Helen of Troy reports 10.8% sales drop for Q1 FY26 amidst leadership uncertainty

USA – Helen of Troy, a global consumer products company, has reported a 10.8% decline in consolidated net sales for the first quarter of fiscal 2026, with revenue falling from USD 416.8 million in the same quarter last year to USD 371.7 million for the three months ended May 31, 2025. 

According to the company, this downturn is attributed mainly to tariff disruptions, weaker demand in key segments and ongoing leadership uncertainty with the company operating under an interim CEO.

Beauty & Wellness segment recorded net sales of USD 193.7 million in Q1 2026, marking an 11.3% decline compared to USD 218.4 million in the same period last year. 

According to the company, the drop was largely attributed to a USD 50.3 million, or 23.0%, decline in organic business, primarily driven by reduced international thermometry sales. 

This downturn stemmed from shifting market dynamics in China, including a move away from cross-border e-commerce to localized fulfilment models, intensified competition from government-supported domestic brands, and a milder illness season across Asia.

According to the company’s officials, the decline in organic business was partially offset by a USD 26.8 million contribution, equivalent to 12.3% of segment net sales revenue, from the recent acquisition of Olive & June.

The sharp drop in revenue, along with a USD 450.7 million net loss driven by significant non-cash impairment charges, highlighted the operational challenges the company is facing amidst elevated costs and stiff competition. 

Timothy F. Meeker, Chairman of the Board of Directors at Helen of Troy, stated, “We continue to prioritize selecting a CEO who has demonstrated success in leading a highly diversified global organization, can boost our brands and inspire top talent to capitalize on Helen of Troy’s growth opportunities, and who closely aligns with our strong belief that Helen of Troy has tremendous potential.”

“As we continue our search, we have confidence in our interim CEO Brian Grass, his dedication to Helen of Troy and his commitment to improving our company’s performance.”

Despite these challenges, Helen of Troy remains focused on enhancing operational efficiency, innovation, and growth initiatives, projecting second-quarter revenues between USD 408 million and USD 432 million and adjusted earnings per share of USD 0.45 to USD 0.60. 

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