Companies

Tariffs, Freight, and Volumes Squeeze Margins

The Tip Desk · October 19, 2026 · 2 min read

Helen of Troy, Oil-Dri, Village Super Market, and Ennis each described different margin pressures, from tariffs and freight to rebates, mix, and weak volumes.

Helen of Troy (HELE) said the remaining 4.7 percentage point decrease in consolidated operating margin for fiscal 2026 versus fiscal 2025 was attributable in part to the net unfavorable impact of higher tariffs on gross profit, increased outbound freight costs, and unfavorable operating leverage from lower net sales. In a January update, Home & Outdoor cited those same factors among the remaining 5.9 percentage point decrease in segment operating margin for the third quarter of fiscal 2026 versus the third quarter of fiscal 2025. Beauty & Wellness listed them among the remaining drivers of a 3.1 percentage point decrease in segment operating margin for fiscal 2026 versus fiscal 2025. In the second quarter of fiscal 2027 versus the second quarter of fiscal 2026, remaining operating margin increased 0.5 percentage point for Beauty & Wellness, with the company citing tariff refunds net of higher tariff costs and lower retail trade and promotional expense as favorable drivers, partially offset by other pressures.

Oil-Dri Corp of America (ODC) said gross margin fell to 28.5% in the six months ended January 31, 2026 from 30.7% a year earlier, mainly because softer volumes and higher costs produced unfavorable fixed-cost absorption, including a weather event that disrupted plant production and order fulfillment. Domestic per-ton manufacturing costs rose 6% in fiscal 2026, primarily from higher labor, materials, and depreciation, and per-ton transportation costs rose 3%, mainly from higher diesel costs and fourth-quarter trucking-market impacts, reducing consolidated gross profit.

Village Super Market (VLGEA) said gross profit as a percentage of sales fell to 28.17% in fiscal 2026 from 28.57% in fiscal 2025, due primarily to lower patronage dividends and other rebates from Wakefern, an unfavorable product-mix change, and increased promotional spending. Operating and administrative expense as a percentage of sales rose to 24.06% from 23.92%. Adjusted operating and administrative expense as a percentage of sales increased to 24.05% from 23.98%, due primarily to higher legal and other professional fees, utility, repair and maintenance costs, facility insurance costs, and store pre-opening costs.

Ennis (EBF) said margins remain under pressure from weak volumes in parts of the market, volatile input costs, and price competition, and that the only U.S. mill producing rolls of carbonless paper ceased production permanently, prompting buffer inventory and a transition to alternative suppliers.