Financial Data and Key Metrics Changes - The company reported a consolidated net sales decrease of 3.4%, with organic net sales declining by 10.8% [18][19] - Adjusted EPS was reported at $1.71, reflecting challenges in pricing realization and increased operational costs [23] - Gross profit margin decreased by 200 basis points to 46.9%, primarily due to higher tariffs and inventory obsolescence [21] - SG&A ratio increased by 160 basis points, influenced by the acquisition of Olive & June and higher freight costs [22] Business Segment Performance Changes - Home and outdoor segment net sales declined by 6.7%, while beauty and wellness segment net sales decreased by 0.5% [11][20] - Organic beauty and wellness sales fell by 13.9%, with tariff-related disruptions contributing significantly [20] - Olive & June outperformed expectations with nearly $38 million in sales, indicating strong brand performance amidst overall declines [11] Market Data and Key Metrics Changes - International sales fell by 8.1%, reflecting challenges in global markets [11] - The company noted a bifurcated economy, with high-income households showing robust spending while lower-income consumers are cautious due to inflation [4] Company Strategy and Development Direction - The company is focused on re-energizing brands, improving operational efficiency, and investing in innovation to drive growth [7][9] - Strategic priorities include enhancing consumer engagement, sharpening execution, and fostering brand loyalty [6][8] - The company plans to maintain a disciplined approach to resource allocation, focusing on high-impact opportunities for long-term growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging external environment but expressed confidence in the company's ability to stabilize and grow [4][5] - The focus will shift towards revenue improvement rather than cost reduction, with an emphasis on innovation and brand building [32][55] - Management expects to provide a more detailed fiscal 2027 outlook in April, indicating a commitment to long-term growth strategies [10][24] Other Important Information - The company is implementing mitigation strategies for tariffs, including supplier diversification and cost reductions, to reduce the impact on operating income [17][18] - Inventory levels are projected to be between $475 million and $490 million at year-end, including tariff-related costs [25] Q&A Session Summary Question: Insights on top-line trends and brand performance - Management is encouraged by growth in brands like Osprey and Olive & June, while acknowledging the need for improvement in declining categories [29][30] Question: Earnings guidance and future outlook - Management indicated that the current earnings guidance may serve as a base for future growth, emphasizing the importance of investing in innovation [31][32] Question: Return to consumer-centric innovation - Management is committed to revitalizing underperforming brands and expects to see benefits from these efforts in the upcoming quarters [38][40] Question: Category demand and consumer behavior - Management noted that while some categories are experiencing growth, others are declining, and they are focused on leveraging strong brands to navigate the market [48][50] Question: Leverage and portfolio optimization - Management is focused on improving balance sheet efficiency and is open to evaluating the brand portfolio for long-term value creation [70][72]

Financial Data and Key Metrics Changes - The company reported a consolidated net sales decrease of 3.4%, which was better than expected, with organic net sales declining by 10.8% [27] - Gross profit margin decreased by 200 basis points to 46.9%, primarily due to higher tariffs and unfavorable inventory obsolescence impacts [29] - Adjusted EPS was reported at $1.71, with a year-to-date free cash flow of $29 million despite $58 million in tariff-related cash outflows [32] Business Line Data and Key Metrics Changes - Home and outdoor net sales declined by 6.7%, while beauty and wellness net sales decreased by 0.5%, with organic beauty and wellness sales down by 13.9% [28] - Olive & June outperformed expectations with nearly $38 million in sales, contributing positively to the beauty and wellness segment [17] - Organic direct-to-consumer revenue increased by 21% [19] Market Data and Key Metrics Changes - International sales fell by 8.1%, reflecting challenges in the global market [17] - The company noted a bifurcated economy, with high-income households showing robust spending while lower and middle-income consumers were more cautious due to inflation [5] Company Strategy and Development Direction - The company is focused on investing in brand loyalty, innovation, and talent to restore growth [5][6] - Four strategic priorities were outlined: re-energizing brands and people, adapting structure to center on consumers, strengthening the portfolio for predictable growth, and improving asset efficiency [9] - The company plans to maximize operational efficiency and balance sheet health while investing in long-term growth opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about product innovation and upcoming launches, emphasizing the need to adapt to consumer preferences [6][10] - The company anticipates continued margin pressure due to consumer trade-down behavior and a more promotional environment [37] - Management expects to see improvements in revenue and operating leverage as they shift focus from cost reduction to revenue growth [44][68] Other Important Information - The company is navigating tariff impacts, with a full-year expected impact of $50 million to $55 million on gross profit [25] - Inventory is projected to be between $475 million and $490 million at year-end, including estimated tariff-related costs [34] - The company is evaluating its brand portfolio for potential optimization and divestiture opportunities [82][86] Q&A Session Summary Question: What is the status of declining categories and turnaround efforts? - Management is encouraged by growth in brands like Osprey and Olive & June but acknowledges the need for improvement in declining categories [40] Question: Is this year's earnings guidance the bottom for earnings power? - Management indicated a focus on growth and innovation, suggesting that the current guidance may serve as a base for future growth [42][43] Question: How is the company approaching consumer-centric innovation? - Management emphasized the need to invest in underperforming brands and ensure they are set up for success [49][51] Question: What is the outlook for category demand and potential improvements? - Management believes that brands with strong propositions will continue to perform well, even in challenging times, and expects improvements in demand as the economy stabilizes [60][61] Question: How does the company plan to manage leverage and portfolio optimization? - Management is focused on tightening the balance sheet and improving operational efficiency while considering portfolio evaluations for long-term value [82][86]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 3.4%, with organic net sales declining by 10.8% [19][20] - Adjusted EPS was reported at $1.71, reflecting challenges in pricing realization and increased costs [23] - Consolidated gross profit margin decreased by 200 basis points to 46.9% due to higher tariffs and inventory obsolescence [21] - SG&A ratio increased by 160 basis points, primarily due to the acquisition of Olive & June and higher freight costs [22] Business Segment Performance Changes - Home and outdoor segment net sales declined by 6.7%, impacted by lower online sales and softness in insulated beverageware [20] - Beauty and wellness segment net sales decreased by 0.5%, with organic sales down 13.9% due to competitive pressures and lower consumer demand [20][21] - Olive & June outperformed expectations with nearly $38 million in sales, contributing positively to the beauty and wellness segment [12][21] Market Data and Key Metrics Changes - International sales fell by 8.1%, reflecting challenges in the China market and tariff-related disruptions [12] - Organic D to C revenue increased by 21%, indicating a shift towards direct consumer engagement [13] Company Strategy and Development Direction - The company is focused on re-energizing brands, improving operational efficiency, and investing in innovation to drive growth [5][8] - Strategic priorities include enhancing consumer engagement, sharpening execution, and maximizing operational efficiency [9][10] - The company plans to maintain a disciplined approach to resource allocation, focusing on high-potential opportunities [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted a bifurcated economy, with high-income households spending robustly while lower-income consumers are cautious [5] - The company expects continued margin pressure due to consumer trade-down behavior and a more promotional environment [26] - Future growth is anticipated to be driven by product innovation and improved brand positioning [6][8] Other Important Information - The company is navigating tariff impacts, with an expected full-year impact of $50-$55 million on gross profit [19] - Inventory is projected to be between $475 million and $490 million at year-end, including estimated tariff-related costs [25] Q&A Session Summary Question: What is the status of declining categories and turnaround efforts? - Management is encouraged by growth in brands like Osprey and Olive & June, while acknowledging the need for improvement in underperforming categories [29][30] Question: Is this year's earnings guidance the bottom for earnings power? - Management emphasized a shift towards revenue growth and innovation investment, indicating a focus on long-term growth rather than immediate cost-cutting [32][33] Question: How is consumer-centric innovation being prioritized? - Management acknowledged past underinvestment in certain brands and is now focusing on innovation and consumer engagement to drive growth [38][40] Question: What are the major upcoming product releases? - While specific future innovations cannot be disclosed, brands like Osprey and Olive & June are expected to continue performing well with new product launches [41][42] Question: What is the outlook for operating margins? - Management believes that returning to revenue growth will facilitate margin expansion, but specific margin targets were not provided [85]

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Q3 Fiscal 2026 Results - Net sales revenue decreased by 34% from $5307 million in Q3 FY25 to $5128 million in Q3 FY26[16] - Organic net sales decreased by 108% with 33% or $173 million of the decline due to tariff-related revenue disruptions[17] - Gross margin decreased by 200 basis points from 489% in Q3 FY25 to 469% in Q3 FY26 primarily due to higher tariffs and less favorable inventory obsolescence[16, 17] - Adjusted EBITDA margin decreased by 350 basis points from 182% in Q3 FY25 to 147% in Q3 FY26 primarily due to lower gross profit margin and a higher SG&A rate[16, 17] - Adjusted diluted EPS decreased from $267 in Q3 FY25 to $171 in Q3 FY26 primarily due to lower adjusted operating income and higher interest expense[16, 17] - Free cash flow decreased from $561 million YTD FY25 to $288 million YTD FY26[16] Tariff Mitigation and Outlook - The company expects to reduce the remaining unmitigated tariff impact to less than $30 million in Fiscal 2026[30] - The company is implementing a dual sourcing strategy to lessen exposure to China manufacturing with a goal of 40% dual sourcing by the end of FY26 and 60% by the end of FY27[30, 33] - The company anticipates consolidated net sales of $1758 to $1773 billion for the full year Fiscal 2026[36] - The company projects adjusted diluted EPS of $325 to $375 for the full year Fiscal 2026[36]

Financial Performance - Management reduced forecasts for net sales revenue, gross margin, and earnings before interest and taxes due to tariff policies and macroeconomic conditions, impacting consumer spending and retailer orders [36]. - For the three months ended November 30, 2025, total sales revenue was $512.8 million, a decrease of 3.4% from $530.7 million in the same period of 2024 [92]. - For the nine months ended November 30, 2025, total sales revenue was $1.316 billion, down 7.4% from $1.422 billion in the same period of 2024 [92]. - The company incurred an operating loss of $731.1 million for the nine months ended November 30, 2025, compared to an operating income of $140.7 million in the same period of 2024 [92]. - Consolidated operating loss was $8.4 million for the three months ended November 30, 2025, compared to operating income of $75.1 million for the same period last year, with an operating margin decrease to (1.6)% from 14.2% [150]. - Net loss was $84.1 million for the three months ended November 30, 2025, compared to net income of $49.6 million for the same period last year, resulting in a diluted loss per share of $3.65 [150]. - For the first nine months of fiscal 2026, net loss was $843.4 million, compared to net income of $72.8 million, leading to a diluted loss per share of $36.70 versus diluted earnings per share of $3.15 [215]. Asset Impairment - Goodwill impairment charges for the Home & Outdoor segment totaled $648.6 million for the nine months ended November 30, 2025, with significant charges from Hydro Flask and Osprey reporting units [37]. - The Beauty & Wellness segment recorded goodwill impairment charges of $207.3 million for Health & Wellness, Drybar, Curlsmith, and Revlon businesses for the nine months ended November 30, 2025 [38]. - Impairment charges during the nine months ended November 30, 2025, totaled $648.6 million for goodwill, $97.0 million for indefinite-lived intangible assets, and $61.1 million for definite-lived intangible assets [77]. - The company recognized pre-tax asset impairment charges of $65.9 million for the three months ended November 30, 2025, and $806.7 million for the nine months ended November 30, 2025 [233]. Stock and Shareholder Actions - The company authorized a repurchase of up to $500 million of common stock, with $498.2 million remaining available for purchase as of November 30, 2025 [47]. - The company repurchased 1,011,243 shares of common stock for an aggregate value of $100.019 million at an average price of $98.91 per share during the nine months ended November 30, 2024 [49]. - The company recorded share-based compensation expense of $14.7 million for the nine months ended November 30, 2025, net of income tax benefits [45]. Debt and Financing - As of November 30, 2025, total long-term debt was $892.393 million, with a weighted average interest rate of 5.8% [57]. - The company entered into a credit agreement providing for aggregate commitments of $1.5 billion, including a $1.0 billion revolving credit facility and a $250 million term loan facility [58]. - The outstanding principal balance under the Credit Agreement was $897.5 million as of November 30, 2025, with $625 million hedged using interest rate swaps [83]. - The company was in compliance with all covenants under the terms of the amended credit agreement as of November 30, 2025 [66]. Segment Performance - The company operates through two reportable segments: Home & Outdoor and Beauty & Wellness, with performance assessed using segment operating income [90]. - The Home & Outdoor segment reported sales revenue of $229.6 million, down 6.7% from $246.1 million year-over-year [92]. - The Beauty & Wellness segment generated sales revenue of $283.2 million, a slight decrease from $284.6 million in the prior year [92]. - Organic business revenue declined by $57.1 million, or 10.8%, for the three months ended November 30, 2025, primarily due to lower sales in Beauty & Wellness and Home & Outdoor segments [154]. Tax and Regulatory Matters - The company expects an increase in its effective tax rate for fiscal 2026 due to global tax reform initiatives, including the implementation of Pillar Two [103]. - Income tax expense for the three months ended November 30, 2025, was $60.0 million on a pre-tax loss of $24.0 million, compared to $13.5 million on pre-tax income of $63.2 million for the same period last year [108]. - For the nine months ended November 30, 2025, income tax expense was $69.2 million on a pre-tax loss of $774.2 million, compared to $30.4 million on pre-tax income of $103.3 million for the same period last year [109]. Operational Challenges - The company experienced reduced replenishment orders from retail customers due to softer consumer demand, adversely impacting sales and cash flows during fiscal 2025 [129]. - The company expects continued uncertainty in its business due to inflation, tariffs, and consumer confidence, which may adversely impact results [127]. - The cough/cold/flu season for 2024-2025 was below historical averages, which may affect sales in the Beauty & Wellness segment [144]. Acquisitions and Growth Strategies - The company completed the acquisition of Olive & June for an initial cash consideration of $224.7 million, which is expected to enhance its Beauty portfolio and drive greater earnings growth [117]. - The Olive & June acquisition contributed $37.7 million, or 7.1%, to consolidated net sales revenue growth for the three months ended November 30, 2025 [155]. - The Olive & June acquisition contributed $97.9 million, or 13.3%, to segment net sales revenue growth for the first nine months of Fiscal 2026 [164]. Restructuring Initiatives - Project Pegasus, a global restructuring plan, was completed in Q4 of fiscal 2025, with expected savings to be realized through fiscal 2027, incurring restructuring charges of $3.5 million and $6.9 million for the three and nine months ended November 30, 2024, respectively [50][51]. - The company incurred cash restructuring payments of $5.7 million and $9.8 million for the nine months ended November 30, 2025, and 2024, respectively [51]. - The company has a remaining liability of $7.7 million related to restructuring charges as of February 28, 2025, from Project Pegasus [134].

Exhibit 99.1 Helen of Troy Limited Reports Third Quarter Fiscal 2026 Results Consolidated Net Sales Decline of 3.4% GAAP Diluted Loss Per Share of $3.65 Adjusted Diluted EPS of $1.71 (1) Updates Fiscal 2026 Outlook: Consolidated Net Sales of $1.758-$1.773 Billion GAAP Diluted Loss Per Share of $36.07-$35.57 Adjusted Diluted EPS of $3.25-$3.75 El Paso, Texas, January 8, 2026 — Helen of Troy Limited (NASDAQ: HELE), designer, developer, and worldwide marketer of branded consumer home, outdoor, beauty, and well ...

Core Insights - Helen of Troy Limited reported consolidated net sales revenue of $512.8 million for the three-month period ended November 30, 2025, a decrease from $530.7 million in Fiscal 2025 [1] - The gross profit margin for the company was 46.9%, down from 48.9% in the previous fiscal year [1] - The operating margin was reported at (1.6)%, which includes pre-operating expenses [1]

Helen of Troy Limited (NASDAQ:HELE) will release earnings results for its third quarter before the opening bell on Thursday, Jan. 8, 2025.Analysts expect the El Paso, Texas-based company to report quarterly earnings at $1.68 per share, down from $2.67 per share in the year-ago period. The consensus estimate for Helen of Troy's quarterly revenue is $502.17 million, up from $530.71 million a year earlier, according to data from Benzinga Pro.On Nov. 25, Helen of Troy announced amendment to existing credit agre ...

Helen of Troy Limited (NASDAQ:HELE) will release earnings results for its third quarter before the opening bell on Thursday, Jan. 8, 2025.Analysts expect the El Paso, Texas-based company to report quarterly earnings at $1.68 per share, down from $2.67 per share in the year-ago period. The consensus estimate for Helen of Troy's quarterly revenue is $502.17 million, up from $530.71 million a year earlier, according to data from Benzinga Pro.On Nov. 25, Helen of Troy announced amendment to existing credit agre ...