Helen of Troy Limited Q1 FY2026 earnings call

• Priorities: Restoring confidence, improving go-to-market effectiveness, refocusing on innovation, focusing on fundamentals, reinvigorating culture.
• Quarter highlights: US point of sale unit growth in eight out of 11 key brands, point of sale dollar growth in US mass of 4.4%, strong category growth in some areas, strong free cash flow of $45 million compared to $16 million in same period last year.

Home and Outdoor: Net sales declined 10.3%, with approximately 6.7 percentage points of the decline driven by tariff-related disruption, including direct import cancellations and pull forward activity. Beauty and Wellness: Net sales declined 11.3%, with approximately 9.7 percentage points of the decline due to tariff-related disruption, including direct import cancellations and softer international sales. Specific brands: OXO brand fundamentals strong, Hydro Flask saw growth with new product launches, Osprey posted nice growth, Revlon gaining share in the below $100 category, Curlsmith grew with new innovations, Olive and June continued momentum, Braun benefited from category growth and market share gains.

• Second quarter net sales expected between $408 and $432 million, implying decline of 14% to 9%.
• Consolidated adjusted diluted EPS expected in range of 45¢ to 60¢.
• Inventory levels expected to increase to $510 million to $520 million at end of second quarter.
• Majority of direct tariff costs expected to impact second half of fiscal year, with diversification efforts aiming to mitigate supply chain risk.

• Macroeconomic uncertainty, geopolitical friction, and trade disruption.
• Consumer trading down leading to average price compression in US business.
• Uncertainty regarding global trade policy and its impact on revenue and cost.

Q: Please elaborate on pricing plans, elasticity considerations.

A: Implementing average price increase across portfolio in range of 7% to 10%, with conservative elasticity assumptions due to challenging environment.

Q: How to think about long-term earnings power given first quarter performance and guidance?

A: Exogenous impacts in Q1 and Q2, consensus estimates need adjustment due to tariff changes and mitigation plan shifts, with second half expected to show improvement.

Q: Comment on retail distribution gains and CEO search process.

A: Distribution gains in areas like Walmart for blood pressure monitors, Hydro Flask, Osprey; CEO search led by board, looking for someone with brand building and growth experience.

Q: Thoughts on sell-throughs at retail and inventory levels?

A: Point of sale unit growth positive but dollar down due to consumer trading down; inventory generally balanced except a few spots, with forecast for additional retailer adjustments in Q2