Jul. 8 at 10:59 AM
$HELE Helen of Troy reaffirms FY27 adjusted EPS view
$3.25-
$3.75, consensus
$3.49
Raises net sales view to
$1.759B-
$1.831B, consensus
$1.79B. Sees adjusted EBITDA
$190M-
$1970M; FCF
$85M-
$100M. The company said, "The Company's outlook reflects management's view of continued inflationary pressures, softness in discretionary categories, conservative retailer inventory management and an increasingly competitive and promotional landscape. Tariff rates in place as of June 2026 are assumed to remain in effect for the balance of fiscal 2027. The Company's outlook includes the benefit from Phase 1 tariff refunds of approximately
$9.2M, but excludes any potential benefit from future refund phases due to the uncertainty surrounding the timing and collectability of those refunds.
Heightened geopolitical and supply-chain risks, including ongoing tensions in the Middle East, have begun to drive volatility in energy and commodity markets that could continue, increasing uncertainty around input costs and supply chain continuity across key regions and transportation routes. The Company's outlook now includes the expectation of higher product costs driven by increases in commodity inputs and pressure from unfavorable Chinese Yuan fluctuations, increased inbound and outbound freight expense, and higher costs to secure goods to avoid supply disruption.
An increase in growth investments of 40 basis points, prioritizing high return marketing and innovation initiatives. In line with the average of the three prior seasons, which is well below pre-Covid historical averages. Interest expense in the range of
$45.5M to
$47.5M with cash flow prioritized for debt reduction, and an expected net leverage ratio(1)(9), as defined in the Company's credit agreement, of approximately 3.2x or lower by the end of fiscal 2027. GAAP effective tax rate of 27.2% to 29.7%; adjusted effective tax rate of 24.0% to 26.0%.
Continued working capital efficiency during fiscal 2027, with an emphasis on further inventory reduction. The Company expects capital expenditures of
$30M to
$34M with an emphasis on product innovation and supply chain diversification. June 2026 foreign currency exchange rates remain constant for the remainder of the fiscal year."
