Helen of Troy: Supply Chain Diversification, Risk Mitigation & Other Major Drivers

Helen of Troy Limited recently reported its first-quarter fiscal 2026 results, underlining significant challenges and some areas of progress. The earnings call transcript reveals a complex landscape where the company is navigating a changing macroeconomic environment, tariff-related disruptions, and a focus on realigning strategic priorities to drive growth. The company reported a 10.8% decrease in consolidated net sales, which was below their expectations. Approximately 45% of the organic revenue decline was attributed to tariff-related disruptions. These included the cancellation of direct import orders from China, pull-forward activity impacting first-quarter sales, and challenges in the China market due to heightened competition and shifts toward localized fulfillment. The tariff issues, although temporary, are expected to persist into the second quarter, causing uncertainty in the revenue forecast.