Helen of Troy Limited (NASDAQ: HELE) stock jumped in Thursday's premarket trading after the company reported better-than-expected adjusted earnings for the fiscal second quarter of 2027, despite a slight revenue miss.

The stock gained as Helen of Troy raised its full-year earnings and cash flow forecasts, reported stronger profit margins and reduced debt.

The global consumer products company owns or licenses brands including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith, Revlon and Olive & June.

Helen of Troy Beats Earnings Estimates, Margins Improve

Adjusted earnings per share rose 33.9% to 79 cents from 59 cents a year earlier, beating analysts' estimate of 50 cents.

GAAP earnings reached 19 cents per share, compared with a loss of $13.44 per share a year earlier.

Net sales increased 2.1% year over year to $440.93 million from $431.78 million, narrowly missing the $442.33 million analyst estimate.

Adjusted EBITDA rose to $49.4 million from $36.2 million. The adjusted EBITDA margin expanded to 11.2% from 8.4%.

Gross margin improved by 800 basis points to 52.2%, while adjusted operating margin increased to 8.6% from 6.2%.

The results included $26.9 million in gross pretax tariff refunds. Helen of Troy reinvested about $23 million, leaving a net pretax benefit of approximately $4 million.

CEO G. Scott Uzzell highlighted improvements in the company's underlying business.

"Our second quarter results reflect continued progress against our multi-year roadmap. Sales were in line, and Adjusted EBITDA and Adjusted EPS were better than expected, without including the net tariff refund benefit in the quarter," Uzzell said.

Home & Outdoor Sales Rise, Beauty & Wellness Struggles

Helen of Troy's Home & Outdoor segment reported a 9.2% sales increase to $227.9 million.

Growth across all brands, stronger demand for packs, international sales, expanded distribution and new products supported the increase. Adjusted operating margin improved to 12.3%.

However, Beauty & Wellness sales declined 4.5% to $213 million. Weak demand for hair appliances, prestige hair care products and water filtration products weighed on results.

Growth in heaters, thermometers and nail care products partly offset the decline. The segment's adjusted operating margin improved to 4.7%.

Helen of Troy Cuts Debt, Improves Cash Flow

Helen of Troy reduced inventory to $480.3 million from $528.9 million, while total debt declined to $672.6 million from $893.2 million. Cash totaled $22.6 million.

Operating cash flow for the first six months increased to $56.5 million from $47.9 million. Free cash flow rose to $38.3 million from $23 million.

Helen of Troy Raises Fiscal 2027 Earnings Outlook

Helen of Troy raised its fiscal 2027 GAAP earnings forecast to $3.63-$4.26 per share from $3.57-$4.18. Analysts expect $3.77 per share.

The company also increased its adjusted earnings forecast to $3.60-$4.15 per share from $3.25-$3.75, above the $3.55 analyst estimate at the low end.

Meanwhile, Helen of Troy narrowed its full-year revenue outlook to $1.768 billion-$1.822 billion from $1.759 billion-$1.831 billion. Wall Street expects $1.808 billion.

The company raised its adjusted EBITDA forecast to $203 million-$210 million and increased its free cash flow outlook to $120 million-$140 million.

Despite the improved outlook, Helen of Troy expects continued inflationary pressure and weak discretionary consumer demand.

HELE Price Action

HELE Price Action: Helen of Troy shares were up 20.63% at $30.82 during premarket trading on Thursday. The stock is trading at a new 52-week high, according to market data.