Helen of Troy Limited (NASDAQ:HELE) storms higher after beating expectations and signaling a bold reset toward growth.

A sharp earnings beat and confident outlook are leading to a short squeeze despite lingering category weakness.

Short Squeeze

According to data from Benzinga Pro, Helen of Troy’s stock has a short interest of 22% of its float. Therefore, the high stock movement is a result of positive earnings and a short-squeeze

Quarterly Earnings Performance

The consumer products company reported fourth-quarter adjusted earnings per share of 83 cents, beating the analyst consensus estimate of 74 cents. Quarterly sales of $470.025 million (down 3.3% year over year) outpaced the Street view of $450.378 million.

Revenue declined due to weakness in Beauty & Wellness, led by lower sales of fans, prestige hair care, humidifiers and air purifiers.

Home & Outdoor also fell, driven by declines in insulated beverageware and home categories.

Gross profit margin came in at 44.6%, down from 48.6%. The firm reported an adjusted operating margin of 8.3% compared to 15.4% a year ago.

Margins were impacted by non-cash asset impairment charges of $79.20 million.

Adjusted EBITDA margin was 10.3%, lower than 17.4% a year ago.

Cash and equivalents totaled $18.9 million as of both fiscal 2026 and 2025 year-ends.

Inventory was $455.8 million, which includes approximately $34 million of higher tariff costs, compared to $452.6 million.

Outlook

Helen of Troy sees 2027 adjusted EPS of $3.25-$3.75, compared with the $3.35 analyst estimate. The firm sees sales of $1.751 billion-$1.822 billion, compared with the $1.782 billion analyst estimate.

The firm projects 2027 GAAP EPS of $3.57-$4.18, versus the $2.03 analyst estimate.

“We believe fiscal 2027 marks a pivotal shift as we transition to a growth-first mindset, positioning us for long‑term shareholder value creation,” said CEO G. Scott Uzzell.

HELE Price Action: Helen of Troy shares were up 17.20% at $23.17 at the time of publication on Thursday, according to Benzinga Pro data.

Photo by Piotr Swat via Shutterstock