Helen of Troy (HELE) has put up a tough set of FY 2026 numbers, with Q3 revenue of US$512.8 million, basic EPS of US$3.65 loss and net income excluding extra items at a loss of US$84.1 million. Over recent quarters the company has seen revenue move from US$485.9 million in Q4 FY 2025 to US$371.7 million in Q1 FY 2026, US$431.8 million in Q2 and US$512.8 million in Q3. Basic EPS shifted from US$2.22 to a US$19.65 loss, US$13.44 loss and US$3.65 loss over the same stretch, putting the focus squarely on how sustainable the current margin pressure is and what might eventually support a recovery in profitability.

See our full analysis for Helen of Troy.

With the headline figures on the table, the next step is to set these results against the widely followed narratives around Helen of Troy to see which stories still hold up and which are being challenged by the numbers.

Trailing 12‑Month Losses Reach US$792.5 Million

• Over the last twelve months to Q3 FY 2026, Helen of Troy recorded US$1.8 billion in revenue and a net loss excluding extra items of US$792.5 million, compared with a profit of US$123.8 million on US$1.9 billion of revenue a year earlier.
• Consensus narrative expects margins to improve from a current loss of 44.0% to 9.2% by around 2029, which sits in sharp contrast to the recent shift from positive trailing earnings to a large loss. This prompts questions about how quickly the business can move from US$792.5 million of losses back to the US$169.3 million of earnings that analysts are modeling.
  • Analysts are looking for roughly flat revenue at about US$1.8 billion over the next few years, so most of the improvement in that view would need to come from costs and margins rather than top line changes.
  • The current share price of US$23.82 compared with an analyst target of US$26.33 shows only a modest gap, even though the swing from US$123.8 million of profit to a US$792.5 million loss is already in the trailing numbers.

Quarterly Losses Narrow From US$450.7 Million To US$84.1 Million

• Within FY 2026 so far, net loss excluding extra items moved from US$450.7 million in Q1 to US$308.6 million in Q2 and US$84.1 million in Q3, alongside revenue of US$371.7 million, US$431.8 million and US$512.8 million respectively.
• Bulls argue that supply chain changes and a premium brand focus can set Helen of Troy up for stronger margins and pricing power, yet the current year still shows three straight quarterly losses and a trailing 58.8% annualized decline in earnings over five years. The path from these recent quarterly losses to the higher margins in the bullish case is therefore not reflected in the historical numbers yet.
  • Bullish analysts see revenue growing 1.8% annually and margins rising from a loss of 17.9% to a 12.9% profit margin by about 2028, while the last four reported quarters together summed to a large net loss excluding extra items.
  • That bullish view also assumes earnings could reach US$254.0 million from a current loss of US$333.2 million on a trailing basis, a reversal that would be a very large swing compared with the FY 2026 quarterly loss pattern so far.

Have a closer look at how supporters of the bullish case connect these earnings swings to their long term thesis 🐂 Helen of Troy Bull Case.

P/S Of 0.3x Versus Peers At 0.8x

• Helen of Troy currently trades on a P/S of 0.3x compared with 0.8x for peers and 0.6x for the broader US Consumer Durables industry, while a DCF fair value of US$20.35 sits below the current share price of US$23.82.
• Bears highlight that multi year earnings have declined at an annualized rate of 58.8% and that interest payments are not well covered by earnings. Even with a lower P/S multiple, the combination of weak coverage and a share price above the DCF fair value is used to argue that the stock is not clearly cheap when profits are negative.
  • The trailing twelve month basic EPS of a US$34.53 loss compares with a prior trailing figure of US$5.38 of basic EPS, emphasizing how far earnings have moved away from the levels that once supported positive coverage.
  • The DCF fair value of US$20.35 is below both the current price and the consensus target of US$26.33, which bears point to as an example of how cash flow based estimates are not aligned with the idea that the low P/S alone makes the shares attractive.

Skeptics point to the growing losses and weak interest coverage as reasons to study the cautious case in detail 🐻 Helen of Troy Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Helen of Troy on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

After weighing both bullish and cautious takes, the real question is how this story fits your own risk comfort and time horizon. If the swings in earnings and valuations raise concerns, move quickly from headlines to hard data and review the 2 important warning signs.

See What Else Is Out There

Helen of Troy faces large recent losses, pressured margins and weak interest coverage, so the earnings story and balance sheet strength both look uncertain.

If you want ideas where financial resilience is front and center, check out the solid balance sheet and fundamentals stocks screener (42 results) and quickly compare companies built on stronger foundations than Helen of Troy.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.