Helen of Troy (HELE): Five-Year Losses Worsen 42% Annually as Value Discount Faces Profit Doubts

Helen of Troy (HELE) remains in the red, with losses worsening at an annualized rate of 42% over the last five years. Looking ahead, forecasts point to continued unprofitability for at least the next three years, while revenue is expected to edge up just 1% annually, which is below the US market’s 9.9% average. Despite this sluggish outlook, HELE stands out for its discounted Price-to-Sales Ratio of 0.3x, significantly lower than both its industry and peer averages. This could attract value-focused investors.

See our full analysis for Helen of Troy.

Up next, we will see how these headline numbers measure up against the wider stories and expectations in the market. This will reveal where consensus holds and where it gets put to the test.

See what the community is saying about Helen of Troy

Margins Get Breathing Room From Cost Moves

• Gross margin improved by 60 basis points, a tangible sign that Project Pegasus and shifting supply out of China are lowering costs, even as headline net losses persist.
• Consensus narrative notes that operational efficiency gains may create more space for eventual earnings growth.
  • Supply chain diversification is expected to reduce tariff pressures and could help stabilize costs, according to management's strategy, giving investors hope that net margins can improve despite ongoing losses.
  • However, persistent dependence on macro factors such as tariffs and rising operational costs means this margin progress remains vulnerable to reversal should any disruption hit supply or trade flows.
• To see what bulls, bears, and consensus think lies under the surface, read the community’s full breakdown. 📊 Read the full Helen of Troy Consensus Narrative.

Profit Trajectory Tied to Supply Chain and Expansion

• Analysts expect HELE to remain unprofitable for at least the next three years, even as they model profit margin moving from -17.9% now to the sector’s average of 7.4% only by 2028 if all catalysts execute.
• Consensus narrative frames this as a slow climb.
  • International expansion and restructured product priorities, including the launch of new items and focus on non-tariff regions, could boost revenue.
  • Still, there is caution that stepping back from long-term growth targets and the inability to provide fiscal '26 guidance signals uncertainty about whether turnaround efforts will be enough to break even in the near term.

Street’s Target Implies 77% Upside, Despite Slow Growth

• With the current share price at $20.71 and the consensus analyst price target at $36.67, the implied upside is a striking 77%, even though revenue is forecast to fall 0.1% annually over three years and most expect no profits in that timeframe.
• Consensus narrative highlights that most analysts agree on this target only if you assume profit margins recover to industry averages and apply a PE ratio of 9.1x to future earnings.
  • This is actually below the current sector multiple, suggesting HELE’s discounted valuation reflects significant skepticism on execution.
  • There is ongoing debate about whether current operational and margin actions can justify such a valuation gap, given risk from further supply chain or macroeconomic shocks.

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.

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A great starting point for your Helen of Troy research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

Helen of Troy’s persistent net losses, uncertain profit outlook, and vulnerability to supply chain risks highlight an inconsistent growth story with little near-term visibility.

If stable progress matters to you, use our stable growth stocks screener to focus on companies consistently expanding revenue and profits, even when the outlook gets tough.

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.

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