Helen of Troy Limited (HELE): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see the structural map of how Helen of Troy Limited (HELE) actually generates its revenue, especially after navigating a complex fiscal 2025 that saw $1.908 billion in consolidated net sales. Honestly, their model is a fascinating blend of owning powerhouse brands like OXO and Hydro Flask while also managing key licensing agreements, all while trying to streamline operations through initiatives like Project Pegasus, which included a $51.5 million non-cash impairment charge last year. To understand their resilience, we need to see how they convert that activity into the $113.2 million in operating cash flow they generated, all while servicing nearly $917 million in debt. Keep reading below to see the precise nine-block breakdown of their entire strategy.

Helen of Troy Limited (HELE) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power Helen of Troy Limited's operations as of late 2025. These partnerships are critical for getting their diverse portfolio of brands-from home goods to personal care-into consumers' hands.

The structure relies heavily on external manufacturing and distribution networks, which are being optimized under the Project Pegasus initiative. This program targets annualized pre-tax operating profit improvements of approximately $75 million to $85 million by the end of fiscal 2027. For the fiscal year 2025, approximately 35% of these targeted savings were expected to be realized. The savings realization is planned to be approximately 60% through reduced cost of goods sold and 40% through lower SG&A.

The company's reliance on external relationships is evident in the impact of specific agreements. For instance, a year-over-year headwind of approximately 1.0% in Beauty & Wellness net sales in fiscal 2025 was related to the expiration of an out-license relationship in the Wellness category. Conversely, growth in the Home & Outdoor segment, which saw net sales revenue increase by $10.2 million, or 4.3%, to $246.1 million in the third quarter of fiscal 2025, was primarily driven by net gains in retailer distribution. The Olive & June acquisition, completed in December 2024, immediately contributed $23.0 million to segment net sales revenue in the fourth quarter of fiscal 2025.

Here is a look at some key financial metrics from the fiscal year 2025 that reflect the output of these partnerships:

Helen of Troy Limited manages a portfolio that includes brands associated with licensing agreements, such as those for Braun, Vicks, and Honeywell, alongside wholly-owned brands like OXO. The company's distribution relies on a broad network of retailers and e-commerce platforms across North America, Europe, and other international markets.

The company's operational efficiency efforts, Project Pegasus, directly impact its relationship with supply chain partners by targeting cost reductions:

• Targeted annualized pre-tax operating profit improvements: Approximately $75 million to $85 million by the end of fiscal 2027.
• Expected savings realization in fiscal 2025: Approximately 35%.
• Savings allocation via COGS reduction: Approximately 60%.
• Savings allocation via SG&A reduction: Approximately 40%.

The company is also working to mitigate risks associated with its global supply chain, which includes efforts to diversify manufacturing outside of China.

Finance: draft 13-week cash view by Friday.

Helen of Troy Limited (HELE) - Canvas Business Model: Key Activities

You're looking at how Helen of Troy Limited actually operates day-to-day to keep those brands moving, and honestly, it's a mix of big strategic overhauls and focused brand execution. Here's the quick math on the core things they have to do well.

Brand acquisition, development, and portfolio management

Managing the portfolio is key, especially after bringing in new names. Helen of Troy Limited has completed 8 acquisitions historically, with an average acquisition amount around $238 million across sectors like Beauty & Personal Care Products and Beauty Tech. The most recent major move was acquiring Olive & June, LLC in November 2024 for a total purchase price of $240 million, which included a $15 million earnout. This deal implied a multiple of less than 11x the estimated calendar year 2025 adjusted EBITDA before synergies. The company expected this addition to be immediately accretive to revenue growth rate, gross profit margin, adjusted EBITDA margin, adjusted diluted EPS growth rate, and free cash flow conversion. For the full fiscal year 2025, consolidated net sales revenue came in at $1.908 billion, with Non-GAAP adjusted diluted EPS at $7.17. The company's portfolio includes brands like OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith, Revlon, and the newly added Olive & June. To be fair, the divestiture process for other assets was paused due to unsatisfactory offers as of the second quarter of fiscal 2026.

The portfolio management activity is summarized below:

Global supply chain and logistics optimization (Project Pegasus)

Project Pegasus, the global restructuring plan, is central to their operational efficiency drive. This activity targets annualized pre-tax operating profit improvements targeted between $75 million to $85 million. These savings are expected to be substantially achieved by the end of fiscal 2027. The planned cadence for recognizing these savings was approximately 35% in fiscal 2025, with the remainder split across fiscal 2026 (25%) and fiscal 2027 (15%). The total expected profit improvement breaks down into approximately 60% through reduced cost of goods sold and 40% through lower SG&A. In fiscal 2025, the company recognized total pre-tax restructuring charges of $60.9 million related to Project Pegasus, slightly exceeding the high end of the previously disclosed $55 million range. As of February 28, 2025, a remaining liability of $7.7 million was expected to be paid during fiscal 2026. These cost-saving initiatives definitely helped; they were partly responsible for lower commodity and product costs, which contributed to a 90 basis point increase in consolidated gross profit margin in the third quarter of fiscal 2025. It's a massive undertaking to streamline operations.

Product design, engineering, and innovation for core brands (e.g., OXO)

Innovation is a required activity, fueled by reinvestment from the efficiency programs. Helen of Troy Limited continues to plan for a year-over-year increase in growth investment spending of roughly 100 basis points. This investment goes directly into product innovation and marketing for long-term brand health. For instance, the OXO brand saw market share growth in kitchen gadgets and dry food storage in the three months leading up to Q4 FY2025, driven by new product innovation like the OXO Grilling Prep & Carry System. Overall, fiscal year to date through November 2024, seven of their key categories grew or maintained market share in the U.S., a direct result of innovation, improved marketing, and distribution gains.

• Growth investment spending planned increase: approximately 100 basis points year-over-year.
• U.S. market share growth/maintenance: Seven key categories as of fiscal year to date through November 2024.
• Example innovation: OXO Grilling Prep & Carry System launched in May (prior to Q4 FY2025).

Data-driven marketing and brand-building across channels

The company is actively using the resources freed up by Project Pegasus to improve marketing. This includes funding improvements in marketing through innovative creative strategies and more dynamic media campaigns. However, marketing expense was noted as a primary driver for the decrease in the adjusted operating margin for the full fiscal year 2025. In the Beauty & Wellness segment, the third quarter of fiscal 2025 faced headwinds from a weak illness season globally, which included the weakest U.S. season in the past eight years (excluding the COVID anomaly year). This shows how external factors directly impact the effectiveness of brand-building activities in certain categories.

International market expansion and distribution streamlining

Expanding internationally is a clear focus area. International sales showed strength in the fourth quarter of fiscal 2025, and the company reported growth in the International segment in the third quarter of fiscal 2025. Specifically, the second quarter of fiscal 2025 saw a near 5% rise in international sales. The company is also leveraging its new state-of-the-art Tennessee distribution center to bring significant scale and service capabilities to support this growth. Looking ahead to the third quarter of fiscal 2026, the Olive & June acquisition is expected to contribute an incremental net sales range of $36 million to $39 million to the Beauty & Wellness segment.

Helen of Troy Limited (HELE) - Canvas Business Model: Key Resources

You're looking at the hard assets and capabilities that power Helen of Troy Limited's operations as of late 2025. These aren't just things they own; they are the engines driving revenue and competitive advantage.

Portfolio of Leadership Brands (Hydro Flask, OXO, Osprey, Hot Tools)

Helen of Troy Limited maintains a diversified portfolio across Home & Outdoor and Beauty & Wellness segments. The key brands are the foundation of their market presence.

• The portfolio includes OXO, Hydro Flask, Osprey, Hot Tools, Vicks, Braun, Honeywell, PUR, Drybar, Curlsmith, Revlon, and Olive & June.
• The Home & Outdoor portfolio specifically includes Osprey, Hydro Flask, and OXO.
• Osprey continues to lead the technical pack market, holding the No. 1 market share, which is three times the size of the next national brand.
• The company recorded non-cash asset impairment charges of $120.8 million for Hydro Flask and $98.3 million for Osprey in Q1 Fiscal 2026, reflecting valuation adjustments following performance challenges.

The recent acquisition of Olive & June is now integrated, with a total purchase consideration expected to be $225 million in cash at closing, plus a $15 million earn-out. Olive & June's estimated calendar year 2024 net sales revenue was approximately $92 million.

Intellectual property and licensed brand agreements

The value here is tied up in trademarks and the ability to extend these brands into new categories. The company has trademarks belonging to Helen of Troy Limited or its subsidiaries, and others used under license from their respective licensors.

Global shared services platform for finance and supply chain

The operational scale is a key resource, especially as the company works through supply chain adjustments. Project Pegasus initiatives are specifically cited for driving lower commodity and product costs. The plan was on track to deliver savings between $26 million to $30 million.

Cash flow from operating activities of $113.2 million in Fiscal Year 2025

This figure represents the cash generated from the core business operations for the full Fiscal Year 2025. For context, net cash provided by operating activities for the first nine months of Fiscal Year 2025 was $78.2 million. The Free Cash Flow for the fiscal year ending February 28, 2025, was reported as $83.32M.

Global distribution network and optimized fulfillment centers

The physical network is undergoing strategic diversification to mitigate geopolitical risks. The company is actively working to reduce reliance on single-source regions.

• In July 2024, nearly 80% of goods were procured in Asia, with 15% of that amount sourced outside China.
• Helen of Troy Limited expects to dual-source over 40% of its China purchases by the end of FY2026.
• The goal is to dual-source over 60% of China purchases by the end of FY2027.
• The state-of-the-art Tennessee distribution center is noted as providing long-term efficiency and scalability opportunities.

Finance: draft 13-week cash view by Friday.

Helen of Troy Limited (HELE) - Canvas Business Model: Value Propositions

The Value Propositions for Helen of Troy Limited center on delivering trusted, high-quality products across key consumer categories, supported by internal efficiency gains that translate into competitive value.

Category-leading, trusted products for daily life (e.g., OXO kitchen tools)

The portfolio includes established brands like OXO, which contributed to the Home & Outdoor segment's year-over-year net sales revenue growth of 4.3% to $246.1 million in the third quarter of fiscal 2025. Distribution strength is a key component, with U.S. weighted distribution for brands like OXO growing by 11% Year-to-Date as of Q3 FY25. The company's overall consolidated net sales for the fourth quarter of fiscal 2025 were $485.9 million, a decrease of 0.7% year-over-year.

High-quality, durable outdoor and hydration gear (Hydro Flask, Osprey)

Hydro Flask and Osprey are part of the Leadership Brands portfolio that drove the Home & Outdoor segment's performance. The segment's adjusted operating margin reached up to 18.4% in Q3 FY25. The company's fiscal 2025 outlook for consolidated net sales was narrowed to a range of $1.888 billion to $1.913 billion.

Professional-grade beauty and wellness products for home use

The Beauty & Wellness segment faced headwinds, reporting a net sales revenue decrease of 9.3% to $284.6 million in the third quarter of fiscal 2025, impacted by a weak illness season. However, the company's overall consolidated gross profit margin improved by 90 basis points to 48.9% in Q3 FY25, partially due to lower commodity and product costs.

Operational efficiencies from Project Pegasus leading to competitive pricing

Project Pegasus, a global restructuring initiative, was completed in fiscal 2025. The project resulted in total pre-tax restructuring charges of $60.9 million recognized in the fourth quarter of fiscal 2025. The initiative is designed to achieve targeted annualized pre-tax operating profit improvements of approximately $75 million to $85 million by the end of fiscal 2027. For fiscal 2025 specifically, the expected cadence for savings recognition was approximately 35% of the total.

DIY alternatives to pricey salon services (Drybar, Olive & June)

Brands like Drybar, Olive & June, Hot Tools, and Revlon are positioned as DIY alternatives. Revlon hair tools deliver salon styles compared to other brands that can cost up to 10 times more. The acquisition of Olive & June, completed in December 2024, contributed $23.0 million, or 4.7%, to consolidated net sales revenue in the fourth quarter of fiscal 2025. The expected adjusted EBITDA contribution from Olive & June for the full fiscal 2025 was $3-$4 million.

Key financial metrics for the fiscal year ended February 28, 2025, include:

The company's Home & Outdoor segment delivered $246.1 million in net sales revenue in Q3 FY25. The Beauty & Wellness segment delivered $284.6 million in net sales revenue in Q3 FY25.

Helen of Troy Limited (HELE) - Canvas Business Model: Customer Relationships

You're looking at how Helen of Troy Limited (HELE) connects with the people buying their products, which is key since their full fiscal year 2025 consolidated net sales landed at $1.908 billion. The relationship strategy blends digital engagement with deep retail ties.

Dedicated brand-specific communities and social media engagement

Helen of Troy Limited uses digital tools to foster brand loyalty. The company utilizes technology like Sprout Social to manage its marketing and engagement efforts across its portfolio. Efforts to drive consumer engagement through social media and seasonal offerings are ongoing.

• The company focuses on creating engaging digital experiences.
• Engagement includes social media interaction and gathering consumer feedback.
• The acquisition of Olive & June, an omnichannel nail care brand, expands this direct-to-consumer relationship space.

Automated self-service for online order tracking and support

The company actively manages its online presence, which includes direct-to-consumer sales through brand websites. While specific self-service metrics aren't public, the infrastructure supports handling customer inquiries, product assistance, and warranty claims across its brands.

Data-centric brand strategies to inform product development

Helen of Troy Limited reinforces brand fundamentals through a data-driven approach. They focus on leveraging data analytics to understand consumer behavior and preferences. This focus supports the reinvestment of resources, partly fueled by Project Pegasus initiatives, into brand strengthening.

The company's overall fiscal year 2025 gross profit margin was 47.9%, showing the impact of cost discipline that frees up capital for these strategic investments.

Key account management for major retail partners

Managing relationships with large customers is a noted dependency and focus area for Helen of Troy Limited. The company achieved an 11% increase in U.S. weighted distribution year-to-date as of the third quarter of fiscal 2025. This distribution growth is a direct result of strong key account management and expanded channel access.

Omnichannel experience integrating online and physical retail

The strategy integrates online and physical retail, exemplified by the acquisition of Olive & June, which is described as an omnichannel nail care brand. The company's international growth is driven by expanded distribution across new channels and partnerships. The focus on e-commerce is evident in the performance of specific brands; for example, the Daylite expandable travel pack from Osprey is noted as a top online seller.

The overall focus on digital and omnichannel is supported by strong cash generation, with Q1 fiscal 2026 free cash flow reported at $45 million compared to $16 million in the same period last year, indicating resources are available to fund these integrated experiences.

Helen of Troy Limited (HELE) - Canvas Business Model: Channels

You're looking at how Helen of Troy Limited moves its products to the customer as of late 2025. This involves a mix of traditional big-box partners and growing digital avenues.

Mass market retailers (e.g., Walmart, Target)

This channel remains a core component, evidenced by the performance metrics reported from the US mass retail environment. For the first quarter of fiscal 2026 (the three months ended May 31, 2025), the company noted a US point of sale dollar growth of 4.4% in the US mass channel. However, the prior quarter (Q4 FY2025) indicated challenges, with declines driven partly by 'lower replenishment orders from retail customers.'

Online marketplaces (e.g., Amazon)

Digital sales are a key growth area, though specific Amazon revenue splits aren't public. The company did report that for the fourth quarter of fiscal 2025 (ended February 28, 2025), there was an 'increase in online channel sales in the home category.'

Specialty retail stores (e.g., outdoor, beauty supply)

This category is captured within the segment reporting, though specific specialty store revenue is not isolated. The Home & Outdoor segment, which includes brands like Osprey, saw headwinds from a 'global outdoor slowdown in packs and accessories' in Q1 Fiscal 2025. Conversely, Osprey brand revenue growth was reported at 3.7% in Q1 Fiscal 2026, suggesting strength in its specialized outdoor distribution.

Direct-to-Consumer (DTC) e-commerce platforms

Helen of Troy Limited is actively growing its DTC presence, particularly with the recent acquisition of Olive & June. In the first quarter of fiscal 2026, DTC revenue growth was reported at 9% year-over-year. The company expects an incremental net sales contribution from Olive & June in the range of $26 million to $27 million for the second quarter of fiscal 2026.

Drug and grocery channels for Health & Wellness products

Distribution for Health & Wellness products, which includes thermometry and some beauty items, relies on these channels, though specific revenue percentages are not broken out. The Beauty & Wellness segment faced softness in areas like water filtration in Q3 Fiscal 2025. The outlook for Q3 Fiscal 2026 suggests a Beauty & Wellness net sales decline of 2.9% to growth of 1.0%, including the Olive & June contribution.

Here's a quick look at the consolidated revenue Helen of Troy Limited is moving through these channels:

• Net sales for the three months ended February 28, 2025 (Q4 FY2025) were $485.9 million.
• Net sales for the three months ended May 31, 2025 (Q1 FY2026) were $371.7 million.
• The outlook for the three months ending November 30, 2025 (Q3 FY2026) anticipates consolidated net sales revenue in the range of $491 million to $512 million.

The company's overall channel performance is summarized below:

Finance: draft Q4 FY2026 channel projection sensitivity analysis by Friday.

Helen of Troy Limited (HELE) - Canvas Business Model: Customer Segments

You're looking at the customer base for Helen of Troy Limited (HELE) as of late 2025. Honestly, the picture is a bit mixed, showing strength in some areas while others are feeling the pinch of a stretched consumer base.

The company serves distinct groups across its two main segments: Home & Outdoor and Beauty & Wellness. We see clear evidence of where they are winning and where they are facing headwinds, especially in the mass-market appliance space where softer demand is hitting hard.

Here's a breakdown of the key customer groups and some of the latest numbers we have, focusing on the performance leading into and projected for Fiscal Year 2026.

The core customer segments are:

• Home & Outdoor consumers seeking premium, functional housewares and gear
• Beauty & Wellness consumers focused on personal care and health monitoring
• Value-conscious consumers purchasing mass-market health appliances
• International consumers in key global markets (growing segment)
• Professional stylists and beauty enthusiasts (Hot Tools, Drybar)

The financial reality shows how these segments translate into revenue. For instance, in the third quarter of fiscal 2025, the Home & Outdoor segment brought in net sales revenue of $246.1 million, showing strength in its brands and international reach then. However, the Beauty & Wellness segment saw a decrease in the same period, impacted by a weak illness season. By the second quarter of fiscal 2026, the Beauty & Wellness segment posted net sales revenue of $223.1 million, though this included an expected incremental contribution from the Olive & June acquisition.

We can map out the financial focus across these groups:

The international customer base is definitely a bright spot, as evidenced by the 25.2% of total sales coming from international shipments in the first quarter of fiscal 2025. This growth was cited as a positive factor even when other areas struggled, like in the fourth quarter of fiscal 2025 where international sales helped offset declines in the insulated beverageware category.

For the Beauty & Wellness segment, the acquisition of Olive & June is clearly targeting the professional stylists and beauty enthusiasts. In the fourth quarter of fiscal 2025, this new brand contributed $23.0 million, which accounted for 8.7% of that segment's net sales revenue growth for the quarter. The company is banking on this brand to offset softness in other areas, like hair appliances, which saw declines due to softer consumer demand.

The value-conscious consumer, often targeted by health appliances under the Vicks or Braun umbrellas, is part of the group facing headwinds. The overall outlook for fiscal 2026 suggests a consolidated net sales decline of 8.8% to 6.7%, driven by factors like an increasingly stretched consumer base and a more promotional environment. Still, the company points to seven of its key categories growing or maintaining share in US measured channels through November of fiscal 2025, showing that specific product innovation is connecting with certain consumers.

Finance: draft 13-week cash view by Friday.

Helen of Troy Limited (HELE) - Canvas Business Model: Cost Structure

You're looking at the core expenses Helen of Troy Limited (HELE) is managing right now, especially after wrapping up major internal efforts. The cost structure is heavily influenced by product sourcing, brand investment, and the lingering financial impact of large-scale initiatives.

Cost of Goods Sold (COGS) for manufactured and sourced products is a major outflow. For the full fiscal year 2025, with consolidated net sales revenue at $1.908 billion, and a reported gross profit margin of 47.9%, the implied Cost of Goods Sold was approximately $994.1 million. Keep in mind that Project Pegasus savings were designed to hit this area hard, with an expected 60% of total profit improvements coming from reduced COGS.

The Selling, General, and Administrative (SG&A) expenses reflect significant investment in brand equity and operational overhead. The consolidated SG&A ratio for fiscal 2025 ended up at 35.9% of net sales revenue, up from 34.7% the prior year. A big driver here is marketing spend, which is crucial for supporting brands like OXO and Hydro Flask. Total advertising costs incurred in fiscal 2025 hit $134.8 million. Honestly, that reinvestment back into the brands is a key part of their strategy, even if it pressures the margin in the short term.

You can't look at the 2025 costs without accounting for the one-time charges from Project Pegasus. The company completed this global restructuring plan in the fourth quarter of fiscal 2025. This resulted in total pre-tax restructuring charges of $60.9 million. Furthermore, a significant non-cash hit was taken: a $51.5 million non-cash asset impairment charge in Q4 FY25, specifically to reduce the goodwill and trade name value of the Drybar business.

Here's a quick look at some of those key financial figures for the end of FY25:

Finally, debt servicing is a cost to factor in. As of the end of fiscal 2025 (February 28, 2025), total short- and long-term debt stood at $916.9 million. This higher debt load, partly due to funding acquisitions like Olive & June, naturally pushes up the interest expense. For the full fiscal year 2025, the expected interest expense was estimated to be in the range of $50.3 million to $51.7 million.

The cost structure is definitely showing the trade-off between operational efficiency gains (Project Pegasus savings) and strategic investment (higher marketing, acquisition costs). Finance: draft 13-week cash view by Friday.

Helen of Troy Limited (HELE) - Canvas Business Model: Revenue Streams

You're looking at how Helen of Troy Limited brings in its money as of late 2025. It's a mix of selling physical goods across its main divisions and getting income from brand agreements. Honestly, the revenue picture for the full fiscal year 2025 shows a slight contraction, but the underlying brand performance is what you really need to watch.

The top-line number for the entire operation for Fiscal Year 2025 was $\text{\$1.908 billion}$ in consolidated net sales revenue, which represented a $\text{4.9\%}$ decrease from the prior fiscal year. This revenue is primarily split between two major reporting segments, which give you a clearer view of where the sales pressure or strength is coming from.

Here's a look at the revenue composition based on the latest reported quarterly data available for FY2025, which helps illustrate the relative size of each stream:

The Home & Outdoor segment, featuring brands like OXO, Hydro Flask, and Osprey, showed some resilience, with Q3 sales at $\text{\$246.1 million}$ before dipping to $\text{\$219.8 million}$ in Q4. The Beauty & Wellness segment, which includes Vicks, Hot Tools, and Revlon, was larger in Q3 at $\text{\$284.6 million}$, but also saw a sequential drop to $\text{\$266.1 million}$ in Q4.

Beyond product sales, Helen of Troy Limited also generates revenue through agreements with other entities:

• Licensing revenue from out-licensed brands: You should note that as of the latest filings, one specific license agreement accounted for approximately $\text{10\%}$ of the total consolidated net sales revenue. No other single agreement reached that $\text{10\%}$ threshold.

The company is also focused on its own digital shelf presence. While a precise dollar figure for E-commerce sales from Direct-to-Consumer channels for the full Fiscal Year 2025 wasn't explicitly detailed in the latest summaries, this channel is an integral part of the overall sales strategy, supporting the brand visibility for Hydro Flask and OXO, for example. If onboarding takes 14+ days, churn risk rises, and that applies to getting your DTC strategy right, too.

Finance: draft $\text{13-week}$ cash view by Friday.