Helen of Troy Ltd. reported that sales in its Home & Outdoor segment, which includes Hydro Flask, Osprey and OXO, rose 9.5 percent year-over-year to $194.9 million in the fiscal 2027 first quarter ended May 31, up from $178.0 million in the prior-year fiscal 2026 Q1 period. The gains were supported by international demand for packs, new product launches and a favorable comparison to the prior year as tariff uncertainty pulled retailer orders from the first quarter of fiscal 2026 and into the fourth quarter of fiscal 2025. 

The segment also reportedly benefited from higher sales from expanded distribution in home and insulated beverageware categories. These factors were partially offset by lower international sales in the home and insulated beverageware categories. 

Home & Outdoor operating income was $8.2 million, or 4.2 percent of segment net sales revenue, in the fiscal first quarter, compared to an operating loss of $213.8 million, or negative 120.1 percent of segment net sales revenue, in the prior-year first quarter. Last year’s Q1 results included $219.1 million of pre-tax asset impairment charges. 

Consolidated Fiscal  First Quarter Summary

  • Consolidated net sales revenue of $402.1 million compared to $371.7 million
  • Gross profit margin of 46.0 percent compared to 47.1 percent
  • Operating margin of 15.0 percent, which includes the favorable margin impact of a gain on the sale of a distribution facility of 13.6 percent, compared to (109.5 percent), which included the unfavorable impact of non-cash asset impairment charges of (111.5 percent)
  • Non-GAAP adjusted operating margin of 4.0 percent compared to 4.3 percent
  • GAAP diluted earnings per share of $1.51, which includes an after-tax gain on the sale of a distribution facility of $1.74, compared to diluted loss per share of $19.65, which included after-tax non-cash asset impairment charges of $18.99
  • Non-GAAP adjusted diluted EPS of 17 cents compared to 41 cents
  • Net cash used by operating activities of $0.6 million compared to net cash provided by operating activities of $58.3 million
  • Non-GAAP adjusted EBITDA margin of 6.3 percent compared to 6.9 percent

Balance Sheet and Cash Flow Summary

  • Cash and cash equivalents totaled $21.7 million, compared to $22.7 million.
  • Accounts receivable turnover was 66.6 days, compared to 69.7 days.
  • Inventory was $467.4 million, including approximately $15 million in incremental tariff costs, compared to $484.1 million.
  • Total short- and long-term debt was $716.1 million, compared to $871.0 million.
  • Net cash used by operating activities for the first three months of the fiscal year was $0.6 million, compared to net cash provided of $58.3 million for the same period last year.

Fiscal 2027 Annual Outlook

  • Consolidated Net Sales: $1.759 billion to $1.831 billion ($1.751 billion to $1.822 billion previously)
    • Home & Outdoor Net Sales: $859 million to $884 million ($854 million to $882 million previously)
    • Beauty & Wellness Net Sales: $900 million to $947 million ($897 million to $940 million previously)
  • Diluted EPS (GAAP): $3.57 to $4.18 (same as prior guidance)
  • Adjusted Diluted EPS (Non-GAAP): $3.25 to $3.75 (same as prior guidance)
  • Net Income (GAAP): $85 million to $100 million ($83 million to $97 million previously)
  • Adjusted EBITDA (Non-GAAP): $190 million to $197 million (same as prior guidance)
  • Operating Cash Flow (GAAP): $119 million to $130 million ($117 million to $128 million previously)
  • Free Cash Flow: $85 million to $100 million (same as prior guidance)

Image courtesy Hydro Flask

See below for expanded SGB Executive coverage of the Osprey and Hydroflask businesses at Helen of Troy:

EXEC: Osprey Paces Robust Growth for Helen of Troy’s Home & Outdoor Segment