
Acquisition (5)
—
8,776
8,776
Change in sales revenue, net
(3,290
)
(12,576
)
(15,866
)
Fiscal 2026 sales revenue, net
$
216,529
$
253,496
$
470,025
Total net sales revenue growth (decline)
(1.5
)%
(4.7
)%
(3.3
)%
Organic business
(2.6
)%
(8.9
)%
(6.1
)%
Impact of foreign currency
1.1
%
0.9
%
1.0
%
Acquisition
—
%
3.3
%
1.8
%
Operating margin (GAAP)
Fiscal 2026
7.7
%
(26.7
)%
(10.8
)%
Fiscal 2025
14.7
%
(11.4
)%
0.4
%
Adjusted operating margin (non-GAAP) (1)
Fiscal 2026
10.4
%
6.6
%
8.3
%
Fiscal 2025
17.9
%
13.4
%
15.4
%
Consolidated Results - Fourth Quarter Fiscal 2026 Compared to Fourth Quarter Fiscal 2025
On an adjusted basis (non-GAAP) for the fourth quarters of fiscal 2026 and 2025, excluding acquisition-related expenses, asset impairment charges (3), EPA compliance costs (6), intangible asset reorganization (7), restructuring charges, amortization of intangible assets and non-cash share-based compensation, as applicable:
Segment Results - Fourth Quarter Fiscal 2026 Compared to Fourth Quarter Fiscal 2025
Home & Outdoor net sales revenue decreased $3.3 million, or 1.5%, to $216.5 million. The decrease was primarily driven by:
These factors were partially offset by strong demand for technical, travel and lifestyle packs, incremental sales from new product launches in the insulated beverageware category, and higher closeout sales.
Home & Outdoor operating income was $16.7 million, or 7.7% of segment net sales revenue, compared to $32.3 million, or 14.7% of segment net sales revenue. Operating income in the fourth quarter of fiscal 2026 included $3.9 million of asset impairment charges. The remaining 520 basis point decrease in segment operating margin was primarily due to:
These factors were partially offset by lower commodity and product costs and the favorable comparative impact of restructuring charges of $3.1 million in the prior year period. Adjusted operating income decreased 42.5% to $22.6 million, or 10.4% of segment net sales revenue, compared to $39.3 million, or 17.9% of segment net sales revenue.
Beauty & Wellness net sales revenue decreased $12.6 million, or 4.7%, to $253.5 million. The decrease was primarily driven by a decrease from Organic business of $23.7 million, or 8.9%, primarily due to:
These factors were partially offset by an increase in thermometry, mass beauty, and Organic growth from Olive & June.
Beauty & Wellness operating loss was $67.7 million, or (26.7)% of segment net sales revenue, compared to $30.3 million, or (11.4)% of segment net sales revenue. Operating loss in the fourth quarter of fiscal 2026 included $75.2 million of asset impairment charges, compared to $51.5 million in the same period last year. The remaining 490 basis point decrease in segment operating margin was primarily due to:
These factors were partially offset by:
Adjusted operating income decreased 53.4% to $16.7 million, or 6.6% of segment net sales revenue, compared to $35.8 million, or 13.4% of segment net sales revenue.
Balance Sheet and Cash Flow - Fiscal 2026 Compared to Fiscal 2025
Subsequent Event - Sale of Distribution Facility
On April 14, 2026, the Company completed the sale of its distribution facility in Southaven, Mississippi for a total sales price of $82.0 million, less costs to sell of $3.8 million. Accordingly, the Company recognized a gain on the sale of $54.9 million within SG&A during the first quarter of fiscal 2027, which was recognized by its Beauty & Wellness segment. The Company used the proceeds from the sale to repay amounts outstanding under its credit facility.
Fiscal 2027 Annual Outlook
Key Annual Outlook Assumptions
The likelihood, timing and potential impact of a significant or prolonged recession, any fiscal 2027 acquisitions and divestitures, future asset impairment charges, additional interest rate changes, litigation or share repurchases are unknown and cannot be reasonably estimated; therefore, they are not included in the Company's outlook.
Key Outlook Drivers and Macro Environment Dynamics
Conference Call and Webcast
The Company will conduct a teleconference in conjunction with today’s earnings release. The teleconference begins at 9:00 a.m. Eastern Time today, Thursday, April 23, 2026. Institutional investors and analysts interested in participating in the call are invited to dial (877) 407-3982 approximately ten minutes prior to the start of the call. The conference call will also be webcast live on the Events & Presentations page at: http://investor.helenoftroy.com/. A telephone replay of this call will be available at 1:00 p.m. Eastern Time on April 23, 2026, until 11:59 p.m. Eastern Time on May 7, 2026, and can be accessed by dialing (844) 512-2921 and entering replay pin number 13759611. A replay of the webcast will remain available on the website for one year.
Non-GAAP Financial Measures
The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States of America (“GAAP”). To supplement its presentation, the Company discloses certain financial measures that may be considered non-GAAP such as Adjusted Operating Income, Adjusted Operating Margin, Adjusted Effective Tax Rate, Adjusted Income, Adjusted Diluted Earnings per Share (“EPS”), EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Net Leverage Ratio, which are presented in accompanying tables to this press release along with a reconciliation of these financial measures to their corresponding GAAP-based financial measures presented in the Company’s consolidated statements of income and cash flows. For additional information, see Note 1 to the accompanying tables to this press release.
About Helen of Troy Limited
Helen of Troy Limited (NASDAQ: HELE) is a leading global consumer products company offering creative products and solutions for its customers through a diversified portfolio of well-recognized and widely-trusted brands, including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith, Revlon and Olive & June. All trademarks herein belong to Helen of Troy Limited (or its subsidiaries) and/or are used under license from their respective licensors.
For more information about Helen of Troy, please visit http://investor.helenoftroy.com
Forward-Looking Statements
Certain written and oral statements made by the Company and subsidiaries of the Company may constitute “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. This includes statements made in this press release, in other filings with the SEC, and in certain other oral and written presentations. Generally, the words “anticipates”, “assumes”, “believes”, “expects”, “plans”, “may”, “will”, “might”, “would”, “should”, “seeks”, “estimates”, “project”, “predict”, “potential”, “currently”, “continue”, “intends”, “outlook”, “forecasts”, “targets”, “reflects”, “could”, and other similar words identify forward-looking statements. All statements that address operating results, events or developments that the Company expects or anticipates may occur in the future, including statements related to sales, expenses, including cost reduction measures, EPS results, and statements expressing general expectations about future operating results, are forward-looking statements and are based upon its current expectations and various assumptions. The Company currently believes there is a reasonable basis for these expectations and assumptions, but there can be no assurance that the Company will realize these expectations or that these assumptions will prove correct. Forward-looking statements are only as of the date they are made and are subject to risks, many of which are beyond the Company’s control, that could cause them to differ materially from actual results. Accordingly, the Company cautions readers not to place undue reliance on forward-looking statements. The forward-looking statements contained in this press release should be read in conjunction with, and are subject to and qualified by, the risks described in the Company’s Form 10-K for the year ended February 28, 2026, and in the Company’s other filings with the SEC. Investors are urged to refer to the risk factors referred to above for a description of these risks. Such risks include, among others, the geographic concentration of certain United States (“U.S.”) distribution facilities which increases its risk to disruptions that could affect the Company’s ability to deliver products in a timely manner, the occurrence of cyber incidents or failure by the Company or its third-party service providers to maintain cybersecurity and the integrity of confidential internal or customer data, a cybersecurity breach, obsolescence or interruptions in the operation of the Company’s central global Enterprise Resource Planning systems and other peripheral information systems, risks associated with the use of licensed trademarks from or to third parties, the Company’s ability to develop and introduce a continuing stream of innovative new products to meet changing consumer preferences, actions taken by large customers that may adversely affect the Company’s gross profit and operating results, the Company’s dependence on sales to several large customers and the risks associated with any loss of, or substantial decline in, sales to top customers, the Company’s dependence on third-party manufacturers, most of which are located in Asia, and any inability to obtain products from such manufacturers or diversify production to other regions or source the same product in multiple regions or implement potential tariff mitigation plans, the Company’s ability to deliver products to its customers in a timely manner and according to their fulfillment standards, the risks associated with trade barriers, exchange controls, expropriations, and other risks associated with domestic and foreign operations including uncertainty and business interruptions resulting from political changes and events in the U.S. and abroad, and volatility in the global credit and financial markets and economy, the Company’s dependence on the strength of retail economies and vulnerabilities to any prolonged economic downturn, including a downturn from the effects of macroeconomic conditions, geopolitical conditions including global conflicts or wars such as the Israel-United States and Iran conflict, any public health crises or similar conditions, risks associated with weather conditions, the duration and severity of the cold and flu season and other related factors, the Company’s reliance on its Chief Executive Officer and a limited number of other key senior officers to operate its business, the Company’s ability to execute and realize expected synergies from strategic business initiatives such as acquisitions, including Olive & June, divestitures and global restructuring plans, including Project Pegasus, the risks of significant tariffs or other restrictions continuing to be placed on imports from China, Vietnam or Mexico and any retaliatory measures taken by these countries, the risks of potential changes in laws and regulations, including environmental, employment and health and safety and tax laws, and the costs and complexities of compliance with such laws, the risks associated with increased focus and expectations on climate change and other sustainability matters, the risks associated with significant changes in or the Company’s compliance with regulations, interpretations or product certification requirements, the risks associated with global legal developments regarding privacy and data security that could result in changes to its business practices, penalties, increased cost of operations, or otherwise harm the business, the risks associated with product recalls, product liability and other claims against the Company, the Company’s dependence on whether it is classified as a “controlled foreign corporation” for U.S. federal income tax purposes which impacts the tax treatment of its non-U.S. income, the risks associated with regulatory changes in Bermuda, including economic substance and tax governance requirements, the risks associated with accounting for tax positions and the resolution of tax disputes, and associated financial risks including but not limited to, the risks to the Company’s business, liquidity or cost of capital which may be materially adversely affected by constraints or changes in the capital and credit markets, interest rates and limitations under and compliance with its credit facility, including debt covenants, significant additional impairment of the Company’s goodwill, indefinite-lived and definite-lived intangible assets and other long-lived assets, projections of product demand, sales and net income, which are highly subjective in nature, and from which future sales and net income could vary by a material amount, increased costs of raw materials, energy and transportation, and risks associated with foreign currency exchange rate fluctuations. The Company undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.
HELEN OF TROY LIMITED AND SUBSIDIARIES
Consolidated Statements of (Loss) Income (5)
(Unaudited) (in thousands, except per share data)
Three Months Ended Last Day of February,
2026
2025
Sales revenue, net
$
470,025
100.0
%
$
485,891
100.0
%
Cost of goods sold
260,367
55.4
%
249,962
51.4
%
Gross profit
209,658
44.6
%
235,929
48.6
%
Selling, general and administrative expense (“SG&A”)
181,438
38.6
%
174,516
35.9
%
Asset impairment charges
79,176
16.8
%
51,455
10.6
%
Restructuring charges
—
—
%
7,943
1.6
%
Operating (loss) income
(50,956
)
(10.8
)%
2,015
0.4
%
Non-operating income, net
214
—
%
370
0.1
%
Interest expense
13,855
2.9
%
13,999
2.9
%
Loss before income tax
(64,597
)
(13.7
)%
(11,614
)
(2.4
)%
Income tax benefit
(9,032
)
(1.9
)%
(62,531
)
(12.9
)%
Net (loss) income
$
(55,565
)
(11.8
)%
$
50,917
10.5
%
Diluted (loss) earnings per share
$
(2.41
)
$
2.22
Weighted average shares of common stock used in computing diluted (loss) earnings per share
23,069
22,904
Fiscal Years Ended Last Day of February,
2026
2025
Sales revenue, net
$
1,786,290
100.0
%
$
1,907,665
100.0
%
Cost of goods sold
970,596
54.3
%
993,259
52.1
%
Gross profit
815,694
45.7
%
914,406
47.9
%
SG&A
708,909
39.7
%
705,381
37.0
%
Asset impairment charges
885,861
49.6
%
51,455
2.7
%
Restructuring charges
3,005
0.2
%
14,822
0.8
%
Operating (loss) income
(782,081
)
(43.8
)%
142,748
7.5
%
Non-operating income, net
982
0.1
%
838
—
%
Interest expense
57,739
3.2
%
51,922
2.7
%
(Loss) income before income tax
(838,838
)
(47.0
)%
91,664
4.8
%
Income tax expense (benefit)
60,144
3.4
%
(32,087
)
(1.7
)%
Net (loss) income
$
(898,982
)
(50.3
)%
$
123,751
6.5
%
Diluted (loss) earnings per share
$
(39.08
)
$
5.37
Weighted average shares of common stock used in computing diluted (loss) earnings per share
23,002
23,065
Consolidated Net Sales Revenue by Geographic Region (10)
(Unaudited) (in thousands)
Three Months Ended Last Day of February,
2026
2025
Domestic sales revenue, net
$
350,326
74.5
%
$
372,282
76.6
%
International sales revenue, net
119,699
25.5
%
113,609
23.4
%
Total sales revenue, net
$
470,025
100.0
%
$
485,891
100.0
%
Fiscal Years Ended Last Day of February,
2026
2025
Domestic sales revenue, net
$
1,352,049
75.7
%
$
1,439,251
75.4
%
International sales revenue, net
434,241
24.3
%
468,414
24.6
%
Total sales revenue, net
$
1,786,290
100.0
%
$
1,907,665
100.0
%
Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income (Loss) and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (1)
(Unaudited) (in thousands)
Three Months Ended February 28, 2026
Home &
Outdoor
Beauty &
Wellness (5)
Total
Operating income (loss), as reported (GAAP)
$
16,699
7.7
%
$
(67,655
)
(26.7
)%
$
(50,956
)
(10.8
)%
Asset impairment charges (3)
3,933
1.8
%
75,243
29.7
%
79,176
16.8
%
EPA compliance costs (6)
—
—
%
4,354
1.7
%
4,354
0.9
%
Subtotal
20,632
9.5
%
11,942
4.7
%
32,574
6.9
%
Amortization of intangible assets
1,445
0.7
%
3,032
1.2
%
4,477
1.0
%
Non-cash share-based compensation
486
0.2
%
1,701
0.7
%
2,187
0.5
%
Adjusted operating income (non-GAAP)
$
22,563
10.4
%
$
16,675
6.6
%
$
39,238
8.3
%
Three Months Ended February 28, 2025
Home &
Outdoor
Beauty &
Wellness (5)
Total
Operating income (loss), as reported (GAAP)
$
32,286
14.7
%
$
(30,271
)
(11.4
)%
$
2,015
0.4
%
Acquisition-related expenses
—
—
%
3,035
1.1
%
3,035
0.6
%
Asset impairment charges
—
—
%
51,455
19.3
%
51,455
10.6
%
Restructuring charges
3,127
1.4
%
4,816
1.8
%
7,943
1.6
%
Subtotal
35,413
16.1
%
29,035
10.9
%
64,448
13.3
%
Amortization of intangible assets
1,761
0.8
%
3,508
1.3
%
5,269
1.1
%
Non-cash share-based compensation
2,099
1.0
%
3,227
1.2
%
5,326
1.1
%
Adjusted operating income (non-GAAP)
$
39,273
17.9
%
$
35,770
13.4
%
$
75,043
15.4
%
Fiscal Year Ended February 28, 2026
Home &
Outdoor
Beauty &
Wellness (5)
Total
Operating loss, as reported (GAAP)
$
(269,744
)
(32.4
)%
$
(512,337
)
(53.7
)%
$
(782,081
)
(43.8
)%
Asset impairment charges
332,565
39.9
%
553,296
58.0
%
885,861
49.6
%
CEO succession costs (11)
1,742
0.2
%
1,742
0.2
%
3,484
0.2
%
EPA compliance costs
—
—
%
4,354
0.5
%
4,354
0.2
%
Restructuring charges
1,501
0.2
%
1,504
0.2
%
3,005
0.2
%
Subtotal
66,064
7.9
%
48,559
5.1
%
114,623
6.4
%
Amortization of intangible assets
5,977
0.7
%
11,082
1.2
%
17,059
1.0
%
Non-cash share-based compensation
6,781
0.8
%
10,104
1.1
%
16,885
0.9
%
Adjusted operating income (non-GAAP)
$
78,822
9.5
%
$
69,745
7.3
%
$
148,567
8.3
%
Fiscal Year Ended February 28, 2025
Home &
Outdoor
Beauty &
Wellness (5)
Total
Operating income, as reported (GAAP)
$
119,601
13.2
%
$
23,147
2.3
%
$
142,748
7.5
%
Acquisition-related expenses
—
—
%
3,035
0.3
%
3,035
0.2
%
Asset impairment charges
—
—
%
51,455
5.1
%
51,455
2.7
%
Restructuring charges
4,855
0.5
%
9,967
1.0
%
14,822
0.8
%
Subtotal
124,456
13.7
%
87,604
8.7
%
212,060
11.1
%
Amortization of intangible assets
7,064
0.8
%
11,811
1.2
%
18,875
1.0
%
Non-cash share-based compensation
10,402
1.1
%
10,974
1.1
%
21,376
1.1
%
Adjusted operating income (non-GAAP)
$
141,922
15.7
%
$
110,389
11.0
%
$
252,311
13.2
%
Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income (Loss) to EBITDA
(Earnings (Loss) Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (1)
(Unaudited) (in thousands)
Three Months Ended February 28, 2026
Home &
Outdoor
Beauty &
Wellness (5)
Total
Operating income (loss), as reported (GAAP)
$
16,699
7.7
%
$
(67,655
)
(26.7
)%
$
(50,956
)
(10.8
)%
Depreciation and amortization
5,923
2.7
%
7,591
3.0
%
13,514
2.9
%
Non-operating income, net
—
—
%
214
0.1
%
214
—
%
EBITDA (non-GAAP)
22,622
10.4
%
(59,850
)
(23.6
)%
(37,228
)
(7.9
)%
Add: Asset impairment charges
3,933
1.8
%
75,243
29.7
%
79,176
16.8
%
EPA compliance costs
—
—
%
4,354
1.7
%
4,354
0.9
%
Non-cash share-based compensation
486
0.2
%
1,701
0.7
%
2,187
0.5
%
Adjusted EBITDA (non-GAAP)
$
27,041
12.5
%
$
21,448
8.5
%
$
48,489
10.3
%
Three Months Ended February 28, 2025
Home &
Outdoor
Beauty &
Wellness (5)
Total
Operating income (loss), as reported (GAAP)
$
32,286
14.7
%
$
(30,271
)
(11.4
)%
$
2,015
0.4
%
Depreciation and amortization
6,515
3.0
%
7,683
2.9
%
14,198
2.9
%
Non-operating income, net
—
—
%
370
0.1
%
370
0.1
%
EBITDA (non-GAAP)
38,801
17.7
%
(22,218
)
(8.4
)%
16,583
3.4
%
Add: Acquisition-related expenses
—
—
%
3,035
1.1
%
3,035
0.6
%
Asset impairment charges
—
—
%
51,455
19.3
%
51,455
10.6
%
Restructuring charges
3,127
1.4
%
4,816
1.8
%
7,943
1.6
%
Non-cash share-based compensation
2,099
1.0
%
3,227
1.2
%
5,326
1.1
%
Adjusted EBITDA (non-GAAP)
$
44,027
20.0
%
$
40,315
15.2
%
$
84,342
17.4
%
Fiscal Year Ended February 28, 2026
Home &
Outdoor
Beauty &
Wellness (5)
Total
Operating loss, as reported (GAAP)
$
(269,744
)
(32.4
)%
$
(512,337
)
(53.7
)%
$
(782,081
)
(43.8
)%
Depreciation and amortization
24,597
3.0
%
28,698
3.0
%
53,295
3.0
%
Non-operating income, net
—
—
%
982
0.1
%
982
0.1
%
EBITDA (non-GAAP)
(245,147
)
(29.4
)%
(482,657
)
(50.6
)%
(727,804
)
(40.7
)%
Add: Asset impairment charges
332,565
39.9
%
553,296
58.0
%
885,861
49.6
%
CEO succession costs
1,742
0.2
%
1,742
0.2
%
3,484
0.2
%
EPA compliance costs
—
—
%
4,354
0.5
%
4,354
0.2
%
Restructuring charges
1,501
0.2
%
1,504
0.2
%
3,005
0.2
%
Non-cash share-based compensation
6,781
0.8
%
10,104
1.1
%
16,885
0.9
%
Adjusted EBITDA (non-GAAP)
$
97,442
11.7
%
$
88,343
9.3
%
$
185,785
10.4
%
Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income (Loss) to EBITDA
(Earnings (Loss) Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (1)
(Unaudited) (in thousands)
Fiscal Year Ended February 28, 2025
Home &
Outdoor
Beauty &
Wellness (5)
Total
Operating income, as reported (GAAP)
$
119,601
13.2
%
$
23,147
2.3
%
$
142,748
7.5
%
Depreciation and amortization
26,088
2.9
%
28,960
2.9
%
55,048
2.9
%
Non-operating income, net
—
—
%
838
0.1
%
838
—
%
EBITDA (non-GAAP)
145,689
16.1
%
52,945
5.3
%
198,634
10.4
%
Add: Acquisition-related expenses
—
—
%
3,035
0.3
%
3,035
0.2
%
Asset impairment charges
—
—
%
51,455
5.1
%
51,455
2.7
%
Restructuring charges
4,855
0.5
%
9,967
1.0
%
14,822
0.8
%
Non-cash share-based compensation
10,402
1.1
%
10,974
1.1
%
21,376
1.1
%
Adjusted EBITDA (non-GAAP)
$
160,946
17.8
%
$
128,376
12.8
%
$
289,322
15.2
%
Reconciliation of Non-GAAP Financial Measures – GAAP Net (Loss) Income to EBITDA
(Earnings (Loss) Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (1)
(Unaudited) (in thousands)
Three Months Ended Last Day of February,
2026
2025
Net (loss) income, as reported (GAAP)
$
(55,565
)
(11.8
)%
$
50,917
10.5
%
Interest expense
13,855
2.9
%
13,999
2.9
%
Income tax benefit
(9,032
)
(1.9
)%
(62,531
)
(12.9
)%
Depreciation and amortization
13,514
2.9
%
14,198
2.9
%
EBITDA (non-GAAP)
(37,228
)
(7.9
)%
16,583
3.4
%
Add: Acquisition-related expenses
—
—
%
3,035
0.6
%
Asset impairment charges
79,176
16.8
%
51,455
10.6
%
EPA compliance costs
4,354
0.9
%
—
—
%
Restructuring charges
—
—
%
7,943
1.6
%
Non-cash share-based compensation
2,187
0.5
%
5,326
1.1
%
Adjusted EBITDA (non-GAAP)
$
48,489
10.3
%
$
84,342
17.4
%
Fiscal Years Ended Last Day of February,
2026
2025
Net (loss) income, as reported (GAAP)
$
(898,982
)
(50.3
)%
$
123,751
6.5
%
Interest expense
57,739
3.2
%
51,922
2.7
%
Income tax expense (benefit)
60,144
3.4
%
(32,087
)
(1.7
)%
Depreciation and amortization
53,295
3.0
%
55,048
2.9
%
EBITDA (non-GAAP)
(727,804
)
(40.7
)%
198,634
10.4
%
Add: Acquisition-related expenses
—
—
%
3,035
0.2
%
Asset impairment charges
885,861
49.6
%
51,455
2.7
%
CEO succession costs
3,484
0.2
%
—
—
%
EPA compliance costs
4,354
0.2
%
—
—
%
Restructuring charges
3,005
0.2
%
14,822
0.8
%
Non-cash share-based compensation
16,885
0.9
%
21,376
1.1
%
Adjusted EBITDA (non-GAAP)
$
185,785
10.4
%
$
289,322
15.2
%
Reconciliation of Non-GAAP Financial Measures – GAAP (Loss) Income and Diluted (Loss) Earnings Per Share to Adjusted Income and Adjusted Diluted Earnings Per Share (Non-GAAP) (1)
(Unaudited) (in thousands, except per share data)
Three Months Ended February 28, 2026
(Loss) Income
Diluted (Loss) Earnings Per Share
Before Tax
Tax
Net of Tax
Before Tax
Tax
Net of Tax
As reported (GAAP)
$
(64,597
)
$
(9,032
)
$
(55,565
)
$
(2.80
)
$
(0.39
)
$
(2.41
)
Asset impairment charges
79,176
15,370
63,806
3.41
0.66
2.75
EPA compliance costs
4,354
(1,114
)
5,468
0.19
(0.05
)
0.24
Subtotal
18,933
5,224
13,709
0.81
0.22
0.59
Amortization of intangible assets
4,477
744
3,733
0.19
0.03
0.16
Non-cash share-based compensation
2,187
321
1,866
0.09
0.01
0.08
Adjusted (non-GAAP)
$
25,597
$
6,289
$
19,308
$
1.10
$
0.27
$
0.83
Weighted average shares of common stock used in computing:
Diluted loss per share, as reported
23,069
Adjusted diluted earnings per share (non-GAAP)
23,234
Three Months Ended February 28, 2025
(Loss) Income
Diluted (Loss) Earnings Per Share
Before Tax
Tax
Net of Tax
Before Tax
Tax
Net of Tax
As reported (GAAP)
$
(11,614
)
$
(62,531
)
$
50,917
$
(0.51
)
$
(2.73
)
$
2.22
Acquisition-related expenses
3,035
—
3,035
0.13
—
0.13
Asset impairment charges
51,455
3,895
47,560
2.25
0.17
2.08
Intangible asset reorganization (7)
—
64,604
(64,604
)
—
2.82
(2.82
)
Restructuring charges
7,943
814
7,129
0.35
0.04
0.31
Subtotal
50,819
6,782
44,037
2.22
0.30
1.92
Amortization of intangible assets
5,269
812
4,457
0.23
0.04
0.19
Non-cash share-based compensation
5,326
401
4,925
0.23
0.02
0.22
Adjusted (non-GAAP)
$
61,414
$
7,995
$
53,419
$
2.68
$
0.35
$
2.33
Weighted average shares of common stock used in computing reported and non-GAAP diluted earnings per share
22,904
Fiscal Year Ended February 28, 2026
(Loss) Income
Diluted (Loss) Earnings Per Share
Before Tax
Tax
Net of Tax
Before Tax
Tax
Net of Tax
As reported (GAAP)
$
(838,838
)
$
60,144
$
(898,982
)
$
(36.47
)
$
2.61
$
(39.08
)
Asset impairment charges
885,861
19,788
866,073
38.35
0.86
37.49
CEO succession costs
3,484
153
3,331
0.15
0.01
0.14
EPA compliance costs
4,354
(1,114
)
5,468
0.19
(0.05
)
0.24
Intangible asset reorganization (7)
—
(74,015
)
74,015
—
(3.20
)
3.20
Restructuring charges
3,005
421
2,584
0.13
0.02
0.11
Subtotal
57,866
5,377
52,489
2.51
0.23
2.27
Amortization of intangible assets
17,059
2,933
14,126
0.74
0.13
0.61
Non-cash share-based compensation
16,885
1,444
15,441
0.73
0.06
0.67
Adjusted (non-GAAP)
$
91,810
$
9,754
$
82,056
$
3.97
$
0.42
$
3.55
Weighted average shares of common stock used in computing:
Diluted loss per share, as reported
23,002
Adjusted diluted earnings per share (non-GAAP)
23,099
Reconciliation of Non-GAAP Financial Measures – GAAP (Loss) Income and Diluted (Loss) Earnings Per Share to Adjusted Income and Adjusted Diluted Earnings Per Share (Non-GAAP) (1)
(Unaudited) (in thousands, except per share data)
Fiscal Year Ended February 28, 2025
Income
Diluted Earnings Per Share
Before Tax
Tax
Net of Tax
Before Tax
Tax
Net of Tax
As reported (GAAP)
$
91,664
$
(32,087
)
$
123,751
$
3.97
$
(1.39
)
$
5.37
Acquisition-related expenses
3,035
—
3,035
0.13
—
0.13
Asset impairment charges
51,455
3,895
47,560
2.23
0.17
2.06
Barbados tax reform (12)
—
(6,045
)
6,045
—
(0.26
)
0.26
Intangible asset reorganization
—
64,604
(64,604
)
—
2.80
(2.80
)
Restructuring charges
14,822
1,433
13,389
0.64
0.06
0.58
Subtotal
160,976
31,800
129,176
6.98
1.38
5.60
Amortization of intangible assets
18,875
2,798
16,077
0.82
0.12
0.70
Non-cash share-based compensation
21,376
1,240
20,136
0.93
0.05
0.87
Adjusted (non-GAAP)
$
201,227
$
35,838
$
165,389
$
8.72
$
1.55
$
7.17
Weighted average shares of common stock used in computing reported and non-GAAP diluted earnings per share
23,065
Selected Consolidated Balance Sheet and Cash Flow Information
(Unaudited) (in thousands)
Last Day of February,
2026
2025
Balance Sheet:
Cash and cash equivalents
$
18,886
$
18,867
Receivables, net
361,300
428,330
Inventory
455,812
452,615
Total assets, current
865,519
931,712
Total assets
2,115,548
3,132,083
Total liabilities, current
504,965
466,259
Total long-term liabilities
812,386
982,385
Total debt
780,811
916,894
Stockholders’ equity
798,197
1,683,439
Fiscal Years Ended
Last Day of February,
2026
2025
Cash Flow:
Depreciation and amortization
$
53,295
$
55,048
Net cash provided by operating activities
171,136
113,213
Capital and intangible asset expenditures
39,226
30,072
Net debt (repayments) proceeds
(136,306
)
249,900
Payments for repurchases of common stock
1,915
103,188
Reconciliation of Non-GAAP Financial Measures – GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (1) (2)
(Unaudited) (in thousands)
Fiscal Years Ended
Last Day of February,
2026
2025
Net cash provided by operating activities (GAAP)
$
171,136
$
113,213
Less: Capital and intangible asset expenditures
(39,226
)
(30,072
)
Free cash flow (non-GAAP)
$
131,910
$
83,141
Reconciliation of Non-GAAP Financial Measures – Net Leverage Ratio (Non-GAAP) (1) (9)
(Unaudited) (in thousands)
Fiscal Year Ended February 28, 2026
Adjusted EBITDA (non-GAAP) (13)
$
185,785
Permitted adjustments per the credit agreement (9)
11,118
Adjusted EBITDA per the credit agreement
$
196,903
Total borrowings under the credit agreement, as reported (GAAP)
$
785,544
Less: Unrestricted cash and cash equivalents
(23,683
)
Net debt
$
761,861
Net leverage ratio (non-GAAP) (9)
3.87
Fiscal 2027 Outlook for Net Sales Revenue
(Unaudited) (in thousands)
Consolidated:
Fiscal 2026
Fiscal 2027 Outlook
Net sales revenue
$
1,786,290
$
1,751,000
—
$
1,822,000
Net sales revenue (decline) growth
(2.0
)%
—
2.0
%
Reconciliation of Non-GAAP Financial Measures – Fiscal 2027 Outlook for GAAP Net Income to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
and Adjusted EBITDA (Non-GAAP) (1) (Unaudited) (in thousands)
Fiscal Year Ended
February 28, 2026
Fiscal 2027 Outlook
Net (loss) income, as reported (GAAP)
$
(898,982
)
$
83,016
—
$
97,223
Interest expense
57,739
49,000
—
47,000
Income tax expense
60,144
36,538
—
38,031
Depreciation and amortization
53,295
52,000
—
48,000
EBITDA (non-GAAP)
(727,804
)
220,554
—
230,254
Add: Asset impairment charges
885,861
—
—
—
CEO succession costs
3,484
—
—
—
EPA compliance costs
4,354
—
—
—
Gain on sale of distribution facility (14)
—
(54,854
)
—
(54,854
)
Restructuring charges
3,005
—
—
—
Non-cash share-based compensation
16,885
24,000
—
22,000
Adjusted EBITDA (non-GAAP)
$
185,785
$
189,700
—
$
197,400
Adjusted EBITDA (non-GAAP) growth
2.1
%
—
6.3
%
Reconciliation of Non-GAAP Financial Measures – Fiscal 2027 Outlook for GAAP Diluted EPS to Adjusted Diluted EPS (Non-GAAP) and GAAP Effective Tax Rate to Adjusted Effective Tax Rate (Non-GAAP) (1) (Unaudited)
Fiscal Year Ended
February 28, 2026
Outlook Fiscal 2027
Tax Rate Outlook
Fiscal 2027
Diluted (loss) earnings per share, as reported (GAAP)
$
(39.08
)
$
3.57
—
$
4.18
30.5
%
—
28.1
%
Asset impairment charges
38.35
—
—
—
CEO succession costs
0.15
—
—
—
EPA compliance costs
0.19
—
—
—
Restructuring charges
0.13
—
—
—
Gain on sale of distribution facility
—
(2.36
)
—
(2.36
)
Amortization of intangible assets
0.74
0.64
—
0.60
Non-cash share-based compensation
0.73
1.03
—
0.95
Income tax effect of adjustments
2.19
0.37
—
0.38
(3.5
)%
—
(3.1
)%
Adjusted diluted EPS (non-GAAP)
$
3.55
$
3.25
—
$
3.75
27.0
%
—
25.0
%
Adjusted diluted EPS (non-GAAP) (decline) growth
(8.5
)%
—
5.6
%
Reconciliation of Non-GAAP Financial Measures – Fiscal 2027 Outlook for GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (1) (2)
(Unaudited) (in thousands)
Fiscal Year Ended
February 28, 2026
Fiscal 2027 Outlook
Net cash provided by operating activities (GAAP)
$
171,136
$
117,000
—
$
128,000
Less: Capital and intangible asset expenditures
(39,226
)
(32,000
)
—
(28,000
)
Free cash flow (non-GAAP)
$
131,910
$
85,000
—
$
100,000
Free cash flow (non-GAAP) (decline)
(35.6
)%
—
(24.2
)%
HELEN OF TROY LIMITED AND SUBSIDIARIES
Notes to Press Release
(1)
This press release contains non-GAAP financial measures. Adjusted Operating Income, Adjusted Operating Margin, Adjusted Effective Tax Rate, Adjusted Income, Adjusted Diluted Earnings Per Share, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Net Leverage Ratio (“Non-GAAP Financial Measures”) that are discussed in the accompanying press release or in the preceding tables may be considered non-GAAP financial measures as defined by SEC Regulation G, Rule 100. Accordingly, the Company is providing the preceding tables that reconcile these measures to their corresponding GAAP-based financial measures. The Company is unable to present a quantitative reconciliation of forward-looking expected net leverage ratio to its most directly comparable forward-looking GAAP financial measure because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP financial measure without unreasonable effort or expense. In addition, the Company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors. The Company believes that these Non-GAAP Financial Measures provide useful information to management and investors regarding financial and business trends relating to its financial condition and results of operations. The Company believes that these Non-GAAP Financial Measures, in combination with the Company’s financial results calculated in accordance with GAAP, provide investors with additional perspective regarding the impact of certain charges and benefits on applicable income, margin and earnings per share measures. The Company also believes that these Non-GAAP Financial Measures reflect the operating performance of its business and facilitate a more direct comparison of the Company’s performance with its competitors. The material limitation associated with the use of the Non-GAAP Financial Measures is that the Non-GAAP Financial Measures do not reflect the full economic impact of the Company’s activities. These Non-GAAP Financial Measures are not prepared in accordance with GAAP, are not an alternative to GAAP financial measures and may be calculated differently than non-GAAP financial measures disclosed by other companies. Accordingly, undue reliance should not be placed on non-GAAP financial measures.
(2)
Free cash flow represents net cash provided by operating activities less capital and intangible asset expenditures.
(3)
Non-cash asset impairment charges were recognized to reduce goodwill and other intangible assets during fiscal 2026, which impacted both the Beauty & Wellness and Home & Outdoor segments, and to reduce the goodwill and definite-lived trade name of the Company’s Drybar business during the fourth quarter of fiscal 2025, which impacted the Beauty & Wellness segment.
(4)
Organic business refers to net sales revenue associated with product lines or brands after the first twelve months from the date the product line or brand is acquired, excluding the impact that foreign currency remeasurement had on reported net sales revenue. Net sales revenue from internally developed brands or product lines is considered Organic business activity.
(5)
On December 16, 2024, the Company completed the acquisition of Olive & June. As such, the three months ended February 28, 2025 and fiscal 2025 include approximately eleven weeks of operating results from Olive & June, and fiscal 2026 includes a full year of operating results. Olive & June sales prior to the first annual anniversary of the acquisition are reported in Acquisition. Sales from Olive & June subsequent to the first annual anniversary of the acquisition are reported in Organic business.
(6)
Settlement costs related to EPA packaging and labeling compliance for certain products in the air filtration, water filtration and humidification categories within the Beauty & Wellness segment (“EPA compliance costs”).
(7)
Represents a transitional income tax benefit resulting from the recognition of deferred tax assets in connection with the reorganization of the Company’s intangible assets in fiscal 2025 and income tax expense from the recognition of valuation allowances in fiscal 2026 on the related deferred tax assets (“intangible asset reorganization”).
(8)
Accounts receivable turnover uses 12 months trailing net sales revenue. The current and four prior quarters’ ending balances of trade accounts receivable are used for the purposes of computing the average balance component as required by the particular measure.
(9)
Net leverage ratio is calculated as (a) total borrowings under the Company’s credit agreement, net of unrestricted cash and cash equivalents, including readily marketable obligations issued, guaranteed or insured by the U.S. with maturities of two years or less, at the end of the current period, divided by (b) Adjusted EBITDA per the Company’s credit agreement (calculated as EBITDA plus non-cash charges and certain allowed addbacks, less certain non-cash income, plus the pro forma effect of acquisitions and certain pro forma run-rate cost savings for acquisitions and dispositions, as applicable for the trailing twelve months ended as of the current period).
(10)
Domestic net sales revenue includes net sales revenue from the U.S. and Canada.
(11)
Represents costs incurred in connection with the departure of the Company’s former CEO primarily related to severance and recruitment costs (“CEO succession costs”).
(12)
Represents a discrete tax charge to revalue existing deferred tax liabilities as a result of Barbados enacting a domestic corporate income tax rate of 9%, effective beginning with the Company’s fiscal year 2025 (“Barbados tax reform”).
(13)
See reconciliation of Adjusted EBITDA to the most directly comparable GAAP-based financial measure (net income (loss)) in the accompanying tables to this press release.
(14)
Represents a pre-tax gain on the sale of the Company’s distribution facility in Southaven, Mississippi which was completed on April 14, 2026, during the first quarter of fiscal 2027. Refer to the Subsequent Event - Sale of Distribution Facility section above for further details.