Helen of Troy cited continued competition, lower replenishment orders from retailers due to softer demand, and a decrease in club channel sales in insulated beverageware after reporting a 6.7% dip in net sales in the third quarter ended Nov. 30 within its home and outdoor segment, which includes brands Hydro Flask and Osprey.
The main softness in division is coming from Hydro Flask, the company indicated, while sales at Osprey grew in the quarter.
Price increases due to tariffs and a strong demand for travel, technical and lifestyle packs partially offset the company’s challenges, which also include lower closeout channel sales, according to a news release.
Retailers are currently in a phase of “inventory rebalancing,” said the release.
Helen of Troy’s Q3 Results
Overall, Helen of Troy reported:
- Net sales of $512.8 million, a 3.4% decline from $530.7 million in Q3 fiscal 2025.
- A gross profit margin decline to 46.9% from 48.9%.
- An operating margin loss of 1.6%, impacted by $65.9 million in non-cash asset impairment charges.
- A net loss of $84.1 million, compared to a net income of $49.6 million in the same quarter last year.
- Adjusted EPS: $1.71, down from $2.67.
Full Year Outlook
Helen of Troy anticipates net sales revenue in the range of $1.758 billion to $1.773 billion, a decrease from $1.908 billion in fiscal 2025. Home and outdoor net sales are projected to be in the range of $812 million to $819 million, down from $906.3 million in the previous year.
“We are sharpening our priorities and placing the consumer at the center of everything we do – investing in innovation, strengthening brand loyalty, and advancing commercial excellence,” said CEO G. Scott Uzzell in a statement. “I am confident that we are taking the right steps to position us to deliver sustained revenue and profit growth and create long-term value for all stakeholders.”
