Helen of Troy Limited (HELE) Investigation

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.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the HELE investigation about?

The recent performance issues raise concerns about the transparency surrounding the Tennessee distribution center’s capabilities; we are currently looking into whether investors were given an accurate picture of the potential risks associated with the new facility.

WHAT SHOULD I DO?

I worked at HELE. What should I do?

If you were an employee of HELE, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in HELE, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any HELE investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.