Helen of Troy Limited (HELE) SEC Filings & Earnings Calls

Tariff escalation risk

“Our cost of goods sold included additional pre-tax tariff costs related to the changes in tariffs described above of $12.6 million and $27.3 million, during the three and six months ended August 31, 2026, respectively, compared to $10.0 million and $12.5 million in the same periods last year, respectively.” · word for word

Securities class action litigation

“On June 2, 2026, the Company and certain of its officers were named as defendants in a purported federal securities class action lawsuit ... The Company believes the allegations asserted in the complaint are without merit and intends to defend them vigorously.” · word for word

Talc litigation liability

“During the three and six months ended August 31, 2026, we accrued $4.0 million and $5.3 million, respectively, for potential settlements and legal fees and paid approximately $1.4 million during fiscal 2027 related to these cases. As of August 31, 2026, we had an estimated liability of approximately $5.4 million.” · word for word

Consumer demand weakness in Beauty

“a decline in Beauty hair appliances and prestige hair care products primarily due to softer consumer demand, including the impact of consumer price sensitivity, continued competition, reduced replenishment orders from retail customers and lower closeout channel sales” · word for word

Beauty & Wellness segment continues to decline, driven by hair appliances and prestige hair care.

“Beauty & Wellness declined 4.5% driven by declines in hair appliances, prestige hair care and water filtration.”

Inflationary product cost pressure from commodities, fuel, freight, and foreign currency.

“Inflationary product cost pressure primarily due to commodities, fuel prices, freight, foreign currency and supply availability.” · word for word

SG&A ratio increased to 46.4% due to reinvestment of tariff refunds and higher personnel, packaging, litigation, and marketing costs.

“Consolidated SG&A ratio increased to 46.4% reflecting the stated intention to reinvest tariff refunds.”

Tariff escalation and uncertainty

“Our cost of goods sold during the first quarter of fiscal 2027 included $12.2 million of additional pre-tax tariff costs, net of the refunds recognized described above, compared to a de minimis impact in the prior year period when tariffs were first introduced and had not cycled through our cost of goods sold.” · word for word

Consumer demand weakness in Beauty segment

“These factors were partially offset by a decline in Beauty hair appliances and prestige hair care products primarily due to softer consumer demand, continued competition and reduced replenishment orders from retail customers.” · word for word

Securities class action lawsuit

“On June 2, 2026, the Company and certain of its officers were named as defendants in a purported federal securities class action lawsuit filed in the United States District Court for the Western District of Texas.” · word for word

Talcum powder litigation indemnification dispute

“During the first quarter of fiscal 2027, we paid approximately $1.0 million in settlements of these cases and accrued an additional $1.3 million for potential settlements and legal fees.” · word for word

EPA compliance costs

“As of February 28, 2026, we accrued an estimated liability of $4.4 million, which represents our best estimate of probable settlement costs related to this matter.”

Tariff impact pressuring gross margin and adjusted operating margin.

“Consolidated gross profit margin decreased 110 basis points to 46.0% primarily reflecting the net unfavorable impact of tariffs” · word for word

Significant decline in operating cash flow from $58.3M to -$0.6M.

“Net cash used by operating activities of $0.6 million compared to net cash provided by operating activities of $58.3 million” · word for word

Adjusted diluted EPS down 58.5% to $0.17, well below prior year.

“Adjusted diluted EPS decreased 58.5% to $0.17” · word for word

Tariff exposure

“We continued to face a challenging macroeconomic and consumer environment during fiscal year 2026 as global tariff policies continued to evolve.” · word for word

Consumer demand weakness

“lower consumer demand and discretionary spending, and resulting reduced orders from retail customers” · word for word

CEO succession risk

“Noel Geoffroy departed as CEO of the Company on May 2, 2025” · word for word

Asset impairment risk

“Operating loss of $782.1 million” · word for word

Extensive risk factor disclosure including tariffs, cybersecurity, supply chain, and macroeconomic conditions.

“Risk factors include geographic concentration of distribution, cyber incidents, dependence on third-party manufacturers in Asia, tariffs, and economic downturn.”

Tariff escalation risk

“Recently imposed tariffs resulted in the pause or cancellation of direct import orders from China by certain of our key retailers, which adversely impacted our net sales revenue during fiscal 2026.” · word for word

Customer concentration risk

“Sales to our top five customers accounted for approximately 50% of our consolidated net sales revenue in fiscal 2026.” · word for word

Supply chain concentration risk

“Finished goods manufactured by vendors in China comprised approximately 57% of finished goods purchased in fiscal 2026.” · word for word

Licensed trademark dependency

“A significant portion of our sales revenue comes from selling products under licensed trademarks, particularly in the Beauty & Wellness segment.” · word for word

Macroeconomic demand sensitivity

“Consumer purchases of discretionary items tend to decline during recessionary periods, when disposable income is lower, and may impact sales of our products.” · word for word

Tariff escalation and supply chain disruption

“Our cost of goods sold during the three and nine months ended November 30, 2025 included $20.8 million and $31.3 million, respectively, of additional pre-tax costs related to the changes in tariffs described above.” · word for word

Sustained consumer demand weakness

“During fiscal 2025 and the first three quarters of fiscal 2026, we experienced reduced replenishment orders from retail customers in line with softer consumer demand and discretionary spending, which adversely impacted our sales, results of operations and cash flows.” · word for word

Goodwill and intangible asset impairment

“During the nine months ended November 30, 2025, we recorded asset impairment charges of $806.7 million ($802.3 million after tax) to reduce our goodwill by $648.6 million and our other intangible assets by $158.1 million.” · word for word

China market disruption and competition

“Sales were also negatively impacted by evolving dynamics in the China market, including a shift toward localized fulfillment models and heightened competition from domestic sellers benefiting from government subsidies.” · word for word

Increased competition in key categories

“During fiscal 2025 and the first three quarters of fiscal 2026, we experienced increased competition within our Beauty & Wellness segment and in the insulated beverageware category, which led to some declines in retail distribution.” · word for word

Reduced revolver capacity may constrain future borrowing, but CFO expects no near-term limitation.

“The Amendment reduces the commitment under the revolving credit facility from $1.0 billion to $750.0 million.” · word for word