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Helen of Troy Gears Up for Q2 Earnings: Here's What You Should Know

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Key Takeaways

  • HELE's Q2 revenues are projected at $418.8M, down 11.7% from the year-ago period.
  • Earnings are estimated at $0.54 per share, a 55.4% decline from last year's quarter.
  • Tariffs, weak demand and higher SG&A weigh on results, partly offset by Project Pegasus savings.

Helen of Troy Limited ((HELE - Free Report) ) is likely to register a decline in both top and bottom lines when it reports second-quarter fiscal 2026 earnings on Oct. 9. The Zacks Consensus Estimate for quarterly revenues is pegged at $418.8 million, implying a 11.7% decrease from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for HELE’s quarterly earnings has remained unchanged in the past 30 days at 54 cents per share, indicating a 55.4% decline from the figure reported in the year-ago quarter. The company delivered a trailing four-quarter negative earnings surprise of almost 10.3%, on average.

Helen of Troy Limited Price, Consensus and EPS Surprise

Helen of Troy Limited Price, Consensus and EPS Surprise

Helen of Troy Limited price-consensus-eps-surprise-chart | Helen of Troy Limited Quote

Things to Know About HELE’s Q2 Earnings

Helen of Troy has been facing continued pressure from tariff-related disruptions and global trade uncertainty. On its last earnings call, management highlighted that HELE has been experiencing order cancellations and lower direct imports from China as retailers adjust to higher costs and evolving tariff policies. These headwinds are likely to have weighed on fiscal second-quarter sales and margins. To mitigate the impact, Helen of Troy has been diversifying its sourcing outside China and expects to reduce tariff exposure by the end of fiscal 2026. While supplier cost reductions and selective price increases are helping offset part of the pressure, earnings are likely to have remained constrained until trade conditions stabilize.

Helen of Troy has been navigating a challenging macroeconomic environment marked by weaker consumer and retailer demand. Consumers are facing financial constraints and prioritizing essential purchases over discretionary items. This has been impacting the company’s sales. Our model expects a 17.3% drop in organic volumes for the fiscal second quarter.

Helen of Troy has also been grappling with rising SG&A expenses. In the fiscal first quarter, the rise in the consolidated SG&A ratio was mainly due to elevated marketing expenses, increased outbound freight costs and unfavorable operating leverage. The persistence of any of these factors is a concern. We expect a 310-basis point expansion in adjusted SG&A (as a percentage of sales) to 38.9% in the fiscal second quarter.

Yet, the strength of the company’s Leadership Brands remains a cornerstone amid broader challenges. HELE’s strategic focus on operational excellence and portfolio optimization has helped stabilize performance. Its data-driven approach continues to strengthen brand fundamentals, while international expansion and distribution optimization enhance reach and efficiency. In addition, the global restructuring initiative, Project Pegasus, has been delivering cost savings. These factors are likely to have offered some respite in the to-be-reported quarter.

Earnings Whispers for HELE Stock

Our proven model does not conclusively predict an earnings beat for Helen of Troy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Helen of Troy currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Some Stocks With a Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

The Hershey Company ((HSY - Free Report) ) currently has an Earnings ESP of +1.61% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is likely to register a jump in the top line when it reports third-quarter 2025 numbers. The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $3.11 billion, which indicates an increase of 4.1% from the prior-year quarter. However, Hershey’s bottom line is estimated to decline year over year. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.06, implying a 54.7% decrease from the year-ago period. HSY delivered a trailing four-quarter earnings surprise of 8.5%, on average.

Kraft Heinz Company ((KHC - Free Report) ) currently has an Earnings ESP of +0.44% and a Zacks Rank of 3. The company is likely to register a top and bottom-line decrease when it reports third-quarter 2025 numbers. The Zacks Consensus Estimate for Kraft Heinz’s quarterly revenues is pegged at $6.27 billion, which implies a drop of 1.7% from the prior-year quarter.

The Zacks Consensus Estimate for Kraft Heinz’s quarterly earnings per share is pegged at 58 cents, indicating a 22.7% plunge from the year-ago period. KHC delivered a trailing four-quarter earnings surprise of 5.1%, on average.

Kimberly-Clark Corporation ((KMB - Free Report) ) currently has an Earnings ESP of +1.37% and a Zacks Rank of 3. The company is likely to register top and bottom-line declines when it reports third-quarter 2025 numbers. The Zacks Consensus Estimate for Kimberly-Clark’s quarterly revenues is pegged at $4.11 billion, which implies a 17.1% decrease from the prior-year quarter.

The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $1.63, indicating a 10.9% fall from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 6.2%, on average.

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