Helen of Troy Limited (HELE) delivered a mixed bag on Thursday that leaned decidedly negative. The consumer products company beat revenue expectations but spooked investors by significantly lowering its earnings outlook for fiscal 2026.

The quarter itself wasn't terrible. Helen of Troy reported third-quarter adjusted earnings of $1.71 per share, matching analyst consensus. Revenue came in at $512.8 million, topping the Street's estimate of $503.6 million. But here's the problem: that revenue figure represented a 3.4% decline from the prior year, suggesting the company is still struggling with demand headwinds.

The real disappointment came with guidance. Helen of Troy slashed its fiscal 2026 adjusted earnings forecast to a range of $3.25 to $3.75 per share, down from the previous $3.75 to $4.25 range. That's well below the $4.02 analyst consensus, and when you cut guidance by that much, investors tend to head for the exits.

The company did narrow its fiscal 2026 revenue outlook to $1.758 billion to $1.773 billion from the prior range of $1.739 billion to $1.780 billion. The new midpoint sits roughly in line with the $1.763 billion consensus estimate, so at least there's some stability on the top line.

Shares fell 5.5% to $19.44 on Friday as the market digested the weaker profitability outlook.

Analyst Response

Wall Street analysts wasted no time adjusting their views following the earnings release:

Canaccord Genuity analyst Susan Anderson maintained a Hold rating but lowered her price target from $23 to $22. Meanwhile, UBS analyst Peter Grom also kept a Neutral rating while cutting his target from $25 to $22. Both moves reflect tempered expectations given the reduced earnings guidance and ongoing revenue pressures facing the company.