01:39 PM EDT, 07/10/2025 (MT Newswires) -- Helen of Troy (HELE) shares sank Thursday as the consumer products company issued a downbeat second-quarter outlook amid uncertainty around tariffs, which dented first-quarter revenue by more than expected.

The Hydro Flask maker anticipates reporting adjusted per-share earnings of $0.45 to $0.60, which it said implies a year-on-year plunge of about 50% to 63%. It expects net sales in the range of $408 million to $432 million, indicating an 8.9% to 14% drop from a year earlier. Five analysts polled by FactSet expect EPS excluding extraordinary items of $1.14 on revenue of $470.2 million.

Net sales dropped 11% annually to $371.7 million during the three-month period ended May 31, while analysts expected $395.7 million. Adjusted EPS fell to $0.41 from $0.99, below the consensus estimate of $0.85.

Shares of the company tumbled 22% intraday.

"Our (first-quarter) results were well below our expectations," interim Chief Executive Brian Grass said at an earnings call, according to a FactSet transcript. "Tariff-related disruption on our shipments was greater than we originally expected in April."

Tariff-related impacts contributed around 8 percentage points to the nearly 11% revenue decline, he said.

As global trade policies continue to evolve, the company said it can provide guidance only for the ongoing quarter. "The company is continuing to assess the incremental tariff cost exposure in light of continuing changes to global tariff policies and the full extent of its potential mitigation plans, as well as the associated timing to implement such plans," it said in a statement.

The company expects to reduce the net tariff impact on operating income to less than $15 million. President Donald Trump has sent letters to several US trading partners outlining new tariff rates that are scheduled to come into effect on Aug. 1.

"In addition to the tariff-related impacts, we also saw weeks of supply adjustment at certain key retailers and shifting consumer demand curves are being reflected in retailers' inventory management practices," Grass said. "Finally, we're seeing clear evidence of the consumer trading down with average price compression of 3% to 4% in our US business, which impacted first-quarter revenue and profitability."

Revenue in the home and outdoor segment fell 10% year on year to $178 million, while beauty and wellness sales dropped 11% to $193.7 million.

"The decrease in home and outdoor net sales was primarily driven by tariff-related impacts, which we believe are largely transitory over time, but are expected to persist into the second quarter," Grass said. "The (beauty and wellness) segment sales decline was driven primarily by similar direct import cancellations, tariff-related pull forward by retailers in the fourth quarter of last year, and softer point-of-sale internationally, driven in part by cascading impacts of trade policy in the China market."

Price: 24.20, Change: -6.81, Percent Change: -21.95