Helen of Troy Limited (NASDAQ: HELE) shares fell more than 21% intra-day on Thursday, even as the company reported fiscal second-quarter 2026 results that exceeded analyst expectations for both earnings and revenue.

The consumer products company posted adjusted earnings per share of $0.59, topping estimates of $0.53. Revenue reached $431.8 million, ahead of expectations of $416.78 million. However, both metrics represented steep declines from the prior year, with adjusted EPS down 51.2% from $1.21 and revenue down 8.9% from $474.2 million.

The company reported a GAAP loss of $13.44 per share, largely driven by non-cash impairment charges totaling $326.4 million ($294.0 million after tax), which included $292.6 million in goodwill reductions and $33.8 million in intangible asset write-downs.

Gross margin contracted to 44.2% from 45.6% a year earlier, primarily due to higher tariffs, which reduced consolidated margins by approximately 200 basis points.

For fiscal 2026, Helen of Troy cut its adjusted EPS forecast to $3.75-$4.25, below analyst expectations of $4.58, while maintaining its revenue outlook of $1.74-$1.78 billion, in line with consensus estimates of $1.75 billion.