Helen of Troy recently released its latest 10-Q report. The company sells consumer products across Home & Outdoor and Beauty & Wellness, with brands including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith, Revlon and Olive & June. Its business spans kitchenware, insulated drinkware, packs and bags, hair appliances and styling products, grooming tools, and home health and wellness products, sold through retailers and directly to consumers in North America, Europe, the Middle East, Africa, Asia Pacific and Latin America.
In Item 2, management said there were no material changes to the key financial measures discussed in the company’s Form 10-K. The company said it completed the sale of its Southaven, Mississippi distribution facility on April 14, 2026 for $82.0 million, less $3.8 million of costs to sell, and recorded a $54.9 million gain in SG&A in the first quarter of fiscal 2027; the gain was recognized in the Beauty & Wellness segment, and the proceeds were used to repay borrowings under its credit facility.
Helen of Troy said it did not record any asset impairment charges in the first six months of fiscal 2027, after taking heavy impairment charges in fiscal 2026 tied to a sustained decline in its stock price. In the three months ended August 31, 2025, it recorded $326.4 million of pre-tax impairment charges, including $85.5 million in Home & Outdoor and $240.9 million in Beauty & Wellness; for the six months ended August 31, 2025, the total was $740.8 million, including $304.6 million in Home & Outdoor and $436.1 million in Beauty & Wellness.
Tariffs were a major focus of the MD&A. Helen of Troy said it paid $80.5 million in IEEPA tariffs during fiscal 2026 and fiscal 2027, and by August 31, 2026 it had collected all Phase 1 refunds and considered substantially all of its Phase 2 claims probable of recovery. That led to reductions to cost of goods sold of $26.9 million in the three months ended August 31, 2026 and $28.7 million in the six months ended August 31, 2026. The company said it had a $4.3 million tariff refund receivable in prepaids and other current assets and a $0.8 million inventory reduction tied to tariff refunds at quarter-end, and it collected $25.3 million in tariff refunds during the six months.
The company also quantified the continuing tariff burden in its cost of goods sold: additional pre-tax tariff costs were $12.6 million in the three months ended August 31, 2026 and $27.3 million in the six months ended August 31, 2026, compared with $10.0 million and $12.5 million in the same periods a year earlier. Helen of Troy said its products imported from China, Vietnam, Thailand and other countries are now subject to Section 301 tariffs, while imports from Mexico remain duty-free under USMCA. It also said its liquid hair styling products, treatments and conditioners sold in Canada are subject to a 50% Canadian retaliatory tariff.
Management said price increases implemented in fiscal 2026 helped offset tariff pressure, but that the benefit to fiscal 2027 net sales was being offset by lower unit volumes. It also said first-half fiscal 2026 sales were hurt by retailer order pullbacks, tariff-related order pauses and weaker consumer demand. Today the company's shares have moved 0.91% to a price of $25.55. For more information, read the company's full 10-Q submission here.
