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Helen of Troy Limited HELE is likely to register both top and bottom-line declines when it reports fourth-quarter fiscal 2025 earnings on April 24. The Zacks Consensus Estimate for quarterly revenues is pegged at $481.9 million, implying a 1.5% decrease from the prior-year quarter’s reported figure. The consensus mark for fiscal 2025 top line is pegged at $1.9 billion, which indicates a decline of 5.1% from the year-ago level.
The Zacks Consensus Estimate for quarterly earnings has moved down by a penny in the past seven days to $2.34 per share, indicating a 4.5% decline from the figure reported in the year-ago quarter. The consensus mark for fiscal 2025 earnings is pegged at $7.20 per share, implying a 19.2% decrease from the prior year’s reported figure.
HELE delivered a trailing four-quarter negative earnings surprise of 4.3%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
Helen of Troy Limited Price, Consensus and EPS Surprise
Helen of Troy Limited price-consensus-eps-surprise-chart | Helen of Troy Limited Quote
Factors Likely to Influence HELE’s Upcoming Results
Helen of Troy has been navigating a challenging macroeconomic environment characterized by reduced consumer and retailer demand. Consumers are facing financial constraints and prioritizing essential purchases over discretionary items. This has been impacting the company’s sales. Our model expects a 2.3% drop in organic volumes for the fiscal fourth quarter.
Helen of Troy’s Wellness segment is under pressure due to an unusually mild global illness season, with U.S. illness incidence at an eight-year low through December. This shift affected net sales by approximately $10 million in the fiscal third quarter and is expected to have hurt fiscal fourth-quarter sales by $15-$20 million. As a result, overall category performance is likely to have been under pressure in the to-be-reported quarter.
Helen of Troy has also been grappling with rising SG&A expenses. In the third quarter, the rise in the consolidated SG&A ratio was mainly due to elevated marketing expenses and unfavorable operating leverage. The persistence of any of these factors is a concern. Our model expects a 150-basis point expansion in adjusted SG&A (as a percentage of sales) to 33.8% for fiscal 2025.
Yet, the strength of Helen of Troy’s Leadership Brands continues to be a key pillar of support amid broader challenges. The company’s strategic focus on core operational excellence and portfolio refinement has helped stabilize performance. Its data-driven approach has been enhancing brand fundamentals, while international expansion and distribution optimization continue to drive reach and efficiency. Moreover, its global restructuring initiative, Project Pegasus, has been generating cost savings. These factors are likely to have offered some respite in the to-be-reported quarter’s performance.