Helen of Troy (NASDAQ:HELE) delivered a surprise first-quarter profit and raised its full-year revenue guidance, pointing to early progress in its multi-year restructuring effort.
The consumer products company posted adjusted earnings per share of $0.17 for the quarter, sharply beating the analyst consensus, which had called for a loss of $0.01 per share.
Net sales climbed 8.2% year-over-year to $402.1 million, topping forecasts of roughly $374.5 million. Growth was broad-based, with the Home & Outdoor segment up 9.5% and Beauty & Wellness rising 7%.
Following the results, management raised its fiscal 2027 revenue guidance to a range of $1.76 billion to $1.83 billion. Adjusted earnings guidance was maintained at $3.25 to $3.75 per share, a level the company said reflects stabilization after steep declines in fiscal 2026.
The results build on Project Pegasus, a multi-year restructuring program aimed at modernizing the business and improving operating margins. As part of that effort, Helen of Troy (NASDAQ:HELE) has been diversifying its supply chain to limit exposure to China-related tariffs, targeting China-sourced products at 25% to 30% of consolidated cost of goods sold by the end of fiscal 2026.
Gross margin fell 110 basis points to 46% in the quarter due to tariff pressure and customer mix, though cost savings from Project Pegasus helped offset the impact.
Management said it is focusing marketing and innovation spending on brands including OXO, Hydro Flask and Osprey, aiming to fund reinvestment through revenue growth.
The company’s broader portfolio spans the Home & Outdoor and Beauty & Wellness segments and includes Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith, Revlon and Olive & June.
Shares of Helen of Troy were down 2.2% on Wednesday morning.
