EL PASO, Texas (BRAIN) — Osprey and Hydro Flask parent company Helen of Troy second-quarter net sales declined 8.9% year-over-year, prompting its new CEO to say a return to growth won't be swift.
Consolidated net sales for the quarter ending Aug. 31 was $431.8 million, compared with $474.2 million at the same time last year. Home & Outdoor net sales, which Osprey and Hydro Flask fall under, decreased 13.7%, from $241.9 million to $208.7 million.
The drop was primarily driven by lower retail replenishment orders, cancellations of import orders because of higher tariffs in the insulated beverageware category, and a decrease in club channel sales because of higher tariffs.
"I joined Helen of Troy last month with a deep admiration for its global brands, differentiated product solutions, solid financial foundation, and dedicated associates," said CEO G. Scott Uzzell. "While I continue to listen and learn, I am confident in our ability to engineer a great comeback story. We made progress in the second quarter, but there are no quick fixes as we work to get back on a path to growing market share and driving sustainable growth. Moving forward, the consumer will be at the center of everything we do. We will invest in our associates to inspire new innovations that deliver unique solutions designed to win in the marketplace and generate future attractive returns for our shareholders."
Net income loss for the quarter was $308.6 million, compared with net income of $17.0 million at the same time last year. Diluted loss per share was $13.44, compared to diluted earnings per share of $0.74.
While 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, it has now resumed targeted inventory purchases in the short term.
The company said it can reduce the net tariff impact on operating income to less than $20 million, compared to the prior expectation of less than $15 million, based on tariffs currently in place and the expectation that it will increase prices to retailers that become effective in the second half of fiscal 2026.
Helen of Troy estimates full-year fiscal 2026 consolidated net sales revenue in the range of $1.739 billion to $1.780 billion, a decline of 8.8% to 6.7%, compared with the prior fiscal year.
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.
