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Helen of Troy shares fall 25% after Q1 earnings report

Posted on by darion

Helen of Troy Limited (NASDAQ: HELE) fell 25% in pre-market trading on Tuesday after reporting disappointing first-quarter financial results.

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The company’s shares are falling as its household appliances, health and beauty products business also failed to impress in terms of future prospects.

Helen of Troy shares are down about 45% since the start of 2024.

Helen of Troy shares fall after forecasts are lowered


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Helen of Troy today lowered its full-year consolidated net sales forecast to between $1.885 billion and $1.935 billion.

The Nasdaq-listed company also lowered its adjusted earnings per share guidance to $7.00 to $7.50 for fiscal 2025. Noel M. Geoffroy, CEO of HELE, said in a press release today:

We are disappointed with the start to our fiscal year. We faced an unusual array of internal and external challenges this quarter. Many of these challenges became more apparent toward the end of Q1, and some continue to evolve.

At the time of writing, Helen of Troy shares are trading at their lowest level since the beginning of the year.

Helen of Troy Q1 Earnings Summary


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Helen of Troy on Tuesday reported revenue of $419 million for its fiscal first quarter, missing expectations by about $29 million.

At 99 cents, the Texas company’s adjusted earnings per share also missed the consensus estimate by about 60 cents. CEO Geoffroy also said today:

We now view this fiscal year as a time to take action to reset and reinvigorate our business. As a result, we are lowering our annual guidance, which delays the delivery of the long-term financial algorithm in our strategic plan.

Before the earnings were released, Wall Street had a consensus rating of “overweight” for Helen of Troy shares. Analysts on average had been predicting a rise to $129 — about a 90% increase from that point.

What else is worth noting in the HELE report?


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On a positive note, Helen of Troy improved its gross profit margin by 330 basis points in the recently completed quarter to 48.7%.

The $2.0 billion company spent about $100 million to buy back 1,011,243 of its common shares in Q1. According to CEO Noel M. Geoffroy:

Despite the challenges, I am confident that the strategies we are implementing are the right ones to improve the long-term health of our brands, return the company to positive growth and deliver sustainable shareholder value.

Helen of Troy shares currently pay no dividend, making them unattractive to income investors. HELE traded at a higher price, close to $250 during the pandemic in 2021.