Why Helen of Troy Stock Is Soaring Today

Actions of Helen of Troy (HELLO 15.26%) posted big gains on Wednesday after the company released its latest quarterly report. The consumer products specialist’s stock price is up 17.9% as of 1:30 PM ET today.

Before the market opened this morning, Helen of Troy released results for the second quarter of its 2025 fiscal year, which ended Aug. 31. The company posted sales and earnings that beat market expectations and earnings guidance that beat Wall Street’s target.

Helen of Troy beat Wall Street expectations in its second quarter

Helen of Troy posted adjusted earnings per share (EPS) of $1.21 on revenue of $474.2 million. Sales fell 3.5 percent year-over-year in the period, but were still $15.3 million above the average Wall Street analyst target.

Adjusted EPS was $0.16 higher than the average analyst estimate. Sales and earnings were significantly above Wall Street’s expectations, and its full-year earnings target gave investors additional reason to feel bullish.

Full-year earnings guidance beats expectations, but there may be a catch

The company has faced headwinds related to inflation, tariffs on Chinese-made goods, supply chain challenges and other factors. Even with today’s popularity, the stock is down about 39% during trading in 2024. It’s also down 72% from its high.

For the full fiscal year, the company reiterated its sales guidance to achieve between $1.88 billion and $1.94 billion. Management also reiterated guidance for GAAP EPS of $4.69 to $5.45 and adjusted EPS of $7 to $7.50 per share. That guidance range came in better than the average Wall Street target, which had called for adjusted EPS of $7.11.

On the other hand, the company lowered its free cash flow (FCF) guidance for the year to between $180 million and $200 million — down from previous FCF estimates of between $200 million and 240 million dollars. So while the near-term earnings picture looks better than many expected, it is unclear whether the performance improvement will continue further.