Helen Of Troy Expects To Lower Cost Of Goods Subject To China Tariff: CFO Says Company Implemented Majority Of Planned Price Increases

The company said it now expects full-year fiscal 2026 consolidated net sales revenue in the range of $1.74 billion to $1.78 billion and adjusted earnings per share in the range of $3.75 to $4.25.

Helen of Troy (HELE) Assistant Chief Financial Officer Tracy Schuerman said on Thursday that the company now expects to lower its cost of goods sold, subject to the China tariff, to between 25% and 30% by the end of fiscal 2026, as compared to the previous expectation of below 25%.

“While this is slightly higher than we originally targeted, we believe we are making the right choices to mitigate supply risk, ensure product quality, secure favorable costs, and navigate the business disruption that has emerged,” Schuerman said during a post-earnings call.

“Year to date, we have experienced an approximate $10 million impact from tariffs on our cost of goods sold, and we expect a reduced negative effect in the latter half of the year, amounting to less than $9 million as we benefit from the price increases,” she added.

Shares of Helen of Troy were down nearly 23% in afternoon trading. Retail sentiment dipped to ‘extremely bearish’ from ‘bullish’ territory a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

“We have now implemented the majority of our planned price increases as of the end of September. However, there are some isolated price increases that are still pending,” Chief Financial Officer Brian Grass said.

Grass noted that the domestic market remained under pressure due to the impact of tariffs on direct import orders, cautious consumer spending, and lower replenishment from retail partners as they manage inventory levels with a cautious view of the consumer environment. 

The company said it now expects full-year fiscal 2026 consolidated net sales revenue in the range of $1.74 billion to $1.78 billion and adjusted earnings per share (EPS) in the range of $3.75 to $4.25. 

Helen of Troy’s second-quarter net sales came in at $431.8 million, compared with Wall Street expectations of $417.7 million, according to data from Fiscal AI. Its adjusted EPS of $0.59 topped estimates of $0.53.

Shares of Helen of Troy have declined nearly 71% in the last 12 months.

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