HELEN OF TROY LTD SEC 10-Q Report

Helen of Troy Ltd, a global consumer products company specializing in home, outdoor, beauty, and wellness products, has released its Form 10-Q report for the first quarter of fiscal 2025. The report reveals significant financial and operational developments, reflecting the company's performance amidst a challenging economic environment.

Financial Highlights

Sales revenue, net: $371.655 million, reflecting a decrease from $416.847 million in the same period last year, impacted by a combination of factors including the pause or cancellation of China direct import orders by key retailers in response to increased tariff rates.

Gross profit: $175.011 million, down from $203.079 million in the prior year, indicating a decline in profitability due to increased cost pressures.

Operating (loss) income: $(407.038) million, compared to an operating income of $30.763 million in the previous year, primarily due to asset impairment charges totaling $414.4 million.

Net (loss) income: $(450.718) million, a significant decline from a net income of $6.204 million in the prior year, largely driven by impairment charges and a challenging economic environment.

(Loss) earnings per share: Basic: $(19.65), compared to $0.26 in the previous year, reflecting the impact of the net loss on shareholder value.

Business Highlights

Revenue Segments: The company operates through two main segments: Home & Outdoor and Beauty & Wellness. The Home & Outdoor segment focuses on products for home activities and outdoor performance, while the Beauty & Wellness segment offers beauty and wellness products.

Geographical Performance: Approximately 69% of the company's net sales revenue was from U.S. shipments during the three months ended May 31, 2025. The international sales revenue accounted for 25.2% of total sales, indicating a significant presence outside the U.S.

New Product Launches: The acquisition of Olive & June, an omni-channel nail care brand, was completed on December 16, 2024. This acquisition broadens the Beauty & Wellness segment's portfolio beyond hair care, adding products like nail polish, press-on nails, and manicure systems.

New Production Launches: The company completed the construction of an additional distribution facility in Gallaway, Tennessee, which became operational during the first quarter of fiscal 2024. This facility is expected to enhance distribution capabilities, particularly for online sales.

Future Outlook: The company anticipates continued uncertainty due to inflation, evolving global tariff policies, and changes in consumer spending patterns. It plans to focus on optimizing working capital, balancing sheet productivity, and leveraging its distribution capabilities to meet changing consumer demands.

SEC Filing: HELEN OF TROY LTD [ HELE ] - 10-Q - Jul. 10, 2025