- Helen of Troy Limited reports a 0.7% decline in consolidated net sales for Q4 of fiscal 2025.
- GAAP diluted EPS increased by 24.0% to $2.22, while adjusted diluted EPS declined by 4.9% to $2.33.
- The company emphasizes Project Pegasus savings and acquisition of Olive & June as key achievements.
Helen of Troy Limited (HELE, Financial), a global leader in consumer products, announced its fourth-quarter fiscal 2025 results, reflecting a mixed performance amid industry challenges. The company's consolidated net sales were $485.9 million, marking a slight decline of 0.7% compared to $489.2 million in the same quarter of the previous year.
Despite the small downturn in sales, the company reported a significant growth in its GAAP diluted earnings per share (EPS), which climbed by 24.0% to reach $2.22, from $1.79 in the previous period. However, the non-GAAP adjusted diluted EPS saw a decline of 4.9%, settling at $2.33, compared to $2.45 year-over-year.
Helen of Troy's CEO, Ms. Noel M. Geoffroy, highlighted the company's achievements in fiscal 2025, including the successful implementation of the Project Pegasus cost-saving initiatives and the strategic acquisition of Olive & June, which contributed $23.0 million to net sales. The company’s Wellness, OXO, Osprey, and International categories also showed strong performance.
Operational challenges were evident as the company's operating margin slipped to 0.4% due to significant non-cash asset impairment charges of $51.5 million. Adjusted operating margin also decreased from 17.0% to 15.4%. Despite these challenges, net income rose to $50.9 million from $42.7 million, buoyed by a $64.6 million transitional income tax benefit.
Looking forward to fiscal 2026, Helen of Troy Limited faces uncertainties due to evolving global tariff policies. The company is implementing strategies to navigate these challenges, including diversifying its production outside of China and considering price adjustments.
As the company continues to reinforce its brand health, the focus remains on mitigating risks and maximizing cash flows in response to anticipated global economic volatility.
