Hain Celestial (HAIN) Stock: Shares Plunge 18% After Weak Q1 Sales and Guidance

TLDR

Q1 revenue dropped 11% year on year, missing estimates by 4.7% Adjusted EPS fell 44.5% below Wall Street forecasts Operating margin turned negative at -31%, down sharply from last year Organic revenue declined 5.3%, marking continued weakness in North America Shares fell 18% pre-market to $2.25 after disappointing results and guidance

Hain Celestial (NASDAQ: HAIN) stock plummeted 18% to $2.25 in pre-market trading on May 7, following disappointing fiscal Q1 2025 results. 

Hain Celestial (HAIN) 

The natural food company reported revenue of $390.4 million, down 11% year on year and below Wall Street’s estimate of $409.4 million. The stock had already closed lower at $2.77 on May 6 but dropped further after missing across key metrics.

The company posted non-GAAP earnings of $0.07 per share, falling 44.5% short of analysts’ $0.13 target. Adjusted EBITDA also missed by 20.6%, coming in at $33.6 million. Hain Celestial issued weak guidance, expecting full-year EBITDA of $125 million at the midpoint, below the $150 million forecast by analysts.

Sales Slump and Margin Pressure

Revenue weakness was driven by underperformance in North America, while international sales showed modest organic growth. Organic revenue dropped 5.3% year on year, a sharper decline than last year’s 3.7% fall. CEO Alison Lewis acknowledged the challenges, stating, “We are disappointed with our third-quarter results, which fell far short of our expectations primarily due to worse-than-expected performance in North America.”

$HAIN Appointments:

On May 7, 2025, Hain Celestial announced the departure of CEO Wendy P. Davidson effective May 6, 2025, appointing Alison E. Lewis as Interim CEO, and reported financial results for Q3 ending March 31, 2025.https://t.co/j33i45kHSN

— SEC Filings Digest (@USCorpFilings) May 7, 2025

Operating margin collapsed to -31% from 6.9% a year ago, signaling significant margin pressure. Free cash flow turned negative at -$2.28 million, compared to positive $30.2 million last year, highlighting deteriorating financial health.

Three-Year Sales Weakness Continues

Over the past three years, Hain Celestial’s sales have fallen by an average of 5% annually, underperforming the consumer staples sector. Its recent revenue decline adds to a string of weak quarters. Over the next 12 months, analysts expect only 1.4% revenue growth, suggesting that a meaningful recovery is not imminent.

Despite operating in over 75 countries with brands spanning snacks, teas, and baby food, Hain Celestial has struggled to stabilize demand. The company has faced growing competition and changing consumer preferences, which have weighed on both sales and margins.

Stock Performance Lags

Hain Celestial’s market capitalization now stands at just $250 million, reflecting sharp erosion in shareholder value. The stock’s year-to-date return has lagged, and its three-year sales and margin trends raise concerns about long-term competitiveness.

The company’s weak Q1 results and lowered guidance triggered the steep sell-off, with shares down nearly 19% in pre-market action. Investors are likely to remain cautious until the company demonstrates clearer signs of stabilization and growth.

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