The company is navigating a complex landscape of evolving global tariff policies and macroeconomic uncertainties, prompting it to withhold an outlook for fiscal 2026. In response, a strategic shift is underway to reduce production dependency on China, aiming to cut the cost of goods sold exposed to Chinese tariffs to less than 20% by the end of fiscal 2026.
Efforts are being intensified to diversify manufacturing to regions with potentially lower tariffs and costs. The company also plans to source products from multiple regions when feasible and cost-effective. These moves are part of broader mitigation strategies that include negotiating cost reductions with suppliers and considering price increases to customers.
The pervasive uncertainty has also led the company to take cost-cutting measures to maintain financial health and cash flow. These include suspending non-critical projects, cutting marketing and new product development expenses, reducing personnel costs, and freezing most new inventory purchases from China, except for key ongoing projects.
By implementing these steps, the company aims to offset 70% to 80% of the potential tariff impacts for fiscal 2026. However, it remains cautious about the unpredictable effects on inflation, consumer confidence, and the broader economy, which could further complicate planning and execution in the near future.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Helen Of Troy Ltd (HELE, Financial) is $71.00 with a high estimate of $105.00 and a low estimate of $38.00. The average target implies an upside of 108.09% from the current price of $34.12. More detailed estimate data can be found on the Helen Of Troy Ltd (HELE) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Helen Of Troy Ltd's (HELE, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Helen Of Troy Ltd (HELE, Financial) in one year is $109.10, suggesting a upside of 219.75% from the current price of $34.12. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Helen Of Troy Ltd (HELE) Summary page.
