Helen of Troy Limited (NASDAQ: HELE) released its financial results for the third quarter, highlighting an unexpected combination of revenue performance and profitability concerns that led management to revise its full-year fiscal 2026 guidance. The company recorded quarterly sales of $512.829 million, which, while representing a 3.4% decrease compared to the same period in the prior year, surpassed the collective analyst forecast of $503.587 million.
Adjusted earnings per share (EPS) for this quarter stood at $1.71, aligning exactly with the consensus estimate provided by market analysts. Despite matching EPS expectations, Helen of Troy’s overall profitability picture prompted a downward revision to its fiscal 2026 performance outlook.
Specifically, the company has lowered its adjusted EPS forecast for the fiscal year 2026 to a range of $3.25 to $3.75, down from the previous guidance of $3.75 to $4.25. This revised EPS projection falls short of the $4.02 per share anticipated on average by the analyst community. Meanwhile, the updated sales forecast has been narrowed slightly, now estimated between $1.758 billion and $1.773 billion, compared with the prior range of $1.739 billion to $1.780 billion. This revised sales outlook closely aligns with the consensus estimate of $1.763 billion.
The company's stock price reacted negatively to the earnings report and guidance updates. On the trading day following the announcement, shares declined 5.5%, closing at $19.44.
Following the earnings disclosure and guidance revision, several analysts adjusted their price targets for Helen of Troy. Canaccord Genuity’s Susan Anderson reaffirmed a Hold rating on the stock but reduced her price target from $23 to $22. Similarly, UBS analyst Peter Grom maintained a Neutral rating and lowered his price target from $25 to $22, reflecting the company’s moderated earnings outlook.
These analyst updates indicate cautious optimism among market watchers, emphasizing prudence in light of the lowered profitability guidance despite revenue exceeding expectations.
Helen of Troy continues to navigate a challenging environment marked by a slight year-over-year revenue decrease and adjustments in earnings guidance. Monitoring the company’s ability to convert sales momentum into improved profitability will be key for investors going forward.