Executives at Helen of Troy, Osprey and Hydro Flask’s parent company, warned that tariffs and constantly changing trade policy at the federal level are so disruptive, the company would not be able to forecast its fiscal 2026 results and would be abandoning its long-term strategy until there is more certainty.
“The scope, severity, speed and daily changes to global trade policy are creating significant uncertainty and disruption to our business, and all indicators suggest we will see a meaningful impact to consumer behavior as a result,” said CEO Noel Geoffroy in her prepared remarks on the company’s Thursday morning earnings call. “Until we have more clarity, we are not in a position to provide fiscal ‘26 guidance at this time, and we are also stepping back from the long-term algorithm we laid out at our investor day in October 2023.”
Instead, the company is pivoting toward mitigating the impacts of tariffs, which have increased to as high as 145% on products from China in recent weeks. So far, the company is:
- Pausing some purchases from China that were destined for the U.S. market.
- Relying on current inventory, some of which includes additional purchasing made in advance of the tariffs, to meet short-term demand.
- Accelerating its plan to diversify its supply chain outside of China.
- Refreshing SKU prioritization with latest data insights to allocate purchases and effort toward promising and profitable opportunities.
- Evaluating pricing and promotional plans with retailers.
- Evaluating marketing spending to focus on highest ROI and highest relevance in the new environment.
- Reducing costs through organizational changes.
- Aligning supply chain and IT to support current priorities.
- Leaning into international opportunities that aren’t subject to tariffs.
“We believe that consumers will become even more cautious with their spending, and many of our leading brands are well positioned to offer consumers benefits they seek at a great value,” Geoffroy said.
Fourth Quarter and Full Year Results
Net sales revenue in Helen of Troy’s home and outdoor segment, which includes Osprey and Hydro Flask, decreased 1.6% to $219.8 million year-over-year in the fourth quarter. The company attributed the decline to the competitive insulated drinkware category, softer overall consumer demand, and lower club sales in the home category. The decline was offset by growth in packs, higher international sales across all categories, and new and expanded retailer distribution in insulated drinkware and home goods.
Product highlights included Hydro Flask’s Micro Flask, which was designed for portable hot and cold beverages for the Japanese market, and is also performing well in the U.S. Osprey earned praise for its Daylite backpack, Daylite sling, and Aeode Brief Pack.
Consolidated companywide net sales declined by 4.9% to $1.9 billion in fiscal 2025 compared to the previous year. In the quarter, total consolidated net sales declined by 0.7% in the three months ended Feb. 28 to $485.9 million.
Net income for the fiscal year declined 26% to $123 million. In the fourth quarter, net income increased 19% to $50.9 million.
“As we enter fiscal 2026, we find ourselves in volatile times,” Geoffroy said. “The rapidly changing global tariff actions are creating significant uncertainty in the marketplace which we believe will have a profound impact on the economy broadly, and consumer sentiment specifically, making business planning a challenge.”
