Core Insights - Helen Of Troy Limited reported a significant 51% decline in second-quarter adjusted earnings per share, attributed to ongoing cost pressures and tariff-related disruptions expected to impact results for the remainder of fiscal 2026 [1][2] - The company’s quarterly sales decreased by 8.9% year-over-year to $431.8 million, surpassing analyst expectations of $418.8 million [1] - The company anticipates third-quarter adjusted EPS between $1.55 and $1.80, which is below the analyst estimate of $1.98 [2] Financial Performance - Adjusted earnings per share fell 51.2% year-over-year to 59 cents, exceeding the consensus estimate of 53 cents [1] - For fiscal year 2026, the company projects adjusted EPS of $3.75 to $4.25, compared to the street view of $4.58, and sales of $1.739 billion to $1.780 billion against a consensus of $1.750 billion [2] Analyst Reactions - Canaccord Genuity analyst Susan Anderson maintained a Hold rating on Helen Of Troy and reduced the price target from $26 to $23 [4] - UBS analyst Peter Grom also maintained a Neutral rating, lowering the price target from $27 to $25 [4]

Core Viewpoint - Helen of Troy Limited's shares experienced a significant decline of over 21% intra-day despite reporting fiscal second-quarter 2026 results that surpassed analyst expectations for both earnings and revenue [1] Financial Performance - The company reported adjusted earnings per share (EPS) of $0.59, exceeding estimates of $0.53, while revenue reached $431.8 million, surpassing expectations of $416.78 million [2] - However, both adjusted EPS and revenue showed substantial declines from the previous year, with adjusted EPS down 51.2% from $1.21 and revenue down 8.9% from $474.2 million [2] GAAP Loss and Impairment Charges - Helen of Troy reported a GAAP loss of $13.44 per share, primarily due to non-cash impairment charges totaling $326.4 million ($294.0 million after tax), which included $292.6 million in goodwill reductions and $33.8 million in intangible asset write-downs [3] - The gross margin contracted to 44.2% from 45.6% a year earlier, mainly due to higher tariffs that reduced consolidated margins by approximately 200 basis points [3] Future Outlook - For fiscal 2026, the company revised its adjusted EPS forecast to $3.75–$4.25, which is below analyst expectations of $4.58, while maintaining its revenue outlook of $1.74–$1.78 billion, aligning with consensus estimates of $1.75 billion [4]

Core Insights - Helen of Troy Limited (HELE) reported a significant earnings per share (EPS) shortfall, with a reported EPS of -$13.44 against an estimated EPS of $0.54, indicating ongoing financial challenges [2][6] - The company's actual revenue was approximately $431.78 million, falling short of the estimated $504.98 million, reflecting a decline in consolidated net sales revenue from $474.2 million in the same period of the previous fiscal year [3][6] - Profitability metrics show a decrease in gross profit margin to 44.2% from 45.6%, and a negative operating margin of -73.1%, highlighting reduced profitability [4][6] Financial Ratios - The price-to-earnings (P/E) ratio is approximately -0.75, indicating that the company has been experiencing losses over the trailing twelve months [2][6] - The price-to-sales ratio is about 0.27, suggesting that investors are paying $0.27 for every dollar of sales, reflecting market caution [3] - The enterprise value to sales ratio is approximately 0.29, and the enterprise value to operating cash flow ratio is around 5.83, indicating reasonable cash flow generation relative to enterprise value [5] Liquidity and Debt - The company maintains a low debt-to-equity ratio of about 0.07, indicating a low level of debt relative to equity [4] - A current ratio of approximately 1.71 suggests good liquidity to cover short-term liabilities [4]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 8.9%, with organic net sales declining by 16% when excluding Olive & June [39] - Non-GAAP adjusted EPS was $0.59, down from $1.21 in the same period last year, primarily due to lower adjusted operating income and higher interest expense [48] - Free cash flow was positively impacted by $23 million year-to-date, despite a cash flow drag of approximately $34 million from higher tariff payments [20] Business Line Data and Key Metrics Changes - Beauty and Wellness segment saw an organic sales decline of 18.2%, with approximately 5 percentage points attributed to tariff-related disruptions [43] - Home and Outdoor segment net sales declined by 13.7%, with about 4 percentage points of this decline due to tariff-related disruptions [41] - Olive & June contributed $33.4 million in revenue, exceeding expectations and helping to offset declines in other areas [30][44] Market Data and Key Metrics Changes - DTC revenue grew by 15% year-over-year, indicating strong consumer engagement despite broader market challenges [20] - International sales in the Beauty and Wellness segment were affected by government incentives favoring localized fulfillment in China, impacting global brands like Braun [29] Company Strategy and Development Direction - The company aims to re-energize its brands and focus investments on those with the most promise, emphasizing consumer-centric strategies [13][14] - Plans include improving asset efficiency, maintaining shareholder-friendly policies, and enhancing working capital efficiency [16][17] - The company is committed to reducing organizational complexity and empowering teams to make quicker decisions [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges due to tariffs and changing consumer behaviors but remains optimistic about the potential for recovery and growth [18][40] - The focus will be on balancing short-term adjustments with long-term investments in innovation and growth [28][50] - Management expects a gradual improvement in financial performance as transitory impacts from tariffs dissipate [70][71] Other Important Information - The company is actively working on tariff mitigation strategies, including supplier diversification and cost management [25][38] - The effective tax rate is expected to range from 15% to 16% for the full fiscal year, with adjustments in Q3 and Q4 [55] Q&A Session Summary Question: Portfolio evaluation and divestiture opportunities - Management sees promise in all brands but is evaluating the portfolio for long-term planning [67] Question: Earnings base for future growth - Management believes there are transitory impacts affecting current earnings, which should improve in the second half of the year [70][71] Question: Revitalizing brands and restoring growth - Key steps include focusing on consumer insights, driving innovation, and improving decision-making processes [79] Question: Optimal leverage and capital structure - Management aims for leverage closer to two times and is in discussions with lenders for potential flexibility [83] Question: Growth opportunities in categories - Management is exploring growth opportunities across existing and potential new categories [88]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 8.9%, with organic net sales declining by 16% when excluding Olive & June [39] - Non-GAAP adjusted EPS was $0.59 compared to $1.21 in the same period last year, reflecting lower adjusted operating income and higher interest expense [48] - Free cash flow was positive at $23 million year-to-date despite a cash flow drag of approximately $34 million from higher tariff payments [20] Business Line Data and Key Metrics Changes - Beauty and Wellness segment saw an organic sales decline of 18.2%, with approximately five percentage points attributed to tariff-related disruptions [43] - Home and Outdoor segment net sales declined by 13.7%, with about 4 percentage points of this decline due to tariff-related disruptions [41] - Olive & June contributed $33.4 million in revenue, exceeding expectations and helping to offset declines in other areas [30][44] Market Data and Key Metrics Changes - DTC revenue grew by 15% year-over-year, indicating strong consumer engagement despite broader market challenges [20] - International sales in the Beauty and Wellness segment were impacted by government incentives favoring localized fulfillment in China, affecting global brands like Braun [29] Company Strategy and Development Direction - The company aims to re-energize its brands and focus investments on those with the most promise, emphasizing consumer-centric strategies [13][14] - Plans to improve asset efficiency and maintain shareholder-friendly policies, including reducing debt and considering future acquisitions [17] - The leadership intends to simplify operations and enhance decision-making speed to foster innovation and responsiveness to market needs [12][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges from tariffs and consumer caution but expresses optimism about the potential for recovery and growth [17][40] - The company is focused on balancing short-term adjustments with long-term investments in innovation and growth [28] - Management expects a gradual improvement in financial performance as transitory impacts from tariffs and market conditions dissipate [69][70] Other Important Information - The company reported a GAAP operating loss of $315.7 million, primarily due to non-cash asset impairment charges [45] - The effective tax rate decreased to 6.4% due to the tax effect of impairment charges and increased tax benefits for discrete items [48] Q&A Session Summary Question: Portfolio evaluation and divestiture opportunities - The CEO expressed excitement about the portfolio and noted that all brands have promise, but evaluations for potential divestitures are ongoing [61][66] Question: Earnings base for future growth - Management indicated that current earnings are impacted by transitory factors, and they expect improvements in the second half of the year to serve as a foundation for future growth [68][70] Question: Revitalizing brands and restoring growth - The CEO emphasized the importance of consumer insights, innovation, and improving decision-making processes to revitalize brands and drive growth [77][78] Question: Optimal leverage and capital structure - Management aims for leverage closer to two times and is in discussions with lenders to ensure flexibility in the capital structure [82] Question: Growth opportunities in categories - The CEO acknowledged potential growth opportunities in both existing and new categories, emphasizing a consumer-centric approach [87]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 8.9%, with organic net sales declining by 16% when excluding Olive & June [44] - Non-GAAP adjusted EPS was $0.59, down from $1.21 in the same period last year, primarily due to lower adjusted operating income and higher interest expense [53] - Consolidated gross profit margin decreased by 140 basis points to 44.2%, impacted by higher tariffs and increased retail trade expenses [49] Business Line Data and Key Metrics Changes - Beauty and Wellness segment saw organic sales decline of 18.2%, with approximately 5 percentage points attributed to tariff-related disruptions [48] - Home and Outdoor segment net sales declined by 13.7%, with about 4 percentage points of this decline due to tariff-related disruptions [46] - Olive & June contributed $33.4 million in revenue, exceeding expectations and helping to offset some declines in other segments [49][48] Market Data and Key Metrics Changes - DTC revenue grew by 15% year over year, indicating strong consumer engagement despite broader market challenges [24] - International sales in the Beauty and Wellness segment were affected by government incentives favoring localized fulfillment in China, impacting global brands like Braun [32] Company Strategy and Development Direction - The company aims to re-energize its brands and focus investments on those with the most promise, emphasizing consumer-centric strategies [18] - Plans include improving asset efficiency, maintaining shareholder-friendly policies, and investing in core business areas while reducing debt [21] - The leadership is focused on simplifying operations and enhancing decision-making speed to drive innovation and market responsiveness [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges from tariffs and consumer behavior shifts but remains optimistic about long-term growth potential [21][39] - The company is committed to balancing short-term adjustments with long-term investments in innovation and growth [31] - Management expects a gradual improvement in financial performance as transitory impacts from tariffs and market conditions dissipate [78] Other Important Information - The company is actively working on tariff mitigation strategies, including supplier diversification and cost management measures [28] - The leadership transition is seen as a positive step, with new CEO Scott Azzell bringing a competitive and consumer-focused approach [13][14] Q&A Session Summary Question: How does the company view its portfolio and potential divestitures? - The new CEO sees promise in all brands but is evaluating the portfolio for long-term planning [75] Question: What are the expectations for future earnings growth? - Management believes there are transitory impacts affecting fiscal 2026 that will not persist into fiscal 2027, providing a foundation for future growth [78] Question: What steps are needed to revitalize brands that are not growing? - Key steps include focusing on consumer insights, driving innovation, and improving decision-making processes [86] Question: What is the optimal leverage and capital structure for the business? - The company aims for leverage closer to two times and is in discussions with lenders for potential flexibility [90]

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分组1 - Helen of Troy (HELE) reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, but down from $1.21 per share a year ago, indicating an earnings surprise of +9.26% [1] - The company posted revenues of $431.78 million for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 3.09%, but down from $474.22 million year-over-year [2] - Over the last four quarters, Helen of Troy has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed significantly, losing about 53.9% since the beginning of the year compared to the S&P 500's gain of 14.8% [3] - The current consensus EPS estimate for the coming quarter is $2.03 on revenues of $492.27 million, and for the current fiscal year, it is $4.62 on revenues of $1.73 billion [7] - The Zacks Industry Rank indicates that the Cosmetics industry is currently in the bottom 11% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Q2 Fiscal 2026 Results - Net sales decreased by 8.9% to $431.8 million compared to $474.2 million in Q2 FY25 [18, 19] - Organic net sales decreased by 16.0%, with approximately 30% decline driven by tariff-related trade disruptions [19] - Adjusted diluted EPS declined 51.2% to $0.59 compared to $1.21 in Q2 FY25 [18, 19] - Adjusted EBITDA margin decreased by 340 basis points to 8.4% compared to 11.8% in Q2 FY25 [18, 19] - Gross margin decreased by 140 basis points to 44.2% compared to 45.6% in Q2 FY25 [18, 19] Tariff-Related Impacts and Mitigation - Approximately 53% of the consolidated net sales decline was tariff-related [30] - The company expects the unmitigated tariff impact to be less than $20 million in Fiscal Year 2026 [35] - The company is implementing a supplier diversification plan to reduce ongoing exposure to China tariffs, aiming for approximately 25% to 30% of consolidated Cost of Goods Sold (COGS) by the end of Fiscal Year 2026 [37] FY26 Outlook - The company expects net sales to be in the range of $1.739 billion to $1.780 billion, a decline of 8.8% to 6.7% [41] - Adjusted diluted EPS is expected to be in the range of $3.75 to $4.25, a decline of 47.7% to 40.7% [41] - The company anticipates interest expense in the range of $56 million to $57 million and a non-GAAP adjusted effective tax rate range of 15% to 16% [43]

Summary of Key Points Core Viewpoint - U.S. stock futures are slightly lower, with Nasdaq futures down approximately 0.1% on Thursday, indicating a cautious market sentiment [1]. Company-Specific Summaries Helen of Troy Ltd (NASDAQ:HELE) - Helen of Troy reported quarterly earnings of 59 cents per share, surpassing the analyst consensus estimate of 53 cents per share [1]. - The company achieved quarterly sales of $431.781 million, exceeding the analyst consensus estimate of $418.806 million [1]. - For FY2026, Helen of Troy projects adjusted EPS between $3.75 and $4.25, which is below market estimates of $4.58 [1]. - The company anticipates sales in the range of $1.739 billion to $1.780 billion, compared to market estimates of $1.750 billion [1]. - Shares of Helen of Troy fell 16.7% to $23.00 in pre-market trading following the earnings report [2]. Ferrari NV (NYSE:RACE) - Ferrari's shares decreased by 12.4% to $420.00 in pre-market trading after the release of its comprehensive 2030 strategic plan and updated near-term financial guidance [4]. Apogee Therapeutics, Inc. (NASDAQ:APGE) - Apogee Therapeutics' stock tumbled 9.6% to $42.70 in pre-market trading after announcing a $300 million underwritten public offering [4]. AZZ Inc (NYSE:AZZ) - AZZ Inc's shares declined by 9.4% to $96.01 in pre-market trading following weak second-quarter results [4]. Plug Power Inc. (NASDAQ:PLUG) - Plug Power's stock fell 7.8% to $3.37 in pre-market trading after a decline of more than 5% on Wednesday, despite raising $370 million from the immediate exercise of 185.4 million warrants at $2 per share [4]. Other Notable Stocks - Inventiva (NYSE:IVA) shares fell 6.3% to $5.02 in pre-market trading [4]. - NextNRG Inc (NASDAQ:NXXT) saw a decline of 5.8% to $2.59 in pre-market trading [4].