Adjusted earnings of 79 cents a share included about 12 cents from tariff refunds. The higher full-year range now builds in 30 to 45 cents of refund benefit, roughly the size of the increase.
Helen of Troy's results drew a rush of buyers at the open. By early afternoon most of the gain was gone.
The consumer products company reported net sales of $440.9 million for the quarter ended Aug 31, 2026, up 2.1% and slightly below the roughly $442.3 million analysts expected. Adjusted earnings were 79 cents a share, up from 59 cents a year earlier and well above the 50 cents expected. On a GAAP basis the company earned 19 cents a share, against a loss of $13.44 a year earlier that included large impairment charges.
The stock opened at $31.33, up about 23% from Wednesday's close near $25.55, and traded at $27.13 in early afternoon, up about 6%. About 73% of the opening gain was gone.
The refunds
The quarter included $26.9 million of gross tariff refunds before tax. Helen of Troy reinvested about $23 million of that in the quarter, leaving a net pretax benefit of about $4 million, which the company estimates added about 12 cents to diluted earnings per share. Excluding that benefit, adjusted earnings would have been about 67 cents, still up about 14% from a year earlier and above the estimate.
Chief Executive Scott Uzzell said adjusted Ebitda and earnings per share "were better than expected, without including the net tariff refund benefit in the quarter."
Gross margin widened to 52.2% from 44.2%, which the company attributed to refunds, lower promotional spending and operating leverage.
The outlook
The midpoint of the adjusted earnings range rose 37.5 cents, to $3.875 from $3.50. The new range includes an after-tax benefit of about 30 to 45 cents from tariff refunds net of reinvestment. The midpoint of that refund benefit is also 37.5 cents. The company now expects about $80.5 million of total refunds for the year and plans to reinvest 83% to 88% of them.
The sales range was narrowed rather than raised, with the top lowered by $8 million.
The segments
Home and Outdoor sales rose 9.2% to $227.9 million, with growth across its brands. Beauty and Wellness fell 4.5% to $213.0 million, which the company tied to softer demand and competition in hair appliances, prestige hair care and water filtration. Total debt fell to $672.6 million from $893.2 million a year earlier.
Two views
One reading is that the underlying business has turned. Earnings beat even without refunds, free cash flow guidance rose by about 40%, debt is falling and Home and Outdoor is growing.
Another reading is that the full-year raise is roughly the refund benefit, sales guidance did not rise, the segment behind nearly half of sales is shrinking, and the retreat from the open may reflect that arithmetic.
The second half
Beauty and Wellness sales and gross margin excluding refunds in the fiscal third quarter will show how much of the improvement is operational. The pace of refund reinvestment, and whether it produces sales growth, will determine whether the refunds leave anything lasting.