Helen of Troy to Streamline Business Model with Reduction of 10% Global Staff
January 8, 2023
Trending News 🌥️
HELE Intrinsic Value – Helen ($NASDAQ:HELE) of Troy is a U.S. based publicly traded company specializing in consumer products and lifestyle brands. On Thursday, Helen of Troy announced that, as part of its Project Pegasus program, the company will be reducing its global staff by 10%. The company stated that in order to simplify the business, it will be consolidating the Beauty and Health & Wellness businesses into one segment, creating a single North America Regional Market Organization to handle regional sales, and centralizing many operational and finance functions. The consolidation of the two businesses is expected to streamline the company’s operations, improve cost efficiency, and allow for a better allocation of resources. Helen of Troy also noted that the reduction in staff will primarily affect non-management positions across the globe. The company has taken steps to minimize the impact on employees, including providing severance packages and outplacement services.
In addition, the company is offering assistance to those affected by the reduction in staff, such as career counseling and access to a library of career resources. Ultimately, Helen of Troy’s goal is to create a more efficient business model that allows for growth and success for the company’s brands and products. The company believes that the reorganization will help make that happen.
Market Price
Helen of Troy, the global consumer products company, recently announced their plan to streamline their business model with a reduction in 10% of their global staff. This decision has received mostly negative media sentiment. On Thursday, HELEN OF TROY opened at $110.0 and closed at $111.0, which was down by 1.4% from their previous closing price of 112.6. The decision to reduce their global staff is seen as a way to cut costs and reduce the burden on the company’s bottom line. This move is seen as a proactive measure to ensure the company’s long-term success and sustainability in an increasingly competitive market. It is also seen as a way to ensure that the company can remain competitive and can continue to develop innovative products and services that keep up with changing consumer tastes. Employees who are affected by the decision may experience a range of emotions, including shock, anger and frustration.
They may also experience financial difficulties due to the loss of income and may need to seek alternative employment opportunities. Helen of Troy’s shareholders and customers may also be affected by the decision as it could result in reduced profits and fewer product and service offerings. This could have a ripple effect that could impact the rest of the industry and could lead to an overall decline in consumer spending. Overall, Helen of Troy’s decision to reduce its global staff is seen as a necessary measure for the company’s long-term success. It will be interesting to watch how this decision affects the company, its employees, its shareholders, and its customers in the months to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for HELE. More…
| Total Revenues | Net Income | Net Margin |
| 2.17k | 146.89 | 7.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HELE. More…
| Operations | Investing | Financing |
| 195.4 | -738.06 | 543.65 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for HELE. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.13k | 1.67k | 60.73 |
Key Ratios Snapshot
Some of the financial key ratios for HELE are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.6% | -0.5% | 9.6% |
| FCF Margin | ROE | ROA |
| 0.6% | 9.1% | 4.2% |
VI Analysis – HELE Intrinsic Value Calculator
The VI app simplifies the analysis of the company, giving investors an easy way to assess their performance. According to the VI Line, the intrinsic value of HELEN OF TROY’s share is around $206.9. However, the current price of the stock is only $111.0, meaning that it is currently undervalued by 46%. HELEN OF TROY’s financials demonstrate its strength and stability. Its net income and cash flow have been steadily increasing over the past few years, and its balance sheet is strong with a healthy debt to equity ratio. This indicates that the company has solid fundamentals and is well-positioned for success in the future. Additionally, HELEN OF TROY has a healthy dividend yield, which further demonstrates its commitment to shareholder returns. Investors should take advantage of the current undervaluation of HELEN OF TROY’s stock and consider adding the stock to their portfolio. Despite the current market volatility, the company has strong fundamentals that should help it weather any storm. Its long-term prospects remain strong, and investors who are looking for a safe investment with a potential for long-term growth should consider HELEN OF TROY. More…
VI Peers
The Company is a leading designer, developer and marketer of consumer products sold under internationally recognized brand names such as OXO, Good Grips, OXO Steel, Hydrotherm, and Splendide. The Company’s products are distributed through a variety of channels, including mass merchandisers, home centers, grocery stores, drug stores, department stores, and e-commerce sites. The Company operates in two segments: Housewares and International Housewares. The Company’s competitors include Lykis Ltd, Taiyen Biotech Co Ltd, Aekyung Industrial Co Ltd, among others.
– Lykis Ltd ($BSE:530689)
Lykis Ltd is a publicly traded company with a market capitalization of 763.38 million as of 2022. The company has a return on equity of 18.71%. Lykis Ltd is engaged in the business of providing engineering and construction services. The company has a strong presence in the Asia-Pacific region.
– Taiyen Biotech Co Ltd ($TWSE:1737)
Taiyen Biotech Co Ltd is a pharmaceutical company that develops, manufactures, and markets prescription drugs and over-the-counter medicines. The company has a market cap of 6.01B as of 2022 and a Return on Equity of 4.56%. Taiyen Biotech Co Ltd was founded in Taiwan in 1984 and has since expanded its operations to China, Hong Kong, and Macau. The company’s products include antibiotics, anti-fungals, antivirals, and anti-inflammatories.
– Aekyung Industrial Co Ltd ($KOSE:018250)
Aekyung Industrial Co Ltd is a large conglomerate based in South Korea with a market cap of 283.07B as of 2022. The company has a Return on Equity of 3.54%. Aekyung Industrial Co Ltd is involved in a wide range of businesses including chemicals, petrochemicals, oil refining, construction, and retail.
Summary
Helen of Troy is a leading global consumer products company with a wide range of products and brands. The company recently announced plans to streamline its business model and reduce global staff by 10%, a move that has sparked mixed reactions from the investment community. While some analysts view the move as a necessary step to improve profitability, others worry about the impact on the company’s competitive advantage and long-term growth prospects.
The company’s stock has been volatile since the announcement, with short-term market sentiment generally negative. Long-term investors are keeping a close eye on the company’s progress to assess its ability to navigate through these changes and maintain its competitive advantage.
