Helen of Troy Q1 Earnings Coming Up: What Investors Need to Know

Helen of Troy Limited HELE is likely to register a decline in its top and bottom lines when it reports first-quarter fiscal 2026 earnings on July 10. The Zacks Consensus Estimate for quarterly revenues is pegged at $399.3 million, implying a 4.2% decrease from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for HELE’s quarterly earnings has remained unchanged in the past 30 days at 91 cents per share, indicating an 8.1% decline from the figure reported in the year-ago quarter. The company delivered a trailing four-quarter negative earnings surprise of almost 6%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Helen of Troy Limited Price and EPS Surprise

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

Things to Know About HELE’s Q1 Earnings

Helen of Troy is navigating a challenging macroeconomic landscape characterized by softening consumer demand, tighter retailer inventory levels and persistent inflationary pressures. As financially strained consumers prioritize essential items, discretionary spending continues to decline. At the same time, intensified market competition and conservative retail ordering are putting additional pressure on the company’s performance.

Helen of Troy is also contending with rising SG&A expenses, largely due to increased investments in marketing. Entering fiscal 2026, the company faces heightened volatility in its operating environment, caused by rapidly shifting global trade policies, inflation and changing consumer behavior. Daily fluctuations in trade dynamics, along with broader economic risks — such as weakening consumer confidence, employment uncertainties and inflationary cost pressures — add to the unpredictability.

In its last earnings call, management highlighted that Helen of Troy anticipates a weaker-than-usual first-quarter fiscal 2026 due to multiple headwinds. The first quarter, historically the lowest revenue quarter caused by portfolio seasonality, is expected to have faced further contraction as retailer ordering patterns evolve and become more conservative. In addition, the company is seeing an unfavorable impact from paused direct import shipments from China, as retailers react to elevated tariff levels. Compounding this pressure, international revenues are expected to have declined, primarily due to weaker sales in China amid ongoing trade tensions. These factors collectively point to a challenging performance for the to-be-reported quarter.

Earnings Whispers for HELE Stock

Our proven model does not 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Helen of Troy currently carries a Zacks Rank #5 (Strong Sell) and has an Earnings ESP of 0.00%.

Some Stocks With the 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 +66.84% and a Zacks Rank of 1. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings per share (EPS) is pegged at 5 cents, which implies a 92.2% decrease year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for The Estee Lauder Companies’ quarterly revenues is pegged at $3.38 billion, which indicates a 12.7% decrease from the figure reported in the prior-year quarter. EL delivered a trailing four-quarter earnings surprise of 107.4%, on average.

The Hershey Company HSY currently has an Earnings ESP of +11.13% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports second-quarter fiscal 2025 results. The consensus mark for Hershey’s quarterly revenues is pegged at $2.5 billion, which indicates an increase of 21.4% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Hershey’s quarterly EPS is pegged at $1.01, indicating a 20.5% decline from the year-ago period. HSY delivered a trailing four-quarter earnings surprise of 0.6%, on average.

Mondelez International, Inc. MDLZ currently has an Earnings ESP of +4.04% and a Zacks Rank #3. The company is likely to register top-line growth when it reports second-quarter 2025 results. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.9 billion, which indicates an increase of 6.1% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Mondelez’s quarterly EPS is pegged at 67 cents, indicating a 22.1% decline from the year-ago period. MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average.

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

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