What Helen of Troy Ltd. told the SEC could break it.

Helen of Troy's revenue is concentrated in two big-box/e-commerce retailers — Amazon.com (~20%) and Walmart (~13%) together ~33% of consolidated net sales in fiscal 2026; reduced orders, shelf-space loss, margin demands or a dispute with either retailer would materially hurt revenue. (Both captured as named distribution edges; this records the aggregate concentration severity.)

“Worldwide sales to our largest customer, Amazon.com Inc., accounted for approximately 20 %, 22 % and 21 % of our consolidated net sales revenue in fiscal 2026, 2025 and 2024, respectively.”

With most production in China, Vietnam and Mexico, Helen of Troy is heavily exposed to escalating U.S. tariffs — IEEPA fentanyl (20%) and reciprocal tariffs that reached an aggregate additional 145% on Chinese imports (later eased to ~30%), a global 10% reciprocal tariff on Mexico/Vietnam/others, and Section 232 tariffs of 50% on aluminum, steel and copper components — raising its cost of goods and threatening margins.

“As of April 9, 2025, the U.S. had imposed (i) an aggregate additional 145% tariff on imports from China, consisting of a 20% Fentanyl IEEPA Tariff and 125% Reciprocal IEEPA Tariff and (ii) a global 10% Reciprocal IEEPA Tariff on imports from other countries including Mexico, Vietnam and other U.S. trading partners.”

Helen of Troy purchases a substantial amount of products from Chinese manufacturers in U.S. dollars, but those manufacturers source a significant portion of their labor and raw materials in Chinese Renminbi; RMB appreciation against the U.S. dollar (the average rate strengthened ~1% in fiscal 2026) raises the company's product costs, an indirect but material FX exposure.

“we purchase a substantial amount of our products from Chinese manufacturers in U.S. Dollars, who source a significant portion of their labor and raw materials in Chinese Renminbi. The Chinese Renminbi has fluctuated against the U.S. Dollar in recent years.”

Helen of Troy reported a fiscal 2026 consolidated operating loss of $782.1 million — (43.8)% of net sales — driven by $885.9 million of pre-tax asset-impairment charges (goodwill/intangibles) plus restructuring and CEO-succession costs, while relying on cash flow and borrowings under its Amended Credit Agreement to fund operations, capital spending, acquisitions and buybacks; the impairment and leverage heighten financial and covenant risk.

“Consolidated operating loss was $782.1 million, or (43.8)% of net sales revenue, compared to consolidated operating income of $142.7 million, or 7.5% of net sales revenue. Fiscal 2026 includes pre-tax asset impairment charges of $885.9 million”

Helen of Troy owns no manufacturing — all products are made by unaffiliated manufacturers, most located in China (which supplied ~57% of total finished goods purchased in fiscal 2026), Vietnam, Mexico and the U.S.; while no single vendor was >10% of product requirements in fiscal 2026, the heavy China sourcing concentration exposes it to supply disruption, cost and geopolitical risk.

“All of our products are manufactured by unaffiliated manufacturers, most of which are located in China, Vietnam, Mexico and the U.S. This concentration exposes us to risks associated with doing business globally, including changes in tariffs.”