Helen of Troy Limited (HELE) shares are in freefall, plunging 22.65% in pre-market trading on Thursday, following the release of disappointing first-quarter fiscal 2026 results. The global consumer products company reported a staggering GAAP loss per share of $19.65, a dramatic reversal from the $0.26 earnings per share in the same period last year.

The company's financial performance fell significantly short of market expectations. Adjusted earnings per share came in at $0.41, missing the analyst consensus estimate of $0.85 by 51.76%. This represents a 58.59% decrease from the $0.99 per share reported in the previous year. Net sales also disappointed, declining 10.8% to $371.7 million, well below the estimated $395.7 million.

The sharp downturn in Helen of Troy's performance was primarily attributed to non-cash asset impairment charges of $414.4 million, which severely impacted the operating margin. The company's outlook for the second quarter also failed to inspire confidence, with projected consolidated net sales between $408 million and $432 million, and adjusted diluted earnings per share ranging from $0.45 to $0.60. These figures suggest ongoing challenges for the company in the near term. As Helen of Troy grapples with these financial hurdles and searches for a new CEO, investors are reassessing their positions, leading to the significant pre-market sell-off.