Helen of Troy Limited (NASDAQ: HELE) shares plummeted 22.65% in pre-market trading on Thursday following the release of its disappointing first-quarter fiscal 2026 results. The global consumer products company reported a substantial GAAP loss per share of $19.65, a stark contrast to the $0.26 earnings per share in the prior year.
The company's financial performance was significantly impacted by non-cash asset impairment charges of $414.4 million, leading to an operating margin of -109.5%. Even on an adjusted basis, the results fell short of expectations. Helen of Troy's adjusted earnings per share came in at $0.41, missing the analyst consensus estimate of $0.85 by 51.76%. Consolidated net sales decreased by 10.8% to $371.7 million, also falling below the anticipated $395.7 million.
Adding to investor concerns, Helen of Troy provided a weak outlook for the second quarter of fiscal 2026. The company projects consolidated net sales between $408 million and $432 million, with adjusted diluted earnings per share ranging from $0.45 to $0.60. These figures are considerably below the current analyst expectations of $474.9 million in revenue and $1.14 in earnings per share. The company is actively working to mitigate the impact of tariffs and is in the process of identifying a new CEO, which adds uncertainty to its near-term prospects.