Helen Of Troy (HELE) Quarterly Loss Deepens And Challenges Margin Recovery Narratives

Helen of Troy's Latest Numbers Set a Tough Backdrop

Helen of Troy (HELE) has just posted another tough quarter, with Q2 2026 revenue at US$431.8 million and a basic EPS loss of US$13.44, alongside trailing twelve month revenue of US$1.8 billion and a basic EPS loss of US$28.77. Over recent periods, the company has seen quarterly revenue move between US$371.7 million and US$530.7 million, while basic EPS has swung from profits of around US$2.22 per share to losses of US$19.65 and US$13.44 per share. This sets up a story where sales are holding up but margins and net income remain under pressure. For investors, this earnings season is focused on how management can stabilize profitability and protect margins from further compression.

See our full analysis for Helen of Troy.

With the latest figures on the table, the next step is to see how these margin and earnings trends line up against the most widely held narratives around Helen of Troy and where those stories might need updating.

See what the community is saying about Helen of Troy

Losses Deepen With US$658.8 Million TTM Hit

• Over the last twelve months, Helen of Troy booked a net loss of US$658.8 million on US$1.82b of revenue, compared with earlier periods in 2025 where trailing net income figures were all positive.
• Analysts' consensus view talks about efforts like Project Pegasus and supply chain shifts helping margins, yet the current loss profile contrasts with that, as trailing EPS moved from US$6.41 a year ago to a loss of US$28.77, even while revenue growth over the same period is still positive at 3.4% per year.
  • Consensus highlights a 60 basis point gross margin improvement and aims to improve net margins, while the data shows losses have expanded at about 45.7% per year over five years.
  • The same consensus leans on brand additions and new product launches to support growth, but the trailing 12 month numbers show that profitability, rather than revenue, is currently the pressure point.

Shares Around US$20 With Low 0.3x P/S

• At a share price of US$20.58 and trailing revenue of US$1.82b, Helen of Troy trades on a P/S ratio of about 0.3x, compared with industry and peer averages of around 0.6x, and sits slightly below a DCF fair value of US$20.99.
• What stands out for more cautious investors is that this relatively low P/S and small gap to the DCF fair value sit next to a multi year earnings decline, where losses have worsened at roughly 45.7% a year, and debt is not well covered by operating cash flow.
  • Bears argue that weak cash coverage of debt limits how much comfort you can take from any discount to fair value.
  • They also point to the contrast between the current unprofitable trailing 12 month results and the 29.33 analyst price target that assumes future earnings and margins recover from today's loss making base.

Bears point to the widening losses and debt coverage issues as reasons the current valuation gap may not tell the full story. 🐻 Helen of Troy Bear Case

Quarterly Swing From US$50.9 Million Profit To Heavy Loss

• Looking at individual periods, Q4 2025 showed net income of US$50.9 million, while by Q2 2026 net income swung to a loss of US$308.6 million on US$431.8 million of revenue and basic EPS shifted from a profit of US$2.22 to a loss of US$13.44.
• For investors leaning toward the more optimistic side, consensus commentary about cost savings and higher margin products sits alongside these swings, creating a gap between the idea of improving efficiency and the reality that the last two quarters both showed large losses.
  • Supporters of the bullish case highlight supply chain diversification and SKU prioritization, yet the recent quarters show that earnings so far have not reflected that intended margin benefit.
  • They also look to international expansion and acquired brands as future growth drivers, while the recent financials show that stabilizing profitability is still the immediate task.

Optimists argue these large quarterly losses are part of a reset before cost and brand moves start to show up in the numbers. 🐂 Helen of Troy Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Helen of Troy on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? Take a couple of minutes to test your own view against the data and turn it into a clear narrative: Do it your way.

A great starting point for your Helen of Troy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

Helen of Troy is contending with large recent losses, weaker margins and debt that is not well covered by operating cash flow, despite revenue holding up.

If that mix of widening losses and stressed debt coverage feels uncomfortable, you may want to shift your focus toward companies with stronger financial footing. Check solid balance sheet and fundamentals stocks screener (1941 results) today and compare options that appear better prepared for tough conditions.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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