Helen of Troy Reports $308.6 Million Loss in Q2 FY2026 Amid Impairment Charges

2025-10-10 companies

Ellisville, Thursday, 9 October 2025.
Helen of Troy Limited announced a significant net loss for Q2 FY2026, primarily due to $326.4 million in non-cash asset impairment charges. The company’s sales declined by 8.9% year-over-year.

Significant Financial Losses and Impairment Charges

Helen of Troy Limited (NASDAQ: HELE) reported a net loss of $308.6 million for the second quarter of fiscal year 2026, ending August 31, 2025. This loss is primarily attributed to $326.4 million in non-cash asset impairment charges, as the company continues to face financial challenges [1][2].

Sales Decline and Market Impact

Consolidated net sales for the company fell by 8.9% year-over-year, amounting to $431.8 million, down from $474.2 million in the previous year. This decline in sales has significantly impacted the company’s financial standing, contributing to a diluted loss per share of $13.44, a stark drop from the $0.74 earnings per share recorded in Q2 FY2025 [1][3].

Operational Challenges and Strategic Outlook

Helen of Troy’s operating margin also suffered, plummeting to (73.1%) from 7.3% in the same quarter last year. This downturn is exacerbated by increased tariffs, higher retail trade, promotional expenses, and outbound freight costs, which have further strained the company’s profitability [1][4]. Despite these setbacks, the company has set a fiscal 2026 outlook with projected consolidated net sales ranging between $1.739 billion and $1.780 billion, with anticipated GAAP diluted losses per share between $29.90 and $29.40 [2][5].

CEO and CFO’s Perspectives

CEO Scott Uzzell, who joined the company recently, expressed confidence in the potential for a comeback, emphasizing the need for strategic adjustments and operational improvements. CFO Brian Grass noted that while the results are unsatisfactory, they align with the upper end of the company’s guidance, suggesting some degree of operational recovery amidst ongoing business disruptions [3][6].

Sources

financial results net loss