Helen of Troy Plunges After It Misses Q1 Estimates and Cuts Outlook

Helen of Troy (HELE) shares cratered much than 30% Tuesday aft nan user products patient posted lower-than-expected results and slashed its outlook connected falling request for its beauty and wellness products.

The institution down brands including Revlon, Vicks, and OXO reported fiscal 2025 first-quarter adjusted earnings per stock (EPS) of $0.99, good beneath nan $1.59 statement estimate of analysts compiled by Visible Alpha. Revenue slid 12.2% year-over-year to $416.8 million, besides short of forecasts.

Helen of Troy blamed nan driblet successful gross chiefly connected a diminution successful income of hairsbreadth appliances, prestige hairsbreadth attraction products, and humidifiers, arsenic good arsenic little replenishment orders from unit customers and nan effect of method issues astatine its Tennessee distribution center.

Sales astatine nan Beauty & Wellness conception tumbled 15.2% to $218.4 million, and Home & Outdoors portion income were down 8.6% to $198.5 million. 

'Unusual Number of Internal and External Challenges'

Chief Executive Officer (CEO) Noel Geoffroy said Helen of Troy “battled an different number of soul and outer challenges successful nan quarter.” He warned that galore of those challenges “became much pronounced toward nan extremity of nan first 4th and immoderate proceed to evolve.“

Because of that, nan institution has trim its full-year guidance for adjusted EPS to $7.00 to $7.50 from its earlier prediction of $8.70 to $9.20. It besides sees Beauty & Wellness income sinking 5.0% to 8.0%, and Home & Outdoors income falling 1.0% to 3.0%, worse than erstwhile forecasts.

Shares of Helen of Troy mislaid astir a 3rd of their worth soon aft nan opening doorbell Tuesday, sinking to their lowest constituent successful astir a decade.