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Helen of Troy (HELE) Crashes Amid Distribution Center Woes Hagens Berman
Globe Newswire 30-Jul-2024 5:46 PM
SAN FRANCISCO, July 30, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Helen of Troy Ltd. (NASDAQ:HELE) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
Helen of Troy Ltd. (HELE) finds itself under increased scrutiny regarding the progress of its restructuring plan, particularly the functionality of its recently opened distribution center in Galloway, Tennessee.
Company officials, including CEO Noel Geoffroy, had previously positioned the Tennessee facility, touted as "state-of-the-art," as a cornerstone of its strategy to achieve organic sales growth and margin expansion. Public statements, such as one on April 24, 2024, emphasized the distribution center's role in this plan.
However, questions arose on July 9, 2024, when Helen of Troy's Q1 2025 earnings report significantly disappointed investors. The company's organic net sales for Q1 2025 declined by 12.2% year-over-year, while its GAAP consolidated operating margin for the same period dropped to 7.4%, down from the previous year.
Management attributed the weak performance primarily to issues in the Home & Outdoor business segment. According to a company statement, "shipping disruptions at the Company's Tennessee distribution facility due to automation startup issues" negatively impacted "some of the segment's small retail customer and direct-to-consumer orders."
Furthermore, Helen of Troy lowered its 2025 net sales forecast, citing ongoing challenges at the Tennessee facility as a contributing factor. This news triggered a significant sell-off, with Helen of Troy's share price plummeting over 27% on July 9, 2024.
"The recent performance issues raise concerns about the transparency surrounding the Tennessee distribution center's capabilities," said Reed Kathrein, a partner at Hagens Berman, a law firm specializing in securities litigation." Kathrein added, "We are currently looking into whether investors were given an accurate picture of the potential risks associated with the new facility."
If you'd like more information about the Helen of Troy investigation, read more »
Whistleblowers: Persons with non-public information regarding Helen of Troy should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email HELE@hbsslaw.com.
About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
