Helen of Troy Limited Q4 FY2026 earnings call

Scott mentioned focusing on execution, net sales exceeding expectations, adjusted EPS in line. Margins reflect strategic investment. Actions taken to address challenges like organizational changes, inventory management, tariff mitigation, debt reduction. Fiscal 27 plans include phase one of a multi-year roadmap focusing on restoring brand momentum, powering portfolio, futurist capabilities, strategic investment, consumer-centered decision-making, modernizing operations, platform improvements. Pillars include consumer-first innovation, commercial and operational excellence, people and culture. Brian discussed fourth quarter results, net sales, gross profit margin, SG&A ratio, balance sheet highlights, full year fiscal 27 outlook.

Home and outdoor segment sales declined 1.5% ahead of expectations. OXO and Hydroflask were ahead of plan, and Osprey contributed solid year-over-year growth. OXO benefited from good point of sale at value customers and replenishment at mass. Hydroflask benefited from the success of recent product launches and also saw strength in the closeout channel as we improved our inventory composition. Osprey's growth was primarily driven by the e-commerce channel, their continuing stream of new products and expansion into adjacencies, and the clearance of end-of-season goods through the outdoor channel. Beauty and wellness sales decreased 4.7%, with approximately 2.8 percentage points driven by tariff-related disruption. Revlon, Olive & June, and Braun were the standouts in the quarter. Revlon outperformed our expectations, driven by continued strong point of sale at Walmart and Target, and a solid contribution from International. Olive & June saw organic growth in its business of 18%, and contributed 4.9 percentage points of growth to total segment sales, driven by effective digital grassroots marketing, new product introductions, and strong brand loyalty and consumer engagement. International sales grew 5.4%, surpassing expectations with strong point of sale, expanded distribution, and new product innovation.

Full year fiscal 27 net sales expected to be in the range of $1.751 billion to $1.822 billion. Home and outdoor net sales $854 million to $882 million, beauty and wellness $897 million to $940 million. Adjusted EBITDA $190 million to $197 million, adjusted EPS $3.25 to $3.75, free cash flow $85 million to $100 million. Expect quarterly sales cadence to be uneven, first half slightly positive, second half slightly negative. Tariffs in place as of April 2026 assumed to remain, no significant fluctuation in commodity costs, freight, or supply availability. Interest expense $47 to $49 million, net leverage ratio approximately 3.2 times or lower by year end, full year adjusted effective tax rate 25 to 27%, continued working capital efficiency, capital expenditures 28 to 32 million, assuming April 2026 foreign currency exchange rates remain constant.

Risks related to macro environment, including volatile market, impact of flu season on wellness products, retail inventory stabilization, geopolitical uncertainty affecting tariffs, supply chain disruptions from conflicts like Iran, commodity price fluctuations, freight cost spikes.

Q: Scott, frame what success looks like on the other side of the current phase.

A: Healthy Helen of Troy is about being a better company first, with consumer at center, healthy brands, critical capabilities, right culture and people, and healthy balance sheet.

Q: Brian, level of confidence in guidance inflection, impact of commodity cost, freight, supply availability.

A: Not attempted to model Iran conflict impacts, but taking actions to minimize, cadence due to prior year and current year dynamics.

Q: Bob Lavick on revenue guidance price baked in, retailer acceptance.

A: About $50 million price impact, almost 100% planned price increases in place.

Q: Susan Anderson on beauty and wellness brand performance, home and outdoor Osprey.

A: Olive and June, Revlon strong in beauty, wellness weaker; home and outdoor Osprey trending up, taking share.

Q: Olivia Tong on category growth, commodity cost change.

A: Categories pressured, current POS trends assumed, offset by lapping prior year headwinds, price increases, innovation, international growth.