Helen of Troy rises 3.9% after fiscal Q2 results and guidance update

What happened

Helen of Troy (HELE) rose 3.9% on October 8, 2026, after fiscal second-quarter results beat expectations and management updated fiscal 2027 guidance. The company reported adjusted diluted EPS of $0.79 versus $0.50 expected, 58.8% above estimates, and said it met its sales outlook while seeing growth in its Home & Outdoor segment, according to Business Wire and Seeking Alpha. Management disclosed gross pre-tax tariff refunds of $26.9 million and described a net pre-tax benefit after reinvestment. For the year, it provided an EPS range of 3.600-4.150 and revenue guidance of $1.8 billion.

How big was the move

The stock opened 22.6% above the previous close and closed at $26.55, a rise of 3.9% on the day. Trading volume was 4.6 times its 20-day average and the move measured 1.4 times a typical daily move for this stock. The S&P 500 fell 0.5% on the day while the Consumer Defensive sector median rose 1.7%; Helen of Troy’s performance was 2.2 percentage points better than the sector median. The stock has a beta of 1.19, indicating it tends to move more than the market.

The technical picture

Technically, the stock sat 3.3% below its 20-day moving average and 5.9% below its 50-day moving average, but stood 14.3% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock had spent 117 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) was 44, in the neutral range between 30 and 70. Over one month the stock fell 2.8% and over three months it rose 0.8%; over one year the stock fell 1.7%, trailing the S&P 500 by 17.4 percentage points.

Fundamentals and valuation

For the four quarters through August 31, 2026, Helen of Troy reported revenue of $1.83 billion, which grew 0.3% from a year earlier. Diluted earnings per share for the period were $-4.36. Gross margin was 47.4% compared with 47.3% a year earlier, while operating margin was 5.6% versus 35.5% a year earlier. Free-cash-flow margin was 7.7% and return on invested capital was 14.5%.

The company showed net debt of 10.1 times EBITDA and its share count over one year increased by 5.2%. On valuation, the stock traded at 7.4 times expected earnings on a price to forward earnings basis and had a free-cash-flow yield of 22.6%. Those metrics suggest the market is valuing Helen of Troy with an eye to materially improved free-cash-flow generation but also pricing in heavy leverage.

Earnings and analyst expectations

Earnings were the direct cause of the move, with the October 8, 2026, report showing adjusted diluted EPS of $0.79 against $0.50 expected, 58.8% above estimates. That marked three consecutive quarters beating estimates and an average surprise over the last four reports of 100.0% above estimates. Typical two-day reactions after recent reports had seen the stock fell 6.0%.

Analysts’ consensus price target was $26.50, 0.2% below the closing price, based on 11 analysts; 27% of those ratings were Buy and the consensus rating was Hold. The next scheduled report was set for January 14, 2027.

What to watch

• January 14, 2027: next scheduled earnings report.
• Fiscal 2027 guidance: EPS range of 3.600-4.150 and revenue guidance of $1.8 billion as provided at the October 8, 2026, report.
• Cash flow and tariff refund realization: gross pre-tax tariff refunds of $26.9 million with a net pre-tax benefit after reinvestment as disclosed at the report.
• Share count changes: share count increased by 5.2% over one year and may affect per-share metrics.
• Balance sheet leverage: net debt of 10.1 times EBITDA reported for the four quarters through August 31, 2026.