Helen of Troy, Ltd.’s Home & Outdoor segment saw a modest decline in the fiscal fourth quarter ended February 28, but company management on an analyst call said Hydro Flask topped expectations with strong response to new launches and Osprey’s sales grew despite a challenging backpack category.
OXO, Helen of Troy’s kitchen and housewares brand and the third brand in the Home & Outdoor segment, also exceeded expectations.
Sales in the Home & Outdoor segment in the quarter slid 1.5 percent, to $216.5 million.
In an early morning earnings release, Helen of Troy said Hydro Flask’s sales were negatively impacted by “continued competition, softer consumer demand, lower replenishment orders, and the unfavorable comparative impact of seasonal and holiday retail placement in the prior year period in the insulated beverageware category.”
OXO was impacted by a decrease in online channel sales in the home category, primarily due to difficult comparisons as retailers pulled forward orders in the year-ago fourth quarter in response to tariff uncertainty and anticipated supply disruption.
Helen of Troy said these factors were partially offset by “strong demand” for Osprey’s technical, travel and lifestyle packs, incremental sales from new product launches in the insulated beverageware category for Hydro Flask, and higher closeout sales.
On the call, Helen of Troy’s CFO Brian Grass said, “OXO and Hydro Flask were ahead of plan, and Osprey contributed solid year-over-year growth.”
He said Hydro Flask benefited from the success of recent product launches and saw strength in the closeout channel as the brand improved its inventory composition.
Osprey’s growth was primarily driven by the e-commerce channel, the backpack brand’s continuing stream of new products and expansion into adjacencies, and the clearance of end-of-season goods through the outdoor channel.
Scott Azel, Helen of Troy’s CEO, on the call said the company’s Home & Outdoor business “held steady” while its Beauty & Wellness segment, which includes the Drybar, Hot Tools, Curlsmith and the Revlon hair appliances range, “felt the pressure.”
Azel highlighted a number of innovations across brands to drive growth.
“In Home & Outdoor, we are expanding brand reach by entering product lines where our brands are resonating with consumers and have a clear right to win,” said Azel.
At Hydro Flask, in response to strong consumer demand for a “wider variety of use cases,” the brand extended its “successful” Micro Hydro franchise with two additional sizes, 300ml and 400ml. Hydro Flask also recently launched new carryout soft coolers and totes “redesigned for improved comfort, performance, and longevity,” according to Azel.
The CEO added, “Hydro Flask’s legacy continues to be recognized by the industry, with the Wide Mouth awarded Gear Junkies’ overall pick for Best Insulated Water Bottle of 2026.”
He said OXO is similarly expected to benefit from expanding into adjacent categories in food storage and feeding in the second half of the year.
Osprey, according to Azel, “continues to augment its technical pack offerings, providing outdoor enthusiasts with new pack solutions that excel in hiking, backpacking, and travel environments.”
In the Q&A session, Azel said the Home & Outdoor segment is “seeing very positive trends almost across the board.
Asked about the performance of Osprey at retail, given that its growth in the latest quarter was driven by e-commerce, Azel said, “We are excited about what we are beginning to see, with respect to Osprey in particular.”
He said the broader backpack category “is generally trending down, but Osprey is generally trending up, taking share, and performing well in that category, and we continue to expand into adjacent categories. Overall, as a company, while we are not yet where we want to be across all brands and categories with respect to POS, we are trending largely in the right direction across the majority of the brands in their respective categories, which we see as a sign of progress.”
Home & Outdoor operating income declined 48.3 percent in the fiscal fourth quarter to $16.7 million, or 7.7 percent of segment revenue, from $32.3 million, or 14.7 percent, a year ago. The latest quarter included $3.9 million of asset impairment charges.
The remaining 520 basis-point decrease in segment operating margin was primarily due to less favorable inventory obsolescence year-over-year, an increase in annual incentive compensation expense year-over-year, a less favorable channel mix, higher retail trade and promotional expense, the net unfavorable impact of higher tariffs on gross profit margin and unfavorable operating leverage.
Helen of Troy said these factors were partially offset by lower commodity and product costs and the favorable comparative impact of restructuring charges of $3.1 million in the prior year period. Adjusted operating income decreased 42.5 percent to $22.6 million, or 10.4 percent of sales, compared to $39.3 million, or 17.9 percent, in the prior year.
On a reported basis, the operating loss for the Home & Outdoor segment in the year was $269.7 million against an operating profit of $119.6 million in fiscal 2025. On an adjusted basis, earnings were $78.8 million, down from $141.9 million a year ago.
