Why Is HELE Stock Surging Today?

• The company reported adjusted diluted earnings per share of $0.79, versus Fiscal AI’s $0.50 estimate, while revenue rose 2.1% year-over-year to $440.9 million, slightly below the $442.33 million estimate.
• Home & Outdoor sales increased 9.2% to $227.9 million, while Beauty & Wellness sales declined 4.5% to $213 million.
• Helen of Troy narrowed its FY27 consolidated net sales outlook range to $1.768 billion-$1.822 billion, compared with its prior range of $1.759 billion-$1.831 billion.

Shares of Helen of Troy (HELE) surged Thursday after the company reported its second-quarter fiscal 2027 results and raised its full-year outlook.

The company reported adjusted diluted earnings per share (EPS) of $0.79, versus Fiscal AI’s $0.50 estimate, while revenue rose 2.1% year-over-year to $440.9 million, slightly below the $442.33 million estimate.

HELE stock was up about 14% at the time of writing on Thursday.

FY27 Profit And Cash Flow Outlook Raised

Helen of Troy raised its FY27 adjusted diluted EPS outlook to $3.60-$4.15 from $3.25-$3.75. It also increased its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) outlook to $203 million-$210 million from $190 million-$197 million.

The company raised its operating cash flow forecast to $163 million-$179 million from $119 million-$130 million and free cash flow guidance to $120 million-$140 million from $85 million-$100 million.

Helen of Troy narrowed its FY27 consolidated net sales outlook range to $1.768 billion-$1.822 billion, compared with its prior range of $1.759 billion-$1.831 billion.

The company also lowered its year-end net leverage target to no more than 2.7x, down from 3.2x.

CEO G. Scott Uzzell said second-quarter sales were in line with expectations, while adjusted EBITDA and adjusted EPS were better than expected, excluding the net tariff-refund benefit in the quarter.

Uzzell said sales growth was broad-based across Home & Outdoor, Wellness and International, with improving fundamentals across the balance of the portfolio.

He added that Helen of Troy plans to continue making targeted investments in its brands, capabilities and organization, including reinvesting the vast majority of tariff refunds, while allowing a portion to support near-term earnings and liquidity.

Home & Outdoor Leads Sales Growth

The Home & Outdoor segment reported a 9.2% increase in sales to $227.9 million, driven by demand for technical, travel and lifestyle packs, higher international sales, assortment and distribution gains, higher closeout-channel sales and new product launches.

Beauty & Wellness sales declined 4.5% to $213 million, with the company citing softer demand in beauty hair appliances, prestige hair care and water filtration. Growth in heaters, thermometers and nail care partially offset the declines.

Helen of Troy's gross margin increased to 52.2% from 44.2%, while adjusted operating margin rose to 8.6% from 6.2%.

Adjusted EBITDA increased to $49.4 million from $36.2 million, while total short- and long-term debt fell to $672.6 million from $893.2 million a year earlier.

Tariff Refunds Add To Q2 Benefit

Second-quarter results included $26.9 million in gross pre-tax tariff refunds, of which approximately $23 million was reinvested. This resulted in an estimated $4 million net pre-tax benefit and approximately $0.12 of diluted EPS benefit.

For FY27, Helen of Troy expects approximately $80.5 million in tariff refunds and plans to reinvest roughly 83%-88% of those refunds into growth investments.

How Retail Views HELE

Retail Sentiment on Stocktwits for HELE turned ‘Extremely Bullish’  with ‘Extremely High’ message volume in the past 24 hours.

HELE shares have gained over 32% year-to-date.

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