Helen of Troy Q2 FY27: Tariff Refunds Drive 34% Adjusted EPS Beat, FY27 Guidance Raised
HELE has more than doubled off its 52-week low of $13.85.
Summary
Helen of Troy beat Q2 adjusted EPS by 34% and raised full-year guidance, driven by $26.9M in tariff refunds and broad Home & Outdoor growth. Debt fell to $672.6M from $893.2M a year ago.
Key Events · Earnings and Guidance · HELE
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Q2 Adjusted EPS Beats by 34%
Adjusted diluted EPS of $0.79 for Q2 FY27 beat the prior-year $0.59 by 34%. GAAP net income was $4.6M vs. a $308.6M loss last year, which included $326.4M in asset impairment charges.
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FY27 Guidance Raised Across the Board
Adjusted diluted EPS outlook raised to $3.60-$4.15 from $3.25-$3.75; adjusted EBITDA raised to $203-$210M; free cash flow raised to $120-$140M.
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Tariff Refunds Boost Gross Margin
Q2 included $26.9M in gross pre-tax tariff refunds recognized as COGS reductions, lifting gross margin to 52.2% from 44.2%. Full-year IEEPA refunds estimated at ~$80.5M with 83-88% reinvestment.
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Balance Sheet Strengthens
Total debt fell to $672.6M from $893.2M a year ago. Net leverage ratio improved to 3.03x, below the prior outlook of ≤3.2x. Cash and equivalents were $22.6M.
Analysis · HELE · Manufacturing
Helen of Troy's second quarter shows a sharp operational turnaround from the prior year's impairment-driven losses. Adjusted diluted EPS of $0.79 beat the prior-year $0.59 by 34%, powered by $26.9 million in tariff refunds that flowed through cost of goods sold. Management raised full-year adjusted EPS guidance to $3.60-$4.15 from $3.25-$3.75, and adjusted EBITDA to $203-$210 million. The balance sheet strengthened meaningfully: total debt fell to $672.6 million from $893.2 million a year ago, and net leverage improved to 3.03x, below the prior outlook of ≤3.2x. Offsetting the positives are $4.0 million in divestiture litigation costs from the HRB Brands indemnification dispute and a $4.4 million EPA settlement. The Home & Outdoor segment drove growth with 9.2% revenue increase, while Beauty & Wellness declined 4.5% on softer hair appliance and prestige hair care demand.
How filings like this one have moved
In the 30 days to Oct 8, 2026, 28.8% of the 1732 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.63%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, HELE was trading at $27.75 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $595.1M. The 52-week trading range was $13.85 to $30.68. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.