Helen of Troy stock price target lowered to $29 at UBS on tariff impact

Investing.com - UBS lowered its price target on Helen of Troy (NASDAQ:HELE) to $29.00 from $32.00 on Friday, while maintaining a Neutral rating on the stock. According to InvestingPro data, analyst targets for the stock range from $29 to $60, with the company currently appearing undervalued based on Fair Value analysis.

The consumer products company reported first-quarter results that missed Street expectations, primarily due to weaker organic sales growth. The company’s sales declined 10.8%, with approximately 8 percentage points of the drop attributed to tariff-related trade disruptions. InvestingPro data shows the company maintains a healthy current ratio of 1.7x, though revenue has declined 4.35% over the last twelve months.

Helen of Troy has withheld its fiscal year 2026 guidance due to uncertainty surrounding tariffs and macroeconomic conditions. Management did provide expectations for the second quarter, suggesting that current headwinds are largely transitory but will persist into Q2 before improving in the second half.

Additional factors weighing on results included broader demand softness, consumer trade-down behavior, and retailer inventory tightening. Despite these challenges, management indicated that current Street EPS estimates for the year appear reasonable.

The stock initially opened 30% lower following the earnings report, though the decline narrowed somewhat later in the trading day.

In other recent news, Helen of Troy Ltd reported its financial results for the first fiscal quarter of 2026, revealing a significant earnings miss compared to market expectations. The company posted an earnings per share (EPS) of $0.41, which was well below the forecasted $0.93, resulting in a 55.91% negative surprise. Revenue also fell short of expectations, coming in at $371.7 million compared to the anticipated $400.36 million, marking a 7.16% shortfall. Additionally, Helen of Troy experienced a net sales decline of 10.8%, with organic net sales falling 17.3%. The company is focusing on cost reduction measures and supply chain diversification to address these challenges. Looking ahead, Helen of Troy expects Q2 net sales to range between $408 million and $432 million, with adjusted EPS anticipated between $0.45 and $0.60. The company plans to implement 7-10% price increases across its portfolio and aims to reduce China tariff exposure to 15% by fiscal 2027. Despite these hurdles, interim CEO Brian Grass emphasized the company’s focus on product innovation and strategic resilience.

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