Key Takeaways:
- Osprey was the standout performer in Helen of Troy’s Home and Outdoor segment in the first quarter of fiscal 2027.
- Hydro Flask returned to growth on expanded retail distribution at Dick’s Sporting Goods and a Target planogram reset.
- Home and Outdoor segment net sales climbed 9.5% to $194.9 million as the wider company topped Wall Street expectations.
Helen of Troy Limited pointed to its outdoor brands as the primary engine behind a stronger-than-expected first quarter of fiscal 2027, with executives crediting Osprey and Hydro Flask for driving growth in the Home and Outdoor segment during the company’s July 8 earnings call.
Osprey Leads the Segment
On the call, company leadership described Osprey as the strongest performer among the three Home and Outdoor brands, with growth tied to improvements in the brand’s international distribution network and continued momentum in ecommerce. The official earnings release credited the segment’s overall gain to strong international demand for technical, lifestyle and travel packs, along with incremental sales from new product launches.
Home and Outdoor net sales revenue rose $16.9 million, or 9.5%, to $194.9 million in the quarter, according to the company’s press release. The release also cited higher sales from expanded distribution in the home and insulated beverageware categories, along with a favorable year-over-year comparison, since tariff uncertainty had pulled some retailer orders out of the first quarter of fiscal 2026 and into the fourth quarter of fiscal 2025.
Hydro Flask Returns to Growth
Executives said Hydro Flask’s improvement reflected expanded retail distribution, inventory optimization and ecommerce momentum. Asked on the call to detail where that distribution growth was coming from, management pointed to expanded distribution at Dick’s Sporting Goods along with a planogram reset at Target. Ecommerce gains were described as supported in part by Amazon.
Company leadership framed the broader Home and Outdoor performance as broad-based across all three brands in the segment, noting that OXO also grew as it lapped prior-year tariff-related disruption and benefited from strong point-of-sale trends and expanded brick-and-mortar distribution.
Margins And Executive Commentary
Segment operating income for Home and Outdoor was $8.2 million, or 4.2% of segment net sales, in the quarter, according to the earnings release, compared with an operating loss of $213.8 million a year earlier that had included $219.1 million in noncash asset impairment charges. On an adjusted basis, Home and Outdoor operating income increased 39.2% to $12.3 million, or 6.3% of segment net sales.
Scott Uzzell, Chief Executive Officer, said in a statement that the company was “off to a solid start in fiscal 2027,” pointing to net sales and adjusted earnings per share that came in above expectations with growth across both business segments.
On the call, leadership also noted that the quarter benefited companywide from an estimated $4 million to $5 million tied to the earlier calendar timing of Amazon Prime Day, which pulled some order volume into the first quarter.
Companywide Results
Beyond the outdoor brands, Helen of Troy reported consolidated net sales revenue of $402.1 million for the quarter, an increase of 8.2% compared to the same period last year, per the official release. The Beauty and Wellness segment grew net sales 7% to $207.2 million, helped by nail care, fans and thermometers, along with new and expanded distribution.
Consolidated gross profit margin decreased 110 basis points to 46%, which the company attributed to the net unfavorable impact of tariffs, a less favorable year-over-year inventory obsolescence comparison, and a less favorable customer mix within Home and Outdoor.
GAAP diluted earnings per share were $1.51, which included an after-tax gain of $1.74 tied to the sale of a distribution facility. Non-GAAP adjusted diluted EPS was $0.17, compared with $0.41 in the prior year quarter. Net income was $35.8 million, reversing a prior-year net loss of $450.7 million that had included large noncash asset impairment charges.
Total debt stood at $716.1 million at quarter end, down from $871n million a year earlier.
Fiscal 2027 Outlook
Helen of Troy raised its full-year consolidated net sales outlook to a range of $1.759 billion to $1.831 billion. Home and Outdoor net sales guidance for the full year is now $859 million to $884 million. The company maintained its adjusted diluted EPS guidance of $3.25 to $3.75 and its adjusted EBITDA guidance of $190 million to $197 million.
The outlook assumes tariff rates in place as of June 2026 remain in effect for the balance of the fiscal year and includes an expected benefit of approximately $9.2 million from Phase 1 tariff refunds, while excluding any potential benefit from future refund phases given uncertainty around their timing and collectability.
