El Paso-based consumer-products maker Helen of Troy has slipped into the red, booking a GAAP loss for the fiscal year ended Feb. 28. It is the company’s first annual loss in 17 years and follows a string of multihundred-million-dollar write-downs layered on top of softer sales. The locally headquartered owner of Hydro Flask, OXO, and Osprey says heavy charges and a tough retail backdrop pushed results below zero and helped drive the stock toward multi-year lows.
Big write-downs turned profit into loss
The company’s annual report filed with the SEC details roughly $886 million in goodwill and intangible-asset impairment charges in fiscal 2026, including sizable goodwill write-downs tied to Hydro Flask and Osprey, plus related trade-name impairments that effectively wiped out operating profit for the year, according to Form 10-K. Combined with a weaker sales mix and higher tariff costs, those markdowns turned what had been a consistently profitable business into a GAAP loss for the period.
Management points to tariffs and turnaround steps
Helen of Troy is pitching the rough numbers as part of a broader transition. CEO G. Scott Uzzell said, “We closed fiscal 2026 with net sales, adjusted EPS, and cash flow at the better end of our expectations,” and laid out plans to rekindle brand momentum through product investment and tighter control of working capital. The company also disclosed that it sold a distribution facility in Southaven, Miss., using the proceeds to pay down amounts outstanding under its credit facility, as detailed in a company press release.
Investors punished the stock
A series of impairment announcements and profit downgrades has taken a visible toll on the share price this year. Trading has featured sharp intraday moves and analyst target cuts around earnings updates, with coverage of the April earnings reaction underscoring just how jumpy the stock has become, according to Investing.com.
What this means for El Paso
Helen of Troy lists its corporate team and U.S. mailing address in downtown El Paso, so the weak year has not gone unnoticed among local employees and city watchers who track major employers, per the company’s own site. Local reporting noted that company officials leaned on cash flow and adjusted metrics in their messaging, even as GAAP results showed a loss, a framing meant to reassure investors and the community at large, as reported by the El Paso Times and company materials.
Shareholder probes circle
On top of the financial hit, shareholder attorneys are circling. Several securities law firms have launched inquiries into the company’s disclosures and the market’s reaction, with firms such as Faruqi & Faruqi and Pomerantz issuing investor notices and alerts in recent weeks. Those outreach efforts add another layer of scrutiny for management as it tries to execute the turnaround plan; see notices from Faruqi & Faruqi and Pomerantz LLP.
Outlook
Despite the GAAP loss, Helen of Troy is pointing investors to a fiscal 2027 outlook that calls for consolidated net sales between $1.751 billion and $1.822 billion and adjusted diluted EPS of $3.25 to $3.75. The guidance signals management’s expectation of a recovery if tariff pressures ease and the retail environment steadies. The company says it plans to prioritize working-capital efficiency and balance-sheet repair as it works toward that goal, according to the April investor press release.
