Helen of Troy (HELE) Fiscal Q2 Earnings: Sales Up 2%, Outlook Raised With Tariff Refunds

Helen of Troy reported fiscal second-quarter 2027 results on October 8 for the three months ended August 31. The release shows consolidated net sales of $440.9 million, up 2.1% from $431.8 million, with growth across Home & Outdoor, Wellness and international.

Profit recovers#

GAAP diluted EPS was $0.19, compared with a loss of $13.44 a year earlier that included $12.77 of after-tax impairment charges. Adjusted diluted EPS was $0.79 versus $0.59. Gross margin rose to 52.2% from 44.2%, and adjusted operating margin to 8.6% from 6.2%. Operating cash flow was $57.1 million versus an outflow a year earlier. The quarter included $26.9 million of gross tariff refunds, of which about $23 million was reinvested, for a net benefit of roughly $4.0 million, or about $0.12 per share.

Outlook#

The company narrowed fiscal 2027 sales guidance to $1.768 billion to $1.822 billion and raised adjusted EPS to $3.60 to $4.15, adjusted EBITDA to $203 million to $210 million, and free cash flow to $120 million to $140 million. The outlook includes about $80.5 million of expected tariff refunds across three phases, with 83% to 88% to be reinvested in brands, organization and inventory, leaving a net pre-tax benefit of $10 million to $14 million. It assumes tariff rates in place as of September 2026 persist and notes continued softness in discretionary categories.

What to compare next#

For readers following HELE, the refunds are one-time and largely reinvested, so the underlying improvement is the gross margin and the return to positive operating cash flow. The sales range implies little growth for the year; the question is whether reinvestment produces demand in fiscal 2028.

Published October 21, 2026. Informational reporting, not investment advice. Figures come from the company's own release unless stated; forward-looking guidance is management's current forecast and can change.