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Business Wire
10-07-2025
- Business
- Business Wire
Helen of Troy Limited Reports First 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 May 31, 2025. Executive Summary - First Quarter of Fiscal 2026 Compared to Fiscal 2025 Consolidated net sales revenue of $371.7 million compared to $416.8 million Gross profit margin of 47.1% compared to 48.7% Operating margin of (109.5)%, which includes non-cash asset impairment charges (6) of $414.4 million, compared to 7.4% Non-GAAP adjusted operating margin of 4.3% compared to 10.3% GAAP diluted loss per share of $19.65 compared to diluted earnings per share of $0.26 Non-GAAP adjusted diluted earnings per share of $0.41 compared to $0.99 Net cash provided by operating activities of $58.3 million compared to $25.3 million Non-GAAP adjusted EBITDA margin of 6.9% compared to 12.6% Mr. Timothy F. Meeker, Chairman of the Board of Directors, stated: 'The Board's process to identify our next CEO is well underway with the support of a leading global executive search firm and we are encouraged by the progress thus far. We continue to prioritize selecting a CEO who has demonstrated success in leading a highly diversified global organization, has the ability to bolster our brands and inspire top talent to capitalize on Helen of Troy's growth opportunities, and who closely aligns with our strong belief that Helen of Troy has tremendous potential. As we continue our search, we have confidence in our interim CEO Brian Grass, his dedication to Helen of Troy, and his commitment to improving our Company's performance.' Mr. Brian L. Grass, interim Chief Executive Officer, stated: 'I feel fortunate to have stepped into my role as interim CEO with a strong understanding of our business, our opportunities, and the headwinds we face. I have spent considerable time listening closely to our stakeholders, especially our associates who care deeply about our brands, our purpose, and each other. It is clear that we have to get back to fundamentals and move with greater speed. We are focused on improving our go-to-market effectiveness, simplifying how we operate, refocusing on innovation for more product-driven growth, sharpening our spend, and reinvigorating our culture with resilience and an owner's mindset.' Mr. Grass continued: 'The first quarter was challenging, with tariff-related impacts making up approximately 8 percentage points of the 10.8% consolidated revenue decline. That said, we are encouraged by underlying business improvements we saw in the quarter including U.S. point-of-sale unit growth in 8 out of our 11 key brands, growth in our DTC business, Osprey, and Curlsmith, and contribution from Olive & June ahead of our expectations. I am also pleased with the progress we are making to mitigate the impact of tariffs, and we now believe we can reduce our fiscal 2026 net tariff impact on operating income to less than $15 million based on tariffs currently in place. I want to thank our entire organization for their dedication and commitment to Helen of Troy's success. I remain optimistic about our future as we create a stronger, healthier, and more agile company.' Three Months Ended May 31, (in thousands) (unaudited) Home & Outdoor Beauty & Wellness Total Fiscal 2025 sales revenue, net $ 198,459 $ 218,388 $ 416,847 Organic business (4) (20,657 ) (50,335 ) (70,992 ) Impact of foreign currency 181 (1,221 ) (1,040 ) Acquisition (5) — 26,840 26,840 Change in sales revenue, net (20,476 ) (24,716 ) (45,192 ) Fiscal 2026 sales revenue, net $ 177,983 $ 193,672 $ 371,655 Total net sales revenue growth (decline) (10.3 )% (11.3 )% (10.8 )% Organic business (10.4 )% (23.0 )% (17.0 )% Impact of foreign currency 0.1 % (0.6 )% (0.2 )% Acquisition — % 12.3 % 6.4 % Operating margin (GAAP) Fiscal 2026 (120.1 )% (99.8 )% (109.5 )% Fiscal 2025 8.0 % 6.8 % 7.4 % Adjusted operating margin (non-GAAP) (1) Fiscal 2026 5.0 % 3.7 % 4.3 % Fiscal 2025 10.6 % 10.0 % 10.3 % Expand Consolidated Results - First Quarter Fiscal 2026 Compared to First Quarter Fiscal 2025 Consolidated net sales revenue decreased $45.2 million, or 10.8%, to $371.7 million, compared to $416.8 million, driven by a decrease from Organic business of $71.0 million, or 17.0%. The Organic business decrease was due to a decline in Beauty & Wellness primarily driven by lower sales of thermometers, fans, and hair appliances and a decline in Home & Outdoor primarily resulting from a decrease in home and insulated beverageware sales. The Organic business decline was partially offset by the contribution from the acquisition of Olive & June, LLC ('Olive & June') of $26.8 million, or 6.4%, to consolidated net sales revenue and strong domestic demand for technical packs in Home & Outdoor. Consolidated gross profit margin decreased 160 basis points to 47.1%, compared to 48.7%. The decrease in consolidated gross profit margin was primarily due to the comparative impact of favorable inventory obsolescence expense in the prior year, consumer trade-down behavior, higher retail trade expense and a less favorable brand mix within Home & Outdoor. These factors were partially offset by the favorable impact of the acquisition of Olive & June within Beauty & Wellness and lower commodity and product costs, partly driven by Project Pegasus initiatives. Consolidated selling, general and administrative expense ('SG&A') ratio increased 420 basis points to 45.1%, compared to 40.9%. The increase in the consolidated SG&A ratio was primarily due to higher marketing expense, higher outbound freight costs, CEO succession costs (8) of $3.5 million, the impact of the Olive & June acquisition and the impact of unfavorable operating leverage due to the decrease in net sales. The Company recognized non-cash asset impairment charges of $414.4 million ($436.2 million after tax), during the first quarter of fiscal 2026, to reduce goodwill by $317.0 million and other intangible assets by $97.4 million, which impacted both the Beauty & Wellness and Home & Outdoor segments. Consolidated operating loss was $407.0 million, or (109.5)% of net sales revenue, compared to consolidated operating income of $30.8 million, or 7.4% of net sales revenue. The decrease in consolidated operating margin was primarily due to non-cash asset impairment charges of $414.4 million, an increase in the aforementioned consolidated SG&A ratio and a decrease in consolidated gross profit margin. Interest expense was $13.8 million, compared to $12.5 million. The increase in interest expense was primarily due to higher average borrowings outstanding to fund the acquisition of Olive & June, increased inventory due to forward buys in advance of tariffs, and borrowings to fund higher tariff costs, partially offset by a lower average effective interest rate compared to the same period last year. Income tax expense was $30.2 million compared to $12.1 million, primarily due to the timing of the accounting for the tax impact of the impairment charge in the quarter and a related valuation allowance on intangible asset deferred tax assets, partially offset by a decrease in tax expense for discrete items. Net loss was $450.7 million, compared to net income of $6.2 million. Diluted loss per share was $19.65, compared to diluted earnings per share of $0.26. The decrease is primarily due to the recognition of an after-tax asset impairment charge of $436.2 million during the first quarter of fiscal 2026 and lower operating income exclusive of the asset impairment charges. Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $25.5 million, compared to $52.4 million. Non-GAAP adjusted EBITDA margin was 6.9% compared to 12.6%. On an adjusted basis (non-GAAP) for the first quarters of fiscal 2026 and 2025, excluding asset impairment charges (6), the discrete impact of Barbados tax reform (7), CEO succession costs (8), intangible asset reorganization (9), restructuring charges, amortization of intangible assets, and non-cash share-based compensation, as applicable: Adjusted operating income decreased $26.8 million, or 62.5%, to $16.1 million, or 4.3% of net sales revenue, compared to $43.0 million, or 10.3% of net sales revenue. The decrease in adjusted operating margin was primarily driven by the comparative impact of favorable inventory obsolescence expense in the prior year, higher marketing expense, consumer trade-down behavior, higher outbound freight costs, higher retail trade expense, a less favorable brand mix within Home & Outdoor and the impact of unfavorable operating leverage. These factors were partially offset by the favorable impact of the acquisition of Olive & June within Beauty & Wellness and lower commodity and product costs, partly driven by Project Pegasus initiatives. Adjusted income decreased $13.9 million, or 59.4%, to $9.5 million, compared to $23.3 million. Adjusted diluted earnings per share decreased 58.6% to $0.41, compared to $0.99. The decrease in adjusted diluted earnings per share was primarily due to lower adjusted operating income and higher interest expense, partially offset by a decrease in adjusted income tax expense. Segment Results - First Quarter Fiscal 2026 Compared to First Quarter Fiscal 2025 Home & Outdoor net sales revenue decreased $20.5 million, or 10.3%, to $178.0 million, compared to $198.5 million. The decrease was primarily driven by: softer consumer demand in the home and insulated beverageware categories resulting in lower replenishment orders; cancellation of direct import orders in response to higher tariffs; retailer pull-forward activity in the fourth quarter of fiscal 2025 due to tariff uncertainty and potential supply disruption resulting in higher retail inventory and lower replenishment; lower closeout channel sales; and a net decrease in distribution year-over-year. These factors were partially offset by strong domestic demand for technical packs and the favorable comparative impact of shipping disruption at the Company's Tennessee distribution facility due to automation startup issues during the same period last year. Home & Outdoor operating loss was $213.8 million, or (120.1)% of segment net sales revenue, compared to operating income of $15.9 million, or 8.0% of segment net sales revenue. Operating loss in the first quarter of fiscal 2026 included $219.1 million of pre-tax asset impairment charges and $1.7 million of CEO succession costs. The remaining 400 basis point decrease in segment operating margin was primarily due to the comparative impact of favorable inventory obsolescence expense in the prior year, a less favorable brand mix, consumer trade-down behavior, higher outbound freight costs, higher marketing expense, higher retail trade expense, and the impact of unfavorable operating leverage. These factors were partially offset by lower commodity and product costs. Adjusted operating income decreased 57.9% to $8.9 million, or 5.0% of segment net sales revenue, compared to $21.1 million, or 10.6% of segment net sales revenue. Beauty & Wellness net sales revenue decreased $24.7 million, or 11.3%, to $193.7 million, compared to $218.4 million. The decrease was primarily driven by a decrease from Organic business of $50.3 million, or 23.0%, primarily due to: a decline in international thermometry due to evolving dynamics in the China market, including a shift away from cross-border ecommerce toward localized fulfillment models, heightened competition from domestic sellers benefiting from government subsidies and a weaker illness season in Asia; a decrease in fan sales primarily driven by reduced replenishment orders from retail customers due to a decline in consumer demand and the cancellation of direct import orders from China in response to higher tariffs; and a decline in sales of hair appliances and prestige hair care products primarily due to softer consumer demand, increased competition, and a net decrease in distribution year-over-year. These factors were partially offset by the favorable comparative impact of the shipping disruption from Curlsmith system integration challenges during the same period last year and higher sales of heaters. The Organic business decline was also partially offset by the contribution from the acquisition of Olive & June of $26.8 million, or 12.3%, to segment net sales revenue. Beauty & Wellness operating loss was $193.2 million, or (99.8)% of segment net sales revenue, compared to operating income of $14.9 million, or 6.8% of segment net sales revenue. Operating loss in the first quarter of fiscal 2026 included $195.3 million of pre-tax impairment charges and $1.7 million of CEO succession costs. The remaining 480 basis point decrease in segment operating margin was primarily due to higher marketing expense, the comparative impact of favorable inventory obsolescence expense in the prior year, consumer trade-down behavior, higher outbound freight costs, higher retail trade expense, and the impact of unfavorable operating leverage. These factors were partially offset by the favorable impact of the acquisition of Olive & June, favorable product liability expense and lower commodity and product costs. Adjusted operating income decreased 66.8% to $7.3 million, or 3.7% of segment net sales revenue, compared to $21.9 million, or 10.0% of segment net sales revenue. Balance Sheet and Cash Flow - First Quarter Fiscal 2026 Compared to First Quarter Fiscal 2025 Cash and cash equivalents totaled $22.7 million, compared to $16.1 million. Accounts receivable turnover (10) was 69.7 days, compared to 67.4 days. Inventory was $484.1 million, compared to $444.7 million. Total short- and long-term debt was $871.0 million, compared to $748.4 million. Net cash provided by operating activities for the first three months of the fiscal year was $58.3 million, compared to $25.3 million for the same period last year. Free cash flow (1)(2) for the first three months of the fiscal year was $45.0 million, compared to $16.2 million for the same period last year. Second Quarter Fiscal 2026 Outlook Due to evolving global tariff policies and the related business and macroeconomic uncertainty, the Company is only providing an outlook for the second quarter of fiscal 2026 at this time. 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. 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 now expects to reduce its cost of goods sold exposed to China tariffs to less than 25% by the end of fiscal 2026. The Company is also continuing to implement other mitigation actions, which include cost reductions from suppliers and price increases to customers on products subject to tariffs. 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. 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 has resumed targeted growth investments, the Company remains disciplined in its approach given continued tariff volatility. The current measures in place include the following: Suspension of projects and capital expenditures that are not critical or in support of supplier diversification or dual sourcing initiatives; Actions to reduce overall personnel costs and pause most project and travel expenses remain in place; A resumption of optimized marketing, promotional, and new product development investments focused on opportunities with the highest returns; A resumption of targeted inventory purchases from China in the short term, with a measured approach in expectation of softer consumer demand in the short to intermediate term; and Actions to optimize working capital and balance sheet productivity. 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 $15 million, based on tariffs currently in place. The Company expects consolidated net sales revenue in the range of $408 million to $432 million, which implies a decline of 14.0% to 8.9%, compared to the second quarter of fiscal 2025. The consolidated net sales outlook reflects the following expectations by segment: Home & Outdoor net sales decline of 16.5% to 11.5%, compared to the second quarter of fiscal 2025; and Beauty & Wellness net sales decline of 11.3% to 6.1%, compared to the second quarter of fiscal 2025, which includes an expected incremental net sales contribution of $26 million to $27 million from the Olive & June acquisition. 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 pause or cancellation of direct import orders in response to higher tariffs; ongoing impact from the shift from cross border ecommerce to localized distribution and sustained competitive pressure from government-subsidized domestic sellers in China; continued softer consumer demand and increased competition; ongoing consumer trade-down behavior as shoppers seek greater value and prioritize essential categories; and retailer inventory rebalancing in response to demand trends. The Company expects GAAP diluted earnings per share of $0.56 to $0.68 and non-GAAP adjusted diluted EPS in the range of $0.45 to $0.60, which implies an adjusted diluted EPS decline of 62.8% to 50.4%, compared to the second quarter of fiscal 2025. The Company's outlook also reflects: the impact of a more promotional environment, consumer trade-down behavior, and a less favorable mix; higher commodity and product costs driven by direct tariff-related costs offset by Project Pegasus initiatives; the comparative impact of unfavorable operating efficiencies related to automation startup of the Tennessee distribution facility in the prior year; and the impact of unfavorable operating leverage due to the decline in revenue. The Company continues to expect these factors to be partially offset by cost reduction measures implemented in the first quarter and continuing throughout the year. The Company's second quarter fiscal 2026 consolidated net sales and EPS outlook also reflects the following assumptions: June 2025 foreign currency exchange rates will remain constant; expected interest expense in the range of $13 million to $14 million; a reported GAAP effective tax rate range of (84.9)% to (287.3)% and an adjusted effective tax rate range of 28.9% to 30.9%; and an estimated weighted average diluted shares outstanding of 22.9 million. 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. 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, July 10, 2025. 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: A telephone replay of this call will be available at 1:00 p.m. Eastern Time on July 10, 2025, until 11:59 p.m. Eastern Time on July 24, 2025, and can be accessed by dialing (844) 512-2921 and entering replay pin number 13753990. 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 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 new 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. 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 May 31, 2025 Home & Outdoor Beauty & Wellness (5) Total Operating loss, as reported (GAAP) $ (213,793 ) (120.1 )% $ (193,245 ) (99.8 )% $ (407,038 ) (109.5 )% Asset impairment charges (6) 219,095 123.1 % 195,290 100.8 % 414,385 111.5 % CEO succession costs (8) 1,742 1.0 % 1,742 0.9 % 3,484 0.9 % Subtotal 7,044 4.0 % 3,787 2.0 % 10,831 2.9 % Amortization of intangible assets 1,782 1.0 % 3,207 1.7 % 4,989 1.3 % Non-cash share-based compensation 34 — % 262 0.1 % 296 0.1 % Adjusted operating income (non-GAAP) $ 8,860 5.0 % $ 7,256 3.7 % $ 16,116 4.3 % Expand Three Months Ended May 31, 2024 Home & Outdoor Beauty & Wellness Total Operating income, as reported (GAAP) $ 15,850 8.0 % $ 14,913 6.8 % $ 30,763 7.4 % Restructuring charges 440 0.2 % 1,395 0.6 % 1,835 0.4 % Subtotal 16,290 8.2 % 16,308 7.5 % 32,598 7.8 % Amortization of intangible assets 1,765 0.9 % 2,755 1.3 % 4,520 1.1 % Non-cash share-based compensation 3,013 1.5 % 2,820 1.3 % 5,833 1.4 % Adjusted operating income (non-GAAP) $ 21,068 10.6 % $ 21,883 10.0 % $ 42,951 10.3 % Expand 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 May 31, 2025 Home & Outdoor Beauty & Wellness (5) Total Operating loss, as reported (GAAP) $ (213,793 ) (120.1 )% $ (193,245 ) (99.8 )% $ (407,038 ) (109.5 )% Depreciation and amortization 6,559 3.7 % 7,525 3.9 % 14,084 3.8 % Non-operating income, net — — % 308 0.2 % 308 0.1 % EBITDA (non-GAAP) (207,234 ) (116.4 )% (185,412 ) (95.7 )% (392,646 ) (105.6 )% Add: Asset impairment charges 219,095 123.1 % 195,290 100.8 % 414,385 111.5 % CEO succession costs 1,742 1.0 % 1,742 0.9 % 3,484 0.9 % Non-cash share-based compensation 34 — % 262 0.1 % 296 0.1 % Adjusted EBITDA (non-GAAP) $ 13,637 7.7 % $ 11,882 6.1 % $ 25,519 6.9 % Expand Three Months Ended May 31, 2024 Home & Outdoor Beauty & Wellness Total Operating income, as reported (GAAP) $ 15,850 8.0 % $ 14,913 6.8 % $ 30,763 7.4 % Depreciation and amortization 6,647 3.3 % 7,189 3.3 % 13,836 3.3 % Non-operating income, net — — % 100 — % 100 — % EBITDA (non-GAAP) 22,497 11.3 % 22,202 10.2 % 44,699 10.7 % Add: Restructuring charges 440 0.2 % 1,395 0.6 % 1,835 0.4 % Non-cash share-based compensation 3,013 1.5 % 2,820 1.3 % 5,833 1.4 % Adjusted EBITDA (non-GAAP) $ 25,950 13.1 % $ 26,417 12.1 % $ 52,367 12.6 % Expand 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 May 31, 2025 2024 Net (loss) income, as reported (GAAP) $ (450,718 ) (121.3 )% $ 6,204 1.5 % Interest expense 13,808 3.7 % 12,543 3.0 % Income tax expense 30,180 8.1 % 12,116 2.9 % Depreciation and amortization 14,084 3.8 % 13,836 3.3 % EBITDA (non-GAAP) (392,646 ) (105.6 )% 44,699 10.7 % Add: Asset impairment charges 414,385 111.5 % — — % CEO succession costs 3,484 0.9 % — — % Restructuring charges — — % 1,835 0.4 % Non-cash share-based compensation 296 0.1 % 5,833 1.4 % Adjusted EBITDA (non-GAAP) $ 25,519 6.9 % $ 52,367 12.6 % Expand Quarterly Period Ended Twelve Months Ended May 31, 2025 August November February May Net income (loss), as reported (GAAP) $ 17,014 $ 49,616 $ 50,917 $ (450,718 ) $ (333,171 ) Interest expense 13,216 12,164 13,999 13,808 53,187 Income tax expense (benefit) 4,792 13,536 (62,531 ) 30,180 (14,023 ) Depreciation and amortization 13,792 13,222 14,198 14,084 55,296 EBITDA (non-GAAP) 48,814 88,538 16,583 (392,646 ) (238,711 ) Add: Acquisition-related expenses — — 3,035 — 3,035 Asset impairment charges — — 51,455 414,385 465,840 CEO succession costs — — — 3,484 3,484 Restructuring charges 1,526 3,518 7,943 — 12,987 Non-cash share-based compensation 5,487 4,730 5,326 296 15,839 Adjusted EBITDA (non-GAAP) $ 55,827 $ 96,786 $ 84,342 $ 25,519 $ 262,474 Expand Three Months Ended May 31, 2024 Income Diluted Earnings Per Share Before Tax Tax Net of Tax Before Tax Tax Net of Tax As reported (GAAP) $ 18,320 $ 12,116 $ 6,204 $ 0.78 $ 0.51 $ 0.26 Barbados tax reform (7) — (6,045 ) 6,045 — (0.26 ) 0.26 Restructuring charges 1,835 165 1,670 0.08 0.01 0.07 Subtotal 20,155 6,236 13,919 0.85 0.26 0.59 Amortization of intangible assets 4,520 661 3,859 0.19 0.03 0.16 Non-cash share-based compensation 5,833 264 5,569 0.25 0.01 0.24 Adjusted (non-GAAP) $ 30,508 $ 7,161 $ 23,347 $ 1.29 $ 0.30 $ 0.99 Expand Selected Consolidated Balance Sheet and Cash Flow Information (Unaudited) (in thousands) May 31, 2025 2024 Balance Sheet: Cash and cash equivalents $ 22,669 $ 16,148 Receivables, net 314,814 328,097 Inventory 484,127 444,749 Total assets, current 855,415 831,563 Total assets 2,651,963 2,820,951 Total liabilities, current 504,514 427,675 Total long-term liabilities 919,763 843,776 Total debt 871,013 748,377 Stockholders' equity 1,227,686 1,549,500 Expand Three Months Ended May 31, 2025 2024 Cash Flow: Depreciation and amortization $ 14,084 $ 13,836 Net cash provided by operating activities 58,338 25,320 Capital and intangible asset expenditures 13,362 9,142 Net debt (repayments) proceeds (45,044 ) 82,387 Payments for repurchases of common stock 1,331 103,035 Expand Reconciliation of Non-GAAP Financial Measures – Second Quarter Fiscal 2026 Outlook for GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share (Non-GAAP) and GAAP Effective Tax Rate to Adjusted Effective Tax Rate (Non-GAAP) (1) (13) (Unaudited) Diluted earnings per share, as reported (GAAP) $ 0.56 - $ 0.68 (287.3 )% - (84.9 )% Amortization of intangible assets 0.19 - 0.19 Non-cash share-based compensation 0.31 - 0.28 Income tax effect of adjustments (0.61 ) - (0.55 ) 318.2 % - 113.8 % Adjusted diluted earnings per share (non-GAAP) $ 0.45 - $ 0.60 30.9 % - 28.9 % Expand 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) Free cash flow represents net cash provided by operating activities less capital and intangible asset expenditures. (3) Net leverage ratio is calculated as (a) total borrowings under the Company's credit agreement plus outstanding letters of credit, 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). (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) The three months ended May 31, 2025 includes a full quarter of operating results from Olive & June, acquired on December 16, 2024. Olive & June sales are reported in Acquisition. (6) Non-cash asset impairment charges were recognized, during the first quarter of fiscal 2026, to reduce goodwill and other intangible assets, which impacted both the Beauty & Wellness and Home & Outdoor segments. (7) 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'). (8) Represents costs incurred in connection with the departure of the Company's former CEO primarily related to severance and recruitment costs ('CEO succession costs'). (9) Represents income tax expense from the recognition of a valuation allowance on a deferred tax asset related to the Company's intangible asset reorganization in fiscal 2025 ("intangible asset reorganization"). (10) 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. (11) Domestic net sales revenue includes net sales revenue from the U.S. and Canada. (12) See reconciliation of Adjusted EBITDA to the most directly comparable GAAP-based financial measure (net income) in the accompanying tables to this press release. (13) Adjusted diluted EPS second quarter outlook excludes the impact of amortization of intangible assets, non-cash share-based compensation, and the income tax effect of these adjustments, as well as the estimated second quarter income tax impact of the asset impairment charges recognized during the first quarter of fiscal 2026. Expand
Business Wire
23-06-2025
- Business
- Business Wire
Helen of Troy Limited Announces Earnings Release Date, Conference Call, and Webcast for First Quarter Fiscal Year 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 announced that the Company will release its first quarter fiscal year 2026 results before the stock market opens on Thursday, July 10, 2025. The Company will conduct a conference call to discuss its first quarter fiscal year 2026 results on the same day, Thursday, July 10, 2025, at 9:00 a.m. Eastern Time. The conference call will be hosted by Brian Grass, Chief Executive Officer, and Tracy Scheuerman, Chief Financial Officer. 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: A telephone replay of this call will be available at 1:00 p.m. Eastern Time on July 10, 2025, until 11:59 p.m. Eastern Time on July 24, 2025, and can be accessed by dialing (844) 512-2921 and entering replay pin number 13753990. A replay of the webcast will remain available on the website for one year. 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 Source: Helen of Troy Limited
Yahoo
09-06-2025
- Business
- Yahoo
Helen of Troy Limited (HELE): A Bull Case Theory
We came across a bullish thesis on Helen of Troy Limited (HELE) on Value Investing subreddit by Individual_Buy7254. In this article, we will summarize the bulls' thesis on HELE. Helen of Troy Limited (HELE)'s share was trading at $27.91 as of 4th June. HELE's trailing and forward P/E were 5.14 and 5.18 respectively according to Yahoo Finance. Iakov Filimonov/ Helen of Troy (HELE), owner of steady cash-generating consumer brands like OXO, Hydro Flask, Braun, and Osprey, is trading at just 3.5x adjusted P/E—an irrationally low valuation given the company's underlying fundamentals. Much of this dislocation stems from overblown tariff fears, misunderstood one-time charges like the non-cash Drybar impairment, and temporary headwinds such as lower-margin sales post-COVID. The company is addressing these issues through Project Pegasus, a multi-year cost-saving initiative expected to deliver $75–85 million annually by 2027, while also reducing its China exposure below 20% of COGS by 2026. Beauty and wellness brands are rebounding, with Olive & June growing 8.7% in Q4, and Drybar's restructuring now complete. At the same time, HELE's $7.17 FY25 EPS and modest leverage (net debt/EBITDA ~3x with 4x interest coverage) highlight its financial resilience. While the stock was overvalued during the COVID bull run, trading at nearly 30x earnings in December 2021 due to a temporary boost in household items, the nearly 90% decline since then has been largely due to multiple contractions, not a fundamental collapse. Revenue has declined slightly from $2.1B in 2021 to a projected $1.9B in FY2025, but book value has grown by about 40%, showing the business isn't burning cash. Now trading below book value, HELE is a traditional, cash-generative business with recession-resistant brands that offer stability. With a base-case 50–100% upside and private equity interest a plausible catalyst, this is a classic value play with limited downside and significant rerating potential as execution continues. Previously, we have covered a bullish thesis on On Holding AG (ONON) in October 2024, written by Sanjiv on Substack, which, like Helen of Troy (HELE), operates in the consumer space with strong brand equity and margin expansion potential. While ONON represents a premium growth story and HELE a classic value opportunity, both showcase how differentiated brands can thrive despite broader market pressures. Helen of Troy Limited (HELE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held HELE at the end of the first quarter which was 28 in the previous quarter. While we acknowledge the risk and potential of HELE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
19-04-2025
- Business
- Yahoo
Is Helen of Troy Limited (HELE) the Ridiculously Cheap Stock to Invest in?
We recently published a list of . In this article, we are going to take a look at where Helen of Troy Limited (NASDAQ:HELE) stands against other ridiculously cheap stocks to invest in. Just as we hunt for bargains in the commodity market—comparing relative prices, identifying discounted products, and getting the product most valued for our money—investing in the financial market isn't any different. In both investments, price matters. In a world of overpriced stocks, spotting the hidden gem is what differentiates a smart investor from an impulsive investor. One who realizes that value isn't just about what you buy rather it's more about what you pay, is the one who is likely to identify an overlooked but full of value stock. Let's first understand what a cheap stock actually implies. There are two most common interpretations of such a stock. First, a stock may be regarded as a cheap stock if it has a low share price. Second, an undervalued stock is more commonly known as a cheap stock. Our analysis resonates with the second interpretation, that a cheap stock is a stock that is trading below its intrinsic value based on factors like earnings, revenue, or assets. Thus, in the market, investors say it's 'cheap' relative to its true potential, making it a compelling investment. One such measure to spot a cheap stock is through the forward price-to-earnings ratio. This is a measure used by investors to actually see how much they are paying for each dollar of a company's earnings. A low P/E can signal an undervalued stock when compared to its competitors, historical average, and broader market average. A report by Hoover Capital Management (HCM) analyzes the historical performance of value versus growth stocks through the French High Minus Low (HML) factor. The results from 97 years of data, from July 1926 to December 2023, strongly support value investing. The cumulative return of value stocks surpassed growth stocks by an impressive 3,000%. In other words, value investing has delivered a 30 times higher return on growth than growth investing. It can be further reinforced through the research by Economist Victoria Galsband, according to which cheap stocks outperformed growth stocks from 1975 to 2010 in every single G7 country, including Canada, the U.S., Japan, and the leading European countries. Another report that analyzed the impact of additions or removals of companies from the S&P index on their valuations indicated that, as removals are associated with the undervaluation of the stock and vice versa, many companies removed from the index outperformed the market. A study by Research Affiliates highlighted that stocks taken out of the S&P between 1990 and 2022 outperformed those that were added by more than 5% annually. This provides a compelling case for our view that undervalued stocks, translated to cheap stocks, have a greater probability of yielding higher returns. We have compiled a list of 11 ridiculously cheap stocks through the Finviz screener. In doing so, stocks have been selected that have a lower than 5 price-to-earnings (P/E) ratio. These stocks cover a range of industries, from consumer products to natural resources exploration. These companies are then listed according to their P/E ratios, from highest to lowest. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A woman in a spa setting, using Health & Wellness products. Forward P/E as of April 17: 4.13 Helen of Troy Limited (NASDAQ:HELE) is a leading global consumer products company with a focus on creative solutions through well-diversified and widely recognized brands. Headquartered in Hamilton, Bermuda, the company mainly operates through the Home and Outdoor and Beauty and Wellness segments. HELE emphasizes product innovation, product quality, and competitive pricing. Helen of Troy Limited (NASDAQ:HELE)'s recent acquisition of Olive & June, a high-end nail care brand, is what makes it a bull. This is a testament to the giant's diversification approach, as the traditional offerings were limited to hair appliances and skin care. In the fourth quarter, the acquisition is anticipated to contribute $17 to $19 million in revenue, with even further upside expected in the years ahead. Noel Geoffroy, the Chief Executive Officer, made the following comment: 'We see significant growth potential in Olive & June as the team continues to build on the brand's strength and consumer obsession and breakthrough commercial and product innovation in addition to leveraging Helen of Troy capabilities to help expand availability with increased distribution.' Helen of Troy Limited (NASDAQ:HELE) is consistently investing in product innovation and marketing, the two key pillars of any leading business strategy. This, along with improved flu-related sales, distribution benefits, and gains from the acquisition, can assist the company in making positive revenue growth in the coming quarters. While the company is at high risk of tariffs, as it is heavily sourcing goods from China, the impact can be negated through cost savings under Project Pegasus, volume leverage, synergy savings, and strategic pricing considerations in the long haul. Much of the success of Helen of Troy Limited (NASDAQ:HELE) lies in the cost minimization strategies in FY26, similar to those of FY25, under the Project Pegasus initiative. The one-year price target of $78.33 highlights a whopping 135% increase in the stock price. With that being said, HELE is poised for long and sustainable growth and is one of the best cheap stocks to invest in. Overall, HELE ranks 6th on our list of ridiculously cheap stocks to invest in. While we acknowledge the potential of cheap stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HELE but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . 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Yahoo
09-02-2025
- Business
- Yahoo
Why Helen of Troy Limited (HELE) Is Among the Best Hair Care Stocks to Buy
We recently published a list of the . In this article, we are going to take a look at where Helen of Troy Limited (NASDAQ:HELE) stands against other best hair care stocks to buy right now. According to a report by Mordor Intelligence, the global hair care industry is valued at $93.89 billion as of 2025. It is anticipated to grow at a compound annual growth rate of 3.4% between 2025 and 2030 and reach $110.97 billion by 2030. The Asia-Pacific region is the largest market for the hair care industry worldwide. However, South America takes the top spot as the fastest growing. The steady growth in the global hair care industry can be attributed to various factors, including consumers' evolving preferences and increasing technological advancements. In addition, macro trends such as a growing focus on personal wellness, inclination towards top luxury and premium hair care brands, and growing disposable incomes are further supporting growth in the global hair care industry. The demand for eco-friendly and sustainable solutions is also growing, as consumers are inclined towards organic, natural, and vegan hair care solutions and products. Another prominent driver of market growth in the global hair care industry is the rising prevalence of hair concerns. These include hair fall, dandruff, heat damage from styling tools, and other conditions. Around 50 million men and 30 million women in the United States were affected by androgenetic alopecia in 2023 alone. Androgenetic alopecia is commonly known as male-pattern baldness in men and female-pattern hair loss in women. The rise of such concerns is ballooning the demand for specialized hair care products. The hair loss treatment segment is thus anticipated to grow at a compound annual growth rate of 7.6% between 2024 and 2029. Another report by Mordor Intelligence shows similar trends in the hair care products market. It has a size of $94.10 billion as of 2025 and is expected to grow at a compound annual growth rate of 3.39% between 2025 and 2030. This translates to an anticipated market size of around $111.16 billion by 2030. Specialized concerns such as hair and scalp problems are driving this growth. In addition, consumers are inclined towards hair care products recommended by professionals, further driving the market. READ ALSO: and . American consumers are rightfully skeptical about the future, wondering if President Donald Trump's tariffs could lead to a trade war. Trump said he would impose 25% tariffs on Canadian and Mexican goods and 10% on imported goods from China. He also signaled that potential tariffs on items imported from the European Union may be next. According to CNBC, Trump agreed to halt tariffs against Mexico for a month and delay those against Canada for at least 30 days. However, China has already responded with additional tariffs of up to 15% on goods imported from the United States. American consumers expect these tariffs to directly impact their wallets. A recent consumer survey conducted by BOE on the potential effects of tariffs on consumers found that nearly 86% of Americans believed their wallets would be affected by the scenario. 12% are already stockpiling items, with a majority of others changing their shopping habits to accommodate the effects of these tariffs on their bank accounts. Economists corroborate this view and say that many businesses will likely pass down the additional expenses to customers, indirectly or directly. This is why tariffs typically trigger increased prices for consumers. Higher tariffs on items traded between the US and China may result in inflated prices on appliances, apparel, electronics, and toys. Similarly, tariffs against Canada and Mexico may increase the already existing pressure on grocery prices. According to the Bureau of Labor Statistics, grocery prices are up 28% over the last five years. These conditions are materializing when consumer spending is already stretched, with many households feeling financial strain. The US economy has noted steady progress overall in bringing inflation down. According to the Bureau of Labor Statistics, the consumer price index, a significant inflation measure, increased 2.9% in December 2024 compared to a year earlier, down from a June 2022 pandemic-era high of 9.1%. However, most cases show a slowing in price increases instead of a significant fall. We sifted through stock screeners, online rankings, and ETFs to compile a list of 25 hair care stocks. We then selected the top 12 most popular stocks among elite hedge funds as of Q3 2024. We sourced the hedge fund sentiment data from Insider Monkey's database. The list is sorted in ascending order of hedge fund sentiment. Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). A woman in a spa setting, using Health & Wellness of Troy Limited (NASDAQ:HELE) is a global consumer products company with an elaborate portfolio of brands, including Curlsmith, OXO, PUR, Hot Tools, Osprey, and more. It operates in the Beauty and Wellness and Home and Outdoor segments. The Beauty and Wellness segment offers beauty and wellness products, including hair styling appliances, grooming tools, and more. The company continued to benefit from the meaningful net distribution gains it won in the first half of fiscal year 2025 and further expanded distribution in fiscal Q3 2025. It has grown its US weighted distribution by 11% year-over-year in fiscal year-to-date. The company has also attained meaningful international distribution via new channels and new distributor partnerships. Helen of Troy Limited (NASDAQ:HELE) has various other strategic initiatives that position it on the path to growth. It is making progress in using data and analytics across all facets of its business. For instance, it is continually using its marketing mix model to prioritize investment opportunities across its brand portfolio and choose the marketing tactics with the best ROI potential. Such efforts have led to market share growth in various categories. Another of its long-term strategic initiatives includes refining and shaping its portfolio to maximize profitable growth. Helen of Troy Limited (NASDAQ:HELE) also announced the closing of its acquisition of Olive & June at the end of fiscal Q3 2025, which is expected to further support the company's growth. Palm Valley Capital Fund stated the following regarding Helen of Troy Limited (NASDAQ:HELE) in its Q3 2024 investor : 'Helen of Troy Limited (NASDAQ:HELE) was the only new purchase made during Q3. It is a diversified consumer products roll-up. The company's top brands include OXO, Hydro Flask, Osprey, PUR, Hot Tools, and Dry Bar. Helen also has leading market positions through the licensed brands Braun, Vicks, Honeywell, and Revlon. The company's operating performance peaked during the pandemic, but sales have contracted in the last two years as consumer demand for Helen's products has normalized post-stimulus. The firm's stock is heavily shorted, with short sellers arguing that Helen is an overleveraged and broken roll-up with second-tier brands and meager cash flow. We believe this is wrong. Most of the company's brands command leading shares in their markets.' Overall, HELE ranks 9th on our list of best hair care stocks to buy right now. While we acknowledge the potential of HELE, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HELE but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
