Helen of Troy Q3 Earnings on Deck: Key Factors You Should Understand

Helen of Troy Limited (HELE) is likely to register a decline in both top and bottom lines when it reports third-quarter fiscal 2026 earnings on Jan. 8. The Zacks Consensus Estimate for quarterly revenues is pegged at $505.4 million, implying a 4.8% decrease from the prior-year quarter’s reported figure.

The consensus estimate for HELE’s quarterly earnings has moved down 4 cents in the past 30 days to $1.75 per share, indicating a 36% decline from the figure reported in the year-ago quarter. The company delivered a trailing four-quarter negative earnings surprise of almost 11%, on average.

Helen of Troy Limited Price, Consensus and EPS Surprise

Helen of Troy Limited price-consensus-eps-surprise-chart | Helen of Troy Limited Quote

Things to Know About HELE’s Q3 Earnings

Helen of Troy has been facing pressure as consumer spending softness has been persisting across discretionary categories. Demand has remained weak as consumers have been trading down and prioritizing essential purchases, which has been limiting unit volumes. Retailers have been maintaining cautious inventory positions, leading to lower replenishment orders. In addition, tariff-related pullbacks in direct import orders have continued to disrupt sales patterns, weighing on overall reported revenues. Our model expects a 12.5% drop in organic volumes for the fiscal third quarter.

Helen of Troy has also been grappling with rising SG&A expenses. In the fiscal second quarter, the rise in the consolidated SG&A ratio was mainly due to increased outbound freight costs, elevated share-based compensation expense and unfavorable operating leverage. The persistence of any of these factors is a concern. We expect a 180-basis-point expansion in adjusted SG&A (as a percentage of sales) to 34.1% in the fiscal third quarter.

Apart from this, tariff-related product costs have continued to pressure the cost of goods sold, while elevated operating and logistics expenses have been weighing on margins. In addition, growth-related investments and unfavorable operating leverage stemming from lower revenue levels are likely to have contributed to pressure on adjusted EPS during the quarter.

At the same time, the strength of the company’s Leadership Brands has remained a key support amid broader challenges. HELE’s focus on operational discipline and portfolio optimization has been helping stabilize performance. Its data-driven execution has been reinforcing brand fundamentals, while international distribution optimization has been improving efficiency. In addition, the global restructuring initiative, Project Pegasus, has been delivering cost savings. These factors are likely to have offered some respite in the to-be-reported quarter.

Earnings Whispers for HELE Stock

Our proven model does not conclusively predict an earnings beat for Helen of Troy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Helen of Troy currently has a Zacks Rank #3 and an Earnings ESP of -6.57%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Some Stocks With a Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

The Estee Lauder Companies Inc. (EL) currently has an Earnings ESP of +3.26% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for Estee Lauder’s upcoming quarter’s revenues is pegged at $4.23 billion, which indicates an increase of 5.5% from the prior-year quarter. The Zacks Consensus Estimate for quarterly earnings per share is pegged at 82 cents, implying a 32.3% increase from the year-ago period. EL delivered a trailing four-quarter earnings surprise of 82.6%, on average.

The Hershey Company (HSY) currently has an Earnings ESP of +2.01% and a Zacks Rank of 3. The consensus estimate for Hershey’s quarterly revenues is pinned at $2.98 billion, which calls for 3.3% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $1.40, which implies a 48% decrease year over year. HSY delivered a trailing four-quarter earnings surprise of nearly 15%, on average.

BJ's Wholesale Club Holdings, Inc. (BJ) currently has an Earnings ESP of +0.84% and a Zacks Rank of 3. The Zacks Consensus Estimate for BJ's Wholesale Club’s upcoming quarter’s revenues is pegged at $5.53 billion, which implies a 4.8% increase from the prior-year quarter.

The Zacks Consensus Estimate for BJ's Wholesale Club’s quarterly earnings per share is pegged at 92 cents, indicating a 1.1% fall from the year-ago period figure. BJ delivered a trailing four-quarter earnings surprise of 10.3%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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