Helen of Troy Limited, a designer and marketer of consumer products across home, outdoor, beauty, and wellness sectors, reported a consolidated net sales revenue of $530.7 million for the third quarter of fiscal 2025, reflecting a decrease of 3.4% compared to $549.6 million in the same period last year. The company’s gross profit margin improved by 90 basis points to 48.9%, up from 48.0% in the prior year.

Operating income was reported at $75.1 million, resulting in a GAAP operating margin of 14.2%, compared to 19.5% in the third quarter of fiscal 2024. Non-GAAP adjusted operating income was $87.9 million, leading to an adjusted operating margin of 16.6%, a modest increase from 16.3% a year ago.

Net income dropped to $49.6 million, translating into a GAAP diluted EPS of $2.17, versus $3.19 in the previous year. The non-GAAP adjusted diluted EPS decreased to $2.67 from $2.79. The adjusted EBITDA margin improved to 18.2%, compared to 17.8% in the third quarter of fiscal 2024, with adjusted EBITDA reported at $96.8 million.

In terms of segment performance, net sales in the Home & Outdoor category increased by 4.3% to $246.1 million, while the Beauty & Wellness segment saw a decline of 9.3%, yielding revenue of $284.6 million.

The company updated its fiscal year 2025 outlook, expecting consolidated net sales between $1.888 billion and $1.913 billion, indicating a decline of approximately 5.8% to 4.6%. This revision incorporates the adverse impact of the weakest cough, cold, and flu season in the U.S. in eight years, expected to result in a shortfall of $25 million to $30 million for the full year.

The adjusted EPS outlook has been lowered to a range of $7.15 to $7.40, alongside expectations of adjusted EBITDA between $292 million and $295 million, which includes an estimated contribution of $3 million to $4 million from the recent acquisition of Olive & June finalized on December 16, 2024. The company’s net leverage ratio is projected to be between 2.85x and 2.75x by the end of fiscal 2025.

As part of ongoing efforts to enhance operational effectiveness and reduce costs, Helen of Troy remains on track with Project Pegasus, which aims for annualized pre-tax operating profit improvements of approximately $75 million to $85 million by fiscal 2027.