Helen of Troy Limited, listed on NASDAQ as HELE, is a company that designs, develops, and markets branded consumer products across various sectors, including home, outdoor, beauty, and wellness. The company recently reported its financial results for the third quarter of fiscal 2026, revealing a mixed performance in terms of earnings and revenue.
On January 8, 2026, HELE reported an earnings per share (EPS) of -$3.65, which was significantly below the estimated EPS of $1.71. This negative EPS reflects the company's current challenges, as highlighted by a price-to-earnings (P/E) ratio of approximately -0.60. Despite this, the company managed to surpass revenue expectations, reporting approximately $512.8 million against an estimated $456.7 million.
The revenue of $512.8 million, although exceeding estimates, marks a 3.4% decline compared to the same period last year. This decline is further emphasized by a decrease in the gross profit margin, which stood at 46.9% compared to the previous year's 48.9%. The operating margin was reported at negative 1.6%, indicating operational challenges that the company is currently facing.
Despite these challenges, Helen of Troy maintains a relatively strong financial position. The debt-to-equity ratio is 0.09, suggesting a low level of debt compared to equity. Additionally, the current ratio of 1.81 indicates that the company has a solid ability to cover its short-term liabilities with its short-term assets, providing some financial stability amidst the earnings decline.
The company's enterprise value to sales ratio is 0.29, and the enterprise value to operating cash flow ratio is 5.51, reflecting a valuation perspective that considers both sales and cash flow. These metrics, alongside the price-to-sales ratio of 0.26, suggest that while the company faces earnings challenges, its market valuation remains relatively stable in terms of sales and cash flow.