EL PASO, Texas (BRAIN) — Helen of Troy, parent company of Osprey and Hydro Flask, reported net sales decreased 10.8% year-over-year in the first quarter with the interim CEO saying tariffs impacted the bottom line.
The Home & Outdoor segment, which Osprey and Hydro Flask sales contribute to, had a 10.3% drop in first-quarter net sales year-over-year. The drop was blamed partly on the cancellation of direct import orders in response to higher tariffs.
Overall net sales for the quarter ending May 31 was $371.7 million, compared with $416.8 million at the same time last year; Home & Outdoor net sales were $178 million, compared with $198.5 million.
Helen of Troy announced in April that it was freezing inventory purchases from China because of tariff increases while reporting fourth-quarter and yearly net sales declines.
"The first quarter was challenging, with tariff-related impacts making up approximately eight percentage points of the 10.8% consolidated revenue decline," said interim CEO Brian L. Grass. "That said, we are encouraged by underlying business improvements we saw in the quarter including U.S. point-of-sale unit growth in eight out of our 11 key brands, growth in our D2C business, Osprey and Curlsmith, and contribution from Olive & June ahead of our expectations."
Grass added that he believes Helen of Troy can reduce the net tariff impact on operating income to less than $15 million based on tariffs currently in place.
Net income loss for the quarter was $450.7 million, compared with net income of $6.2 million at the same time last year. Diluted loss per share was $19.65, compared to diluted earnings per share of $0.26.
Chairman of the Board of Directors Timothy F. Meeker said the search for a permanent CEO has started to replace Noel Geoffroy, who resigned in May.
Helen of Troy's corporate headquarters is in El Paso, Texas, and its stock is traded on the NASDAQ under the HELE symbol. Stock quote on Nasdaq.
