Helen of Troy Limited reported significant financial challenges in its latest 10-Q filing for the third quarter and nine months ended November 30, 2025. The company recorded a net loss of $84.1 million for the quarter, compared to a net income of $49.6 million in the same period last year. For the nine-month period, the net loss deepened to $843.4 million, a stark contrast to the $72.8 million net income reported in the prior year. The diluted loss per share was $3.65 for the quarter and $36.70 for the nine months, reflecting substantial declines in profitability.
Total sales revenue for the third quarter decreased by 3.4% to $512.8 million, down from $530.7 million a year earlier. The nine-month revenue also fell by 7.4% to $1.316 billion, compared to $1.422 billion in the previous year. The decline was attributed to a combination of factors, including reduced consumer demand, increased competition, and the impact of tariffs on imported goods. The company also faced challenges in its Beauty & Wellness segment, which saw a decline in sales due to lower replenishment orders and a shift in market dynamics, particularly in China.
A significant factor contributing to the financial downturn was the recognition of asset impairment charges totaling $65.9 million for the quarter and $806.7 million for the nine months. These impairments were primarily related to goodwill and intangible assets across both the Home & Outdoor and Beauty & Wellness segments. The company noted that these impairments were driven by a sustained decline in stock price and downward revisions to internal forecasts, reflecting broader macroeconomic conditions and tariff impacts.
Strategically, Helen of Troy completed the acquisition of Olive & June, a nail care brand, in December 2024, which contributed $37.7 million to revenue in the third quarter. However, the integration of this acquisition has not offset the overall revenue declines. The company has also been implementing a restructuring plan, Project Pegasus, aimed at improving operational efficiency and reducing costs, which is expected to yield annualized pre-tax operating profit improvements of approximately $75 million to $85 million by the end of fiscal 2027.
Looking ahead, Helen of Troy anticipates continued challenges due to evolving tariff policies, macroeconomic pressures, and changing consumer behaviors. The company is focused on mitigating these risks through strategic initiatives, including diversifying its supply chain and enhancing its online sales capabilities. However, the outlook remains uncertain as the company navigates these complex market dynamics.
About HELEN OF TROY LTD
Helen of Troy Limited is a global consumer products company offering a diversified portfolio of brands in home, outdoor, beauty, and wellness segments. It develops, markets, and sells innovative products such as kitchenware, hydration solutions, personal care appliances, and health devices primarily through retail, e-commerce, and direct channels. The company emphasizes brand recognition, product innovation, supply chain management, and sustainability to maintain competitive market positions.
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