Why Helen of Troy Stock Is Skyrocketing Today

Shares of Helen of Troy (NASDAQ: HELE) are posting big gains on Wednesday following the release of the company's latest quarterly report. The consumer products specialist's share price was up 17.9% as of 1:30 p.m. ET today.

Before the market opened this morning, Helen of Troy published results for the second quarter of its 2025 fiscal year, which ended Aug. 31. The company posted sales and earnings that beat the market's expectations and earnings guidance that beat Wall Street's target.

Helen of Troy beat Wall Street's expectations in its second quarter

Helen of Troy recorded adjusted earnings per share (EPS) of $1.21 on revenue of $474.2 million. Sales declined 3.5% year over year in the period, but they still were $15.3 million above the average Wall Street analyst target.

Adjusted EPS was $0.16 higher than the average analyst estimate. Sales and earnings came in significantly above Wall Street's expectations, and its full-year earnings target gave investors an added reason to feel optimistic.

Full-year earnings guidance beat expectations, but there may be a catch

The company has faced headwinds connected to inflation, tariffs on Chinese-made goods, supply chain challenges, and other factors. Even with today's big pop, the stock is down roughly 39% across 2024 trading. It's also down 72% from its high.

For the full fiscal year, the company reiterated its sales guidance to land between $1.88 billion and $1.94 billion. Management also reiterated guidance for EPS under generally accepted accounting principles between $4.69 and $5.45, and adjusted EPS between $7 per share and $7.50. That guidance range came in better than the average Wall Street target, which had called for adjusted EPS of $7.11.

On the other hand, the company lowered its free cash flow (FCF) guidance for the year to between $180 million and $200 million -- down from its previous guidance for FCF between $200 million and $240 million. So while the short-term earnings picture is looking better than many had expected, it's not clear whether the performance improvement will continue further out.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.