CEO of Helens of Troy to step down amidst struggle with decreasing sales revenue
Helen of Troy Limited, a leading consumer goods company known for brands such as Vicks, OXO, and Hydro Flask, has released its fourth-quarter results and provided an update on its Project Pegasus turnaround plan.
The beauty and wellness segment saw a decline in net sales and operating income, with a 26.5% drop in sales to $272.7 million and a 19.4% decrease in operating income to $22.4 million. However, the home and outdoor segment showed positive growth, with net sales increasing by 0.5% to $211.9 million and operating income growing by 38.5% to $31.3 million.
Despite the decline in sales, CEO Julien Mininberg remains optimistic about the company's progress on Project Pegasus. He has not built a recession into the company's 2024 outlook, but expects pressure in the economy and a decrease in consumer spending in discretionary categories.
In line with Project Pegasus, the company announced a 10% global workforce reduction, with the majority of the job cuts completed by March 1, with the remaining to be completed by the end of fiscal 2024.
Helen of Troy expects to deliver $20 million in fiscal 2024 savings as a result of restructuring initiatives with Project Pegasus, but no new information on the expected decline in consolidated net sales for 2024 or the removal of Bed Bath & Beyond revenue from the outlook was provided.
For the fourth quarter, the company's core business and consolidated net sales declined by over 16% year over year, but increased compared to 2020. For the full fiscal year, Helen of Troy ended 2023 with decreases in both consolidated and core business net sales compared to 2022, and operating income decreased by about 22.3%.
Mininberg will be retiring in February 2024, with Noel Geoffroy, the current chief operating officer, taking over as CEO on March 1, 2024.
One of the highlights of the quarter was the strong performance of the recently acquired Olive & June, a nail care brand. The brand reported sales exceeding expectations and growing faster than the broader nail category. Olive & June was projected to generate $92 million in sales through major retail and direct-to-consumer channels in 2024.
For comprehensive and precise details on CEO succession, financial results in Q4 2023 and FY 2023, and the Project Pegasus turnaround plan, it is recommended to consult Helen of Troy’s official SEC filings, investor presentations, or press releases.
- The AI-driven business strategies of Helen of Troy Limited, including the Project Pegasus turnaround plan, will likely focus more on cost reduction, as indicated by the 10% global workforce reduction and the expected $20 million in savings in fiscal 2024.
- Despite the positive growth in the home and outdoor segment, the broader economy and consumer spending in discretionary categories are expected to put pressure on the finance sector of Helen of Troy Limited, as predicted by CEO Julien Mininberg in his outlook for 2024.
- The acquisition of Olive & June, a nail care brand, has proven to be a successful move for Helen of Troy Limited, with the brand reporting sales exceeding expectations and projected to generate $92 million in sales in 2024, contributing positively to the finance side of the company.
