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HELEN OF TROY Suffers -7.92% Stock Drop

HELEN OF TROY recently released its 10-Q report. The company operates a consumer products business across the U.S., Canada, Europe, the Middle East, Africa, Asia Pacific and Latin America, selling home, outdoor, beauty and wellness products through mass merchants, specialty retailers, e-commerce, wholesalers, warehouse clubs and direct-to-consumer channels. Its portfolio includes OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith, Revlon and Olive & June, and the company is headquartered in El Paso, Texas.

In Item 2, management said the quarter was shaped by tariffs, a Southaven facility sale, and the absence of the prior-year impairment charges. Helen of Troy said it completed the sale of its Southaven, Mississippi distribution facility on April 14, 2026 for $82.0 million, net of $3.8 million in costs to sell, and recorded a $54.9 million gain in SG&A in the first quarter of fiscal 2027, with the gain allocated to the Beauty & Wellness segment; the proceeds were used to repay borrowings under its credit facility.

The company said it did not record any asset impairment charges in the first quarter of fiscal 2027, after taking $414.4 million of pre-tax impairment charges in the first quarter of fiscal 2026. Those prior-year charges included $219.1 million in Home & Outdoor, with $120.8 million tied to Hydro Flask and $98.3 million to Osprey, and $195.3 million in Beauty & Wellness, including $103.7 million for Drybar, $36.2 million for Curlsmith, $35.8 million for Health & Wellness and $19.6 million for Revlon.

Tariffs remained a major cost driver. Helen of Troy said it paid $80.5 million of IEEPA tariffs during fiscal 2026, submitted $6.0 million of Phase 1 refund claims in May 2026, and as of May 31, 2026 had concluded that $1.9 million of refunds were probable, recording that amount as a receivable. It said the first-quarter tariff refunds recognized were all in Home & Outdoor, while an additional $3.2 million of Phase 1 claims related to Beauty & Wellness were submitted in June 2026.

The company also said its first-quarter cost of goods sold included $12.2 million of additional pre-tax tariff costs, net of refunds, versus a de minimis impact in the prior-year period. It said strategic price increases implemented in fiscal 2026 were offset by lower unit volumes, and it pointed to weaker consumer confidence, retailer order pauses and cancellations, and slower China demand as factors that hurt fiscal 2026 sales. Following these announcements, the company's shares moved -7.92%, and are now trading at a price of $25.82. Check out the company's full 10-Q submission here.

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