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HELE Q2 Earnings on the Horizon: Essential Insights for Investors

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Key Takeaways

  • HELE's Q2 revenues are projected at $441.5M, up 2.2% from the year-ago period.
  • Earnings are estimated at 51 cents per share, a 13.6% decline from last year's quarter.
  • HELE's brand momentum and digital initiatives may help offset softer demand and rising cost pressures.

Helen of Troy Limited (HELE - Free Report) is likely to witness top-line growth in its second-quarter fiscal 2027 earnings, to be reported on Oct. 8. The Zacks Consensus Estimate for quarterly revenues is pegged at $441.5 million, implying a 2.2% increase from the prior-year quarter’s reported figure.

The consensus estimate for HELE’s quarterly earnings has remained unchanged in the past 30 days at 51 cents per share, indicating a 13.6% decline from the figure reported in the year-ago quarter. The company delivered a trailing four-quarter earnings surprise of almost 196.3%, 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’s second-quarter fiscal 2027 results are likely to reflect continued progress across its brand and commercial initiatives. The company has been focusing on consumer-led innovation, stronger brand execution and expanded distribution across key businesses. Momentum in Osprey, OXO, Hydro Flask, Braun and Olive & June, supported by new products, retail expansion and improving point-of-sale trends, might have aided sales performance during the quarter. Our model predicts a 1.4% gain in organic volumes for the fiscal second quarter.

Digital and omnichannel initiatives are also likely to have remained supportive. Helen of Troy has been working to improve pricing alignment across e-commerce channels, strengthen marketplace discipline and enhance its digital shelf and retail-media effectiveness. The company has also been linking demand signals, promotional plans and inventory decisions more closely, while maintaining a focus on inventory optimization and working-capital efficiency. These efforts might have supported execution during the quarter. 

However, the fiscal second-quarter performance might have been constrained by a challenging demand environment. On its first-quarter fiscal 2027 earnings call, management continued to anticipate inflationary pressures, softer discretionary demand, cautious retailer behavior and elevated promotional intensity. Pricing elasticity has also remained a concern in certain categories, particularly across some core beauty brands. Moreover, the earlier timing of Prime Day had shifted some sales into the fiscal first quarter, which might have weighed modestly on the fiscal second-quarter revenues.

Profitability is likely to have faced pressure from higher product costs, commodity inflation, unfavorable Chinese yuan movements and increased inbound and outbound freight expenses. Costs to secure goods amid supply-chain disruption might also have weighed on margins. We expect adjusted SG&A, as a percentage of sales, to expand 220 basis points to 40.1%, while the adjusted operating margin is projected to contract 20 basis points to 6% in the fiscal second 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.

e.l.f. Beauty, Inc. (ELF - Free Report) currently has an Earnings ESP of +6.10% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for e.l.f. Beauty’s upcoming quarter’s earnings per share is pegged at 59 cents, which implies a 13.2% decrease year over year. The consensus estimate for e.l.f. Beauty’s quarterly revenues is pinned at $469.2 million, which calls for 36.4% growth from the figure reported in the prior-year quarter. ELF delivered a trailing four-quarter earnings surprise of nearly 61.5%, on average.

Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +2.89% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $22.2 billion, which implies almost 5% growth from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Sysco’s upcoming quarter’s EPS is pegged at $1.16, which calls for a 0.9% increase from the year-ago period figure. SYY delivered a trailing four-quarter earnings surprise of nearly 1%, on average.

The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +2.47% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at about $6 billion, indicating a 3.1% decline from the figure reported in the prior-year quarter. 

The consensus estimate for The Kraft Heinz Company’s earnings is pegged at 43 cents per share, implying a decrease of 29.5% from the year-ago quarter. KHC delivered a trailing four-quarter earnings surprise of 9.6%, on average. 

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