Q1 2026 Helen of Troy Ltd Earnings Call Transcript
Key Points
- Helen Of Troy Ltd (HELE) is focusing on five key priorities to rebuild its platform for profitable growth, including restoring confidence within the organization and improving go-to-market effectiveness.
- The company is seeing positive underlying improvements, such as US point-of-sale unit growth in 8 out of 11 key brands and strong category growth in areas like prestige hair liquids and air purifiers.
- Helen Of Troy Ltd (HELE) reported strong free cash flow of $45 million compared to $16 million in the same period last year.
- The company is making significant progress on tariff mitigation plans, including building out Southeast Asia sourcing capabilities and implementing strategic price increases.
- Helen Of Troy Ltd (HELE) is expanding distribution for brands like Hydro Flask and Osprey in the EMEA and Asia Pacific regions, indicating growth potential in international markets.
- Q1 results were well below expectations, with a 10.8% consolidated revenue decline, primarily due to tariff-related disruptions.
- The company is experiencing consumer trade-down behavior, with average price compression of 3% to 4% in the US business, impacting revenue and profitability.
- Tariff-related impacts are expected to persist into the second quarter, contributing to continued revenue challenges.
- Helen Of Troy Ltd (HELE) is not providing a full-year outlook due to ongoing uncertainty related to tariffs and their potential impact on revenue and costs.
- The company is facing broader demand softness across categories, driven by shifts in consumer behavior and economic uncertainty, leading to cautious retailer ordering patterns.
Greetings. Welcome to Helen of Troy Limited first quarter 2026 earnings call.
(Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce Anne Rakunas, Director of Investor Relations. Thank you. You may begin.
1% Thank you, operator. Good morning, everyone. Welcome to Helen of Troy's first quarter fiscal '26 earnings conference call.
Before I review our agenda with you, I'd like to welcome back Jack Jansen, our former SVP of Investor Relations and Business Development. He's temporarily rejoined the company while we conduct a search for a more permanent replacement for this role.
The agenda for the call this morning is as follows: I will begin with a brief discussion of forward-looking statements. Mr. Brian Grass, the company's interim CEO, will provide his thoughts on the company's current operations and key priorities for fiscal '26. Tracy Scheuerman, our interim CFO, will then provide an update on our
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