Helen of Troy Limited Reports Third Quarter Fiscal 2026 Results

EL PASO, Texas--( BUSINESS WIRE)--Helen of Troy Limited (NASDAQ: HELE), designer, developer, and worldwide marketer of branded consumer home, outdoor, beauty, and wellness products, today reported results for the three-month period ended November 30, 2025.

Executive Summary - Third Quarter of Fiscal 2026 Compared to Fiscal 2025

Mr. G. Scott Uzzell, Chief Executive Officer, stated: “We delivered third quarter results in line with our outlook and are making progress toward stabilizing the business despite the challenging external environment. We grew revenue in key brands – OXO, Osprey, and Olive & June – expanded Organic DTC sales and generated positive free cash flow despite tariff-related headwinds.

We are sharpening our priorities and placing the consumer at the center of everything we do – investing in innovation, strengthening brand loyalty, and advancing commercial excellence. I am confident that we are taking the right steps to position us to deliver sustained revenue and profit growth and create long-term value for all stakeholders.”

Three Months Ended November 30,

(in thousands) (unaudited)

Home & Outdoor

Beauty & Wellness

Total

Fiscal 2025 sales revenue, net

246,109

284,597

530,706

Organic business (3)

(17,468

)

(39,673

)

(57,141

)

Impact of foreign currency

996

596

1,592

Acquisition (4)

—

37,672

Change in sales revenue, net

(16,472

)

(1,405

)

(17,877

)

Fiscal 2026 sales revenue, net

229,637

283,192

512,829

Total net sales revenue growth (decline)

(6.7

(0.5

(3.4

Organic business

(7.1

(13.9

(10.8

Impact of foreign currency

0.4

0.2

0.3

Acquisition

—

13.2

7.1

Operating margin (GAAP)

Fiscal 2026

—

(2.9

(1.6

Fiscal 2025

16.4

12.2

14.2

Adjusted operating margin (non-GAAP) (1)

Fiscal 2026

11.9

13.8

12.9

Fiscal 2025

18.4

15.0

16.6

Consolidated Results - Third Quarter Fiscal 2026 Compared to Third Quarter Fiscal 2025

On an adjusted basis (non-GAAP) for the third quarters of fiscal 2026 and 2025, excluding asset impairment charges (2), intangible asset reorganization (5), restructuring charges, amortization of intangible assets and non-cash share-based compensation, as applicable:

Segment Results - Third Quarter Fiscal 2026 Compared to Third Quarter Fiscal 2025

Home & Outdoor net sales revenue decreased $16.5 million, or 6.7%, to $229.6 million. The decrease was primarily driven by:

These factors were partially offset by the benefit of tariff related price increases, strong demand for travel, technical and lifestyle packs, higher brick and mortar sales in the home category primarily due to strong holiday season orders, and incremental sales from new product launches in the insulated beverageware category.

Home & Outdoor operating loss was $0.1 million, or 0.0% of segment net sales revenue, compared to operating income of $40.3 million, or 16.4% of segment net sales revenue. Operating loss in the third quarter of fiscal 2026 included $24.0 million of pre-tax asset impairment charges. The remaining 590 basis point decrease in segment operating margin was primarily due to:

These factors were partially offset by reduced marketing expense and lower commodity and product costs. Adjusted operating income decreased 39.7% to $27.3 million, or 11.9% of segment net sales revenue.

Beauty & Wellness net sales revenue decreased $1.4 million, or 0.5%, to $283.2 million. The decrease was primarily driven by a decrease from Organic business of $39.7 million, or 13.9%, primarily due to:

The Organic business decline was partially offset by the contribution from the acquisition of Olive & June of $37.7 million, or 13.2%, to segment net sales revenue.

Beauty & Wellness operating loss was $8.3 million, or (2.9)% of segment net sales revenue, compared to operating income of $34.8 million, or 12.2% of segment net sales revenue. Operating loss in the third quarter of fiscal 2026 included $41.9 million of pre-tax asset impairment charges. The remaining 30 basis point decrease in segment operating margin was primarily due to:

These factors were partially offset by lower retail trade and promotional expense, the favorable comparative impact of restructuring costs of $2.7 million recognized in the prior year period, the favorable impact of the acquisition of Olive & June and lower commodity and product costs. Adjusted operating income decreased 8.5% to $39.0 million, or 13.8% of segment net sales revenue.

Balance Sheet and Cash Flow - Third Quarter Fiscal 2026 Compared to Third Quarter Fiscal 2025

Fiscal 2026 Annual Outlook

The Company expects fiscal year 2026 consolidated net sales revenue in the range of $1.758 billion to $1.773 billion. The consolidated net sales outlook reflects the following expectations by segment:

The sales outlook reflects the Company’s view of continued consumer spending softness, especially in certain discretionary categories, as well as its view of increased macro uncertainty, a more promotional environment, and an increasingly stretched consumer, including the impact from:

The Company is continuing to assess the incremental tariff cost exposure in light of continuing changes to global tariff policies and the full extent of its potential mitigation plans, as well as the associated timing to implement such plans and realize the anticipated benefits. The Company is also continuing to assess the disruptive impact that tariffs are having on the Company’s markets and retailer adaptation to tariff costs and uncertainty. To mitigate the Company’s risk of ongoing exposure to tariffs, it has initiated significant efforts to diversify its production outside of China into regions where it expects tariffs or overall costs to be lower and to source the same product in more than one region, to the extent it is possible and not cost-prohibitive. The Company continues to expect to reduce its cost of goods sold exposed to China tariffs to between 25% and 30% by the end of fiscal 2026. The Company continues to implement other mitigation actions, which include cost reductions from suppliers and strategic customer pricing adjustments to mitigate tariff headwinds. In addition to the uncertainty from evolving global tariff policies, the Company expects unfavorable cascading impacts on inflation, consumer confidence, employment, and overall macroeconomic conditions, all of which are impossible to predict at this time and outside of the Company’s control.

In the first quarter of fiscal 2026, the Company adjusted its measures to reduce costs and preserve cash flow, outlined in its fourth quarter fiscal 2025 earnings release, as the environment continued to evolve. While the Company resumed targeted growth investments during the second and third quarters of fiscal 2026, the Company remains disciplined in its approach given continued tariff volatility. The measures in place continue to include the following:

Through the combination of tariff mitigation actions and these additional cost reduction measures, the Company now believes it can reduce the net tariff impact on operating income to less than $30 million, compared to the prior expectation of less than $20 million, based on tariffs currently in place.

The Company expects fiscal 2026 GAAP diluted loss per share in the range of $36.07 to $35.57 and non-GAAP adjusted diluted earnings per share in the range of $3.25 to $3.75.

The Company’s adjusted diluted EPS outlook reflects:

The Company continues to expect these factors to be partially offset by cost reduction measures implemented in the first nine months and continuing throughout the year. The Company’s consolidated net sales and EPS outlook also reflects the following assumptions:

The likelihood, timing and potential impact of a significant or prolonged recession, any fiscal 2026 acquisitions and divestitures, future asset impairment charges, future foreign currency fluctuations, additional interest rate changes, or share repurchases are unknown and cannot be reasonably estimated; therefore, they are not included in the Company’s outlook.

Credit Agreement Amendment

On November 25, 2025, the Company entered into an amendment (the “Amendment”) to its existing credit agreement dated February 15, 2024 (“the Credit Agreement”), which provides for the following:

Fiscal Quarter Ending

Maximum

Leverage Ratio

November 30, 2025

4.50 to 1.00

February 28, 2026 through August 31, 2026

4.50 to 1.00

November 30, 2026

4.00 to 1.00

February 28, 2027 through May 31, 2027

3.75 to 1.00

August 31, 2027 and each fiscal quarter thereafter

3.50 to 1.00

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, January 8, 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 January 8, 2026, until 11:59 p.m. Eastern Time on January 22, 2026, and can be accessed by dialing (844) 512-2921 and entering replay pin number 13757693. 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 condensed 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, earnings per share 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, 2025, 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, 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, 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, risks associated with the use of licensed trademarks from or to third parties, 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, Mexico or Vietnam, including by the current U.S. presidential administration which has promoted and implemented plans to raise tariffs and pursue other trade policies intended to restrict imports, or any retaliatory trade measures taken by China, Mexico or Vietnam, 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 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 legislation enacted in Bermuda and Barbados in response to the European Union’s review of harmful tax competition and additional focus on compliance with economic substance requirements by Bermuda and Barbados, the risks associated with accounting for tax positions and the resolution of tax disputes, the risks associated with product recalls, product liability and other claims against the Company, and associated financial risks including but not limited to, increased costs of raw materials, energy and transportation, significant additional impairment of the Company’s goodwill, indefinite-lived and definite-lived intangible assets or other long-lived assets, risks associated with foreign currency exchange rate fluctuations, the risks to the Company’s 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 its financing arrangements, and 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. 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

Condensed Consolidated Statements of (Loss) Income (4)

(Unaudited) (in thousands, except per share data)

Three Months Ended November 30,

2025

2024

Sales revenue, net

512,829

100.0

530,706

100.0

Cost of goods sold

272,485

53.1

271,378

51.1

Gross profit

240,344

46.9

259,328

48.9

Selling, general and administrative expense (“SG&A”)

182,808

35.6

180,692

34.0

Asset impairment charges

65,906

12.9

—

Restructuring charges

—

3,518

0.7

Operating (loss) income

(8,370

)

(1.6

75,118

14.2

Non-operating income, net

211

—

198

—

Interest expense

15,855

3.1

12,164

2.3

(Loss) income before income tax

(24,014

)

(4.7

63,152

11.9

Income tax expense

60,042

11.7

13,536

2.6

Net (loss) income

(84,056

)

(16.4

49,616

9.3

Diluted (loss) earnings per share

(3.65

)

2.17

Weighted average shares of common stock used in computing diluted (loss) earnings per share

23,035

22,882

Nine Months Ended November 30,

2025

2024

Sales revenue, net

1,316,265

100.0

1,421,774

100.0

Cost of goods sold

710,229

54.0

743,297

52.3

Gross profit

606,036

46.0

678,477

47.7

SG&A

527,471

40.1

530,865

37.3

Asset impairment charges

806,685

61.3

—

Restructuring charges

3,005

0.2

6,879

0.5

Operating (loss) income

(731,125

)

(55.5

140,733

9.9

Non-operating income, net

768

0.1

468

—

Interest expense

43,884

3.3

37,923

2.7

(Loss) income before income tax

(774,241

)

(58.8

103,278

7.3

Income tax expense

69,176

5.3

30,444

2.1

Net (loss) income

(843,417

)

(64.1

72,834

5.1

Diluted (loss) earnings per share

(36.70

)

3.15

Weighted average shares of common stock used in computing diluted (loss) earnings per share

22,979

23,118

Consolidated Net Sales by Geographic Region (8)

(Unaudited) (in thousands)

Three Months Ended November 30,

2025

2024

Domestic sales revenue, net

393,267

76.7

400,539

75.5

International sales revenue, net

119,562

23.3

130,167

24.5

Total sales revenue, net

512,829

100.0

530,706

100.0

Nine Months Ended November 30,

2025

2024

Domestic sales revenue, net

1,001,723

76.1

1,066,969

75.0

International sales revenue, net

314,542

23.9

354,805

25.0

Total sales revenue, net

1,316,265

100.0

1,421,774

100.0

Reconciliation of Non-GAAP Financial Measures – GAAP Operating (Loss) Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (1)

(Unaudited) (in thousands)

Three Months Ended November 30, 2025

Home &

Outdoor

Beauty &

Wellness (4)

Total

Operating loss, as reported (GAAP)

(72

)

—

(8,298

)

(2.9

(8,370

)

(1.6

Asset impairment charges (2)

24,000

10.5

41,906

14.8

65,906

12.9

Subtotal

23,928

10.4

33,608

11.9

57,536

11.2

Amortization of intangible assets

1,377

0.6

2,331

0.8

3,708

0.7

Non-cash share-based compensation

2,013

0.9

3,017

1.1

5,030

1.0

Adjusted operating income (non-GAAP)

27,318

11.9

38,956

13.8

66,274

12.9

Three Months Ended November 30, 2024

Home &

Outdoor

Beauty &

Wellness

Total

Operating income, as reported (GAAP)

40,313

16.4

34,805

12.2

75,118

14.2

Restructuring charges

770

0.3

2,748

1.0

3,518

0.7

Subtotal

41,083

16.7

37,553

13.2

78,636

14.8

Amortization of intangible assets

1,770

0.7

2,777

1.0

4,547

0.9

Non-cash share-based compensation

2,476

1.0

2,254

0.8

4,730

0.9

Adjusted operating income (non-GAAP)

45,329

18.4

42,584

15.0

87,913

16.6

Nine Months Ended November 30, 2025

Home &

Outdoor

Beauty &

Wellness (4)

Total

Operating loss, as reported (GAAP)

(286,443

)

(46.5

(444,682

)

(63.5

(731,125

)

(55.5

Asset impairment charges

328,632

53.3

478,053

68.3

806,685

61.3

CEO succession costs (9)

1,742

0.3

1,742

0.2

3,484

0.3

Restructuring charges

1,501

0.2

1,504

0.2

3,005

0.2

Subtotal

45,432

7.4

36,617

5.2

82,049

6.2

Amortization of intangible assets

4,532

0.7

8,050

1.2

12,582

1.0

Non-cash share-based compensation

6,295

1.0

8,403

1.2

14,698

1.1

Adjusted operating income (non-GAAP)

56,259

9.1

53,070

7.6

109,329

8.3

Nine Months Ended November 30, 2024

Home &

Outdoor

Beauty &

Wellness

Total

Operating income, as reported (GAAP)

87,315

12.7

53,418

7.3

140,733

9.9

Restructuring charges

1,728

0.3

5,151

0.7

6,879

0.5

Subtotal

89,043

13.0

58,569

8.0

147,612

10.4

Amortization of intangible assets

5,303

0.8

8,303

1.1

13,606

1.0

Non-cash share-based compensation

8,303

1.2

7,747

1.1

16,050

1.1

Adjusted operating income (non-GAAP)

102,649

15.0

74,619

10.1

177,268

12.5

Reconciliation of Non-GAAP Financial Measures – GAAP Operating (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 November 30, 2025

Home &

Outdoor

Beauty &

Wellness (4)

Total

Operating loss, as reported (GAAP)

(72

)

—

(8,298

)

(2.9

(8,370

)

(1.6

Depreciation and amortization

6,075

2.6

6,762

2.4

12,837

2.5

Non-operating income, net

—

211

0.1

211

—

EBITDA (non-GAAP)

6,003

2.6

(1,325

)

(0.5

4,678

0.9

Add: Asset impairment charges

24,000

10.5

41,906

14.8

65,906

12.9

Non-cash share-based compensation

2,013

0.9

3,017

1.1

5,030

1.0

Adjusted EBITDA (non-GAAP)

32,016

13.9

43,598

15.4

75,614

14.7

Three Months Ended November 30, 2024

Home &

Outdoor

Beauty &

Wellness

Total

Operating income, as reported (GAAP)

40,313

16.4

34,805

12.2

75,118

14.2

Depreciation and amortization

6,336

2.6

6,886

2.4

13,222

2.5

Non-operating income, net

—

198

0.1

198

—

EBITDA (non-GAAP)

46,649

19.0

41,889

14.7

88,538

16.7

Add: Restructuring charges

770

0.3

2,748

1.0

3,518

0.7

Non-cash share-based compensation

2,476

1.0

2,254

0.8

4,730

0.9

Adjusted EBITDA (non-GAAP)

49,895

20.3

46,891

16.5

96,786

18.2

Nine Months Ended November 30, 2025

Home &

Outdoor

Beauty &

Wellness (4)

Total

Operating loss, as reported (GAAP)

(286,443

)

(46.5

(444,682

)

(63.5

(731,125

)

(55.5

Depreciation and amortization

18,674

3.0

21,107

3.0

39,781

3.0

Non-operating income, net

—

768

0.1

768

0.1

EBITDA (non-GAAP)

(267,769

)

(43.4

(422,807

)

(60.4

(690,576

)

(52.5

Add: Asset impairment charges

328,632

53.3

478,053

68.3

806,685

61.3

CEO succession costs

1,742

0.3

1,742

0.2

3,484

0.3

Restructuring charges

1,501

0.2

1,504

0.2

3,005

0.2

Non-cash share-based compensation

6,295

1.0

8,403

1.2

14,698

1.1

Adjusted EBITDA (non-GAAP)

70,401

11.4

66,895

9.6

137,296

10.4

Nine Months Ended November 30, 2024

Home &

Outdoor

Beauty &

Wellness

Total

Operating income, as reported (GAAP)

87,315

12.7

53,418

7.3

140,733

9.9

Depreciation and amortization

19,573

2.9

21,277

2.9

40,850

2.9

Non-operating income, net

—

468

0.1

468

—

EBITDA (non-GAAP)

106,888

15.6

75,163

10.2

182,051

12.8

Add: Restructuring charges

1,728

0.3

5,151

0.7

6,879

0.5

Non-cash share-based compensation

8,303

1.2

7,747

1.1

16,050

1.1

Adjusted EBITDA (non-GAAP)

116,919

17.0

88,061

12.0

204,980

14.4

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 November 30,

2025

2024

Net (loss) income, as reported (GAAP)

(84,056

)

(16.4

49,616

9.3

Interest expense

15,855

3.1

12,164

2.3

Income tax expense

60,042

11.7

13,536

2.6

Depreciation and amortization

12,837

2.5

13,222

2.5

EBITDA (non-GAAP)

4,678

0.9

88,538

16.7

Add: Asset impairment charges

65,906

12.9

—

Restructuring charges

—

3,518

0.7

Non-cash share-based compensation

5,030

1.0

4,730

0.9

Adjusted EBITDA (non-GAAP)

75,614

14.7

96,786

18.2

Nine Months Ended November 30,

2025

2024

Net (loss) income, as reported (GAAP)

(843,417

)

(64.1

72,834

5.1

Interest expense

43,884

3.3

37,923

2.7

Income tax expense

69,176

5.3

30,444

2.1

Depreciation and amortization

39,781

3.0

40,850

2.9

EBITDA (non-GAAP)

(690,576

)

(52.5

182,051

12.8

Add: Asset impairment charges

806,685

61.3

—

CEO succession costs

3,484

0.3

—

Restructuring charges

3,005

0.2

6,879

0.5

Non-cash share-based compensation

14,698

1.1

16,050

1.1

Adjusted EBITDA (non-GAAP)

137,296

10.4

204,980

14.4

Quarterly Period Ended

Twelve Months Ended

November 30, 2025

February

May

August

November

Net income (loss), as reported (GAAP)

50,917

(450,718

)

(308,643

)

(84,056

)

(792,500

)

Interest expense

13,999

13,808

14,221

15,855

57,883

Income tax (benefit) expense

(62,531

)

30,180

(21,046

)

60,042

6,645

Depreciation and amortization

14,198

14,084

12,860

12,837

53,979

EBITDA (non-GAAP)

16,583

(392,646

)

(302,608

)

4,678

(673,993

)

Add: Acquisition-related expenses

3,035

—

3,035

Asset impairment charges

51,455

414,385

326,394

65,906

858,140

CEO succession costs

—

3,484

—

3,484

Restructuring charges

7,943

—

3,005

—

10,948

Non-cash share-based compensation

5,326

296

9,372

5,030

20,024

Adjusted EBITDA (non-GAAP)

84,342

25,519

36,163

75,614

221,638

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 November 30, 2025

(Loss) Income

Diluted (Loss) Earnings Per Share

Before Tax

Tax

Net of Tax

Before Tax

Tax

Net of Tax

As reported (GAAP)

(24,014

)

60,042

(84,056

)

(1.04

)

2.61

(3.65

)

Asset impairment charges

65,906

(6,232

)

72,138

2.84

(0.27

)

3.11

Intangible asset reorganization (5)

—

(44,056

)

44,056

—

(1.90

)

1.90

Subtotal

41,892

9,754

32,138

1.81

0.42

1.39

Amortization of intangible assets

3,708

638

3,070

0.16

0.03

0.13

Non-cash share-based compensation

5,030

521

4,509

0.22

0.02

0.19

Adjusted (non-GAAP)

50,630

10,913

39,717

2.18

0.47

1.71

Weighted average shares of common stock used in computing:

Diluted loss per share, as reported

23,035

Adjusted diluted earnings per share (non-GAAP)

23,180

Three Months Ended November 30, 2024

Income

Diluted Earnings Per Share

Before Tax

Tax

Net of Tax

Before Tax

Tax

Net of Tax

As reported (GAAP)

63,152

13,536

49,616

2.76

0.59

2.17

Restructuring charges

3,518

316

3,202

0.15

0.01

0.14

Subtotal

66,670

13,852

52,818

2.91

0.61

2.31

Amortization of intangible assets

4,547

664

3,883

0.20

0.03

0.17

Non-cash share-based compensation

4,730

354

4,376

0.21

0.02

0.19

Adjusted (non-GAAP)

75,947

14,870

61,077

3.32

0.65

2.67

Weighted average shares of common stock used in computing reported and non-GAAP diluted earnings per share

22,882

Nine Months Ended November 30, 2025

(Loss) Income

Diluted (Loss) Earnings Per Share

Before Tax

Tax

Net of Tax

Before Tax

Tax

Net of Tax

As reported (GAAP)

(774,241

)

69,176

(843,417

)

(33.69

)

3.01

(36.70

)

Asset impairment charges

806,685

4,418

802,267

34.99

0.19

34.80

CEO succession costs

3,484

153

3,331

0.15

0.01

0.14

Intangible asset reorganization

—

(74,015

)

74,015

—

(3.21

)

3.21

Restructuring charges

3,005

421

2,584

0.13

0.02

0.11

Subtotal

38,933

153

38,780

1.69

0.01

1.68

Amortization of intangible assets

12,582

2,189

10,393

0.55

0.09

0.45

Non-cash share-based compensation

14,698

1,123

13,575

0.64

0.05

0.59

Adjusted (non-GAAP)

66,213

3,465

62,748

2.87

0.15

2.72

Weighted average shares of common stock used in computing:

Diluted loss per share, as reported

22,979

Adjusted diluted earnings per share (non-GAAP)

23,054

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)

Nine Months Ended November 30, 2024

Income

Diluted Earnings Per Share

Before Tax

Tax

Net of Tax

Before Tax

Tax

Net of Tax

As reported (GAAP)

103,278

30,444

72,834

4.47

1.32

3.15

Barbados tax reform (10)

—

(6,045

)

6,045

—

(0.26

)

0.26

Restructuring charges

6,879

619

6,260

0.30

0.03

0.27

Subtotal

110,157

25,018

85,139

4.76

1.08

3.68

Amortization of intangible assets

13,606

1,986

11,620

0.59

0.09

0.50

Non-cash share-based compensation

16,050

839

15,211

0.69

0.04

0.66

Adjusted (non-GAAP)

139,813

27,843

111,970

6.05

1.20

4.84

Weighted average shares of common stock used in computing reported and non-GAAP diluted earnings per share

23,118

Selected Consolidated Balance Sheet and Cash Flow Information

(Unaudited) (in thousands)

November 30,

2025

2024

Balance Sheet:

Cash and cash equivalents

27,137

40,804

Receivables, net

435,977

456,170

Inventory

505,265

450,740

Total assets, current

1,004,112

996,308

Total assets

2,340,809

2,973,131

Total liabilities, current

554,063

517,772

Total long-term liabilities

934,488

827,183

Total debt

892,393

733,891

Stockholders’ equity

852,258

1,628,176

Nine Months Ended November 30,

2025

2024

Cash Flow:

Depreciation and amortization

39,781

40,850

Net cash provided by operating activities

59,813

78,236

Capital and intangible asset expenditures

31,006

22,155

Net debt (repayments) proceeds

(24,319

)

67,263

Payments for repurchases of common stock

1,706

103,174

Reconciliation of Non-GAAP Financial Measures – GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (1) (7)

(Unaudited) (in thousands)

Nine Months Ended November 30,

2025

2024

Net cash provided by operating activities (GAAP)

59,813

78,236

Less: Capital and intangible asset expenditures

(31,006

)

(22,155

)

Free cash flow (non-GAAP)

28,807

56,081

Reconciliation of Non-GAAP Financial Measures – Net Leverage Ratio (Non-GAAP) (1) (11)

(Unaudited) (in thousands)

Quarterly Period Ended

Twelve Months Ended

November 30, 2025

February

May

August

November

Adjusted EBITDA (non-GAAP) (12)

84,342

25,519

36,163

75,614

221,638

Permitted adjustments per the credit agreement (11)

—

6,946

Pro forma effect of the Olive & June acquisition (11)

—

1,010

Adjusted EBITDA per the credit agreement

84,342

25,519

36,163

75,614

229,594

Total borrowings under the credit agreement, as reported (GAAP)

897,531

Less: Unrestricted cash and cash equivalents

(32,001

)

Net debt

865,530

Net leverage ratio (non-GAAP) (11)

3.77

Fiscal 2026 Outlook for Net Sales Revenue

(Unaudited) (in thousands)

Consolidated:

Fiscal 2025

Fiscal 2026 Outlook

Net sales revenue

1,907,665

1,758,000

—

1,773,000

Net sales revenue decline

(7.8

—

(7.1

Reconciliation of Non-GAAP Financial Measures – Fiscal 2026 Outlook for GAAP Diluted (Loss) Earnings Per Share to Adjusted Diluted Earnings Per Share

(Non-GAAP) and GAAP Effective Tax Rate to Adjusted Effective Tax Rate (Non-GAAP) (1)

(Unaudited)

Nine Months Ended

November 30, 2025

Outlook for the

Balance of the

Fiscal Year

(Three Months)

Fiscal

2026 Outlook

Tax Rate

Fiscal 2026 Outlook

Diluted (loss) earnings per share, as reported (GAAP)

(36.70

)

0.63

1.13

(36.07

)

(35.57

)

(8.7

(8.9

Asset impairment charges

34.99

—

34.99

CEO succession costs

0.15

—

0.15

Restructuring charges

0.13

—

0.13

Amortization of intangible assets

0.55

0.20

0.75

Non-cash share-based compensation

0.64

0.22

0.86

Income tax effect of adjustments (13)

2.86

(0.42

)

(0.42

)

2.44

23.4

22.3

Adjusted diluted earnings per share (non-GAAP)

2.72

0.53

1.03

3.25

3.75

14.7

13.4

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 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)

Non-cash asset impairment charges were recognized, during the three and nine months ended November 30, 2025, to reduce goodwill and other intangible assets, which impacted both the Beauty & Wellness and Home & Outdoor segments.

(3)

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.

(4)

The three and nine months ended November 30, 2025 includes a full quarter of operating results from Olive & June, acquired on December 16, 2024. Olive & June sales are reported in Acquisition.

(5)

Represents income tax expense from the recognition of valuation allowances on a deferred tax asset related to the Company’s intangible asset reorganization in fiscal 2025 (“intangible asset reorganization”).

(6)

Accounts receivable turnover uses 12 month 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.

(7)

Free cash flow represents net cash provided by operating activities less capital and intangible asset expenditures.

(8)

Domestic net sales revenue includes net sales revenue from the U.S. and Canada.

(9)

Represents costs incurred in connection with the departure of the Company’s former CEO primarily related to severance and recruitment costs (“CEO succession costs”).

(10)

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”).

(11)

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).

(12)

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.

(13)

Income tax effect of adjustments for the fiscal 2026 outlook is inclusive of the estimated income tax impact of the asset impairment charges recognized during the first nine months ended November 30, 2025 and the intangible asset reorganization income tax adjustment recognized during the first nine months ended November 30, 2025.