Canaccord Genuity analyst Susan Anderson has maintained a Hold rating on Helen Of Troy (NASDAQ: HELE) while adjusting the stock's price target upward. The firm raised its target to $25, an increase from the previous $23 target, indicating a revised valuation outlook for the company.

Rating and Target Details

The decision to maintain the Hold rating suggests that the analyst views the stock's risk-reward profile as balanced at current levels. The increase in the price target to $25 reflects updated financial projections or market conditions, though the specific drivers for the revision were not disclosed in the report.

Analyst Perspective

Susan Anderson's coverage continues to guide investor expectations for Helen Of Troy. The adjustment in the price target provides a new reference point for the stock's potential upside, while the Hold rating advises investors to maintain their current positions rather than increase exposure.

Helen of Troy Limited reported first quarter fiscal 2027 results for the three-month period ended May 31, 2026, delivering consolidated net sales growth of 8.2% and GAAP diluted earnings per share of $1.51. The company raised its full-year consolidated net sales outlook while affirming its GAAP diluted EPS guidance range, reflecting early signs of progress against its multi-year strategic roadmap despite warnings about supply chain disruptions and softer consumer demand. Management highlighted that revenue risk from expected supply disruption is largely driven by the conflict in the Middle East, alongside risks from cautious retailers and inflation.

First Quarter Fiscal 2027 Financial Highlights

The following table summarizes key consolidated financial metrics for the first quarter of fiscal 2027 compared to the same period in fiscal 2026:

Consolidated net sales revenue increased $30.5 million, or 8.2%, to $402.1 million, with growth recorded in both segments. GAAP diluted EPS of $1.51 includes an after-tax gain of $1.74 on the sale of a distribution facility. Non-GAAP adjusted diluted EPS of $0.17 decreased 58.5% compared to $0.41 in the prior year period, primarily due to an increase in adjusted income tax expense, partially offset by lower interest expense. Consolidated gross profit margin decreased 110 basis points to 46.0%, primarily reflecting the net unfavorable impact of tariffs, a less favorable inventory obsolescence impact year-over-year, and a less favorable customer mix within the Home & Outdoor segment.

Segment Performance

The company operates through two reportable segments — Home & Outdoor and Beauty & Wellness. The table below presents segment-level net sales and adjusted operating margin for the first quarter:

Home & Outdoor net sales revenue increased $16.9 million, or 9.5%, to $194.9 million, driven by strong international demand for technical, lifestyle and travel packs, incremental sales from new product launches, higher sales from expanded distribution in the home and insulated beverageware categories, and a favorable comparison to the prior year period as tariff uncertainty had pulled retailer orders out of the first quarter of fiscal 2026 and into the fourth quarter of fiscal 2025. Home & Outdoor adjusted operating income increased 39.2% to $12.3 million, or 6.3% of segment net sales revenue.

Beauty & Wellness net sales revenue increased $13.5 million, or 7.0%, to $207.2 million, driven by growth in nail care due to new and expanded distribution, higher fan and thermometer sales, and growth in Wellness from incremental new product launches. Beauty & Wellness adjusted operating income decreased 48.2% to $3.8 million, or 1.8% of segment net sales revenue, impacted by the net unfavorable impact of tariffs, higher share-based compensation expense, and a less favorable inventory obsolescence impact year-over-year.

Balance Sheet and Cash Flow

Key balance sheet and cash flow metrics as of and for the three months ended May 31, 2026, are presented below:

Inventory of $467.4 million includes approximately $15 million of incremental tariff costs. Total short- and long-term debt declined to $716.1 million from $871.0 million in the prior year period, reflecting continued prioritization of debt reduction. Net cash used by operating activities for the first quarter was $0.6 million, compared to net cash provided of $58.3 million in the same period last year.

Fiscal 2027 Annual Outlook

The company raised its fiscal 2027 annual outlook for consolidated net sales while maintaining its GAAP diluted EPS range. The following table summarizes the updated outlook:

The outlook assumes tariff rates in place as of June 2026 remain in effect for the balance of fiscal 2027, and includes the benefit from Phase 1 tariff refunds of approximately $9.2 million. The company expects interest expense in the range of $45.5 million to $47.5 million, a GAAP effective tax rate of 27.2% to 29.7%, an adjusted effective tax rate of 24.0% to 26.0%, capital expenditures of $30 million to $34 million, and a net leverage ratio of approximately 3.2x or lower by the end of fiscal 2027. Weighted average diluted shares outstanding are expected to be 23.8 million. Management noted that first-quarter revenue received a temporary $4 million to $5 million boost from earlier Prime Day order timing and embedded potential supply risk tied to two or three supply-chain pinch points in the outlook.

Management Commentary

G. Scott Uzzell, Chief Executive Officer, stated: "We are off to a solid start in fiscal 2027, with first quarter net sales and adjusted EPS above our expectations and growth across both segments. We believe these results reflect early signs of progress against our multi-year roadmap and the disciplined execution of our teams — including POS gains across a number of our key brands — as we continue to sharpen how the business runs, invest in our brands and capabilities, and get closer to the consumer. While there is still meaningful work ahead and we are navigating a dynamic operating environment, we are encouraged by the progress we are making and believe we are creating the foundation for more consistent, long-term growth."