EL PASO, Texas--(BUSINESS WIRE)--Feb. 5, 2014--
Helen of Troy Limited (NASDAQ:HELE), designer, developer and worldwide
marketer of brand-name houseware, healthcare/home environment and
personal care consumer products, today issued the following statement in
response to a letter it received from Sachem Head Capital Management LP
on February 4, 2014.
“Helen of Troy has a history of engaging in regular discussions with its
shareholders and is open to constructive input and feedback. Consistent
with this effort, over the past several months, the Company has had a
series of discussions with Sachem Head to understand their views.
“While Helen of Troy’s share price recently reached an all-time high,
the Company continues to believe that its shares are undervalued. The
Board of Directors remains confident in its current strategy to deliver
significant shareholder value, and has taken a series of actions
designed to position the Company for greater growth and profitability,
including the implementation of our CEO succession plan and a
significant reduction in executive compensation. The Board will continue
to evaluate additional opportunities to enhance long-term value for
shareholders, including the potential return of capital, when compared
to its current strategy.”
About Helen of Troy Limited
Helen of Troy Limited is a leading global consumer products company
offering creative solutions for its customers through a strong portfolio
of well-recognized and widely-trusted brands, including: Housewares:
OXO®, Good Grips®, Soft Works®, OXO tot® and OXO Steel®; Healthcare/Home
Environment: Vicks®, Braun®, Honeywell®, PUR®, Febreze®, Stinger®,
Duracraft® and SoftHeat®; and Personal Care: Revlon®, Vidal Sassoon®,
Dr. Scholl's®, Pro Beauty Tools®, Sure®, Pert®, Infusium23®, Brut®,
Ammens®, Hot Tools®, Bed Head®, Karina®, Ogilvie® and Gold 'N Hot®. The
Honeywell® trademark is used under license from Honeywell International
Inc. The Vicks®, Braun®, Febreze® and Vidal Sassoon® trademarks are used
under license from The Procter & Gamble Company. The Revlon® trademark
is used under license from Revlon Consumer Products Corporation. The Bed
Head® trademark is used under license from Unilever PLC. The Dr.
Scholl's® trademark is used under license from MSD Consumer Care, Inc.
For in-depth information about Helen of Troy, please visit www.hotus.com.
Forward Looking Statements
This press release may contain forward looking statements, which are
subject to change. The forward looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Any or all of the forward looking statements may turn out
to be wrong. They can be affected by inaccurate assumptions or by known
or unknown risks and uncertainties. Many of these factors will be
important in determining the Company’s actual future results.
Consequently, no forward looking statement can be guaranteed. Actual
future results may vary materially from those expressed or implied in
any forward looking statements. The forward looking statements are
qualified in their entirety by a number of risks that could cause actual
results to differ materially from historical or anticipated results.
Generally, the words "anticipates", "estimates", "believes", "expects",
"plans", "may", "will", "should", "seeks", "project", "predict",
"potential", "continue", "intends", and other similar words identify
forward looking statements. The Company cautions readers not to place
undue reliance on forward looking statements. The Company intends its
forward looking statements to speak only as of the time of such
statements, and does not undertake to update or revise them as more
information becomes available. The forward looking statements contained
in this press release should be read in conjunction with, and are
subject to and qualified by, the risks described in the Company’s Form
10-K for the year ended February 28, 2013 and in our other filings with
the SEC. Investors are urged to refer to the risk factors referred to
above for a description of these risks. Such risks include, among
others, the departure and recruitment of key personnel, the Company’s
ability to deliver products to our customers in a timely manner, the
Company’s geographic concentration of certain U.S. distribution
facilities, which increases our exposure to significant shipping
disruptions and added shipping and storage costs, difficulties
encountered during the transition to the Company’s new distribution
facility could interrupt the Company’s logistical systems and cause
shipping disruptions, the Company’s projections of product demand,
sales, net income and earnings per share are highly subjective and our
future net sales revenue, net income and earnings per share could vary
in a material amount from such projections, expectations regarding
acquisitions and the integration of acquired businesses, the Company’s
relationship with key customers and licensors, the costs of complying
with the business demands and requirements of large sophisticated
customers, the Company’s dependence on foreign sources of supply and
foreign manufacturing, the impact of changing costs of raw materials and
energy on cost of goods sold and certain operating expenses,
circumstances that may contribute to future impairment of goodwill,
intangible or other long lived assets, the risks associated with the use
of trademarks licensed from and to third parties, our dependence on the
strength of retail economies and vulnerabilities to an economic
downturn, the Company‘s ability to develop and introduce innovative new
products to meet changing consumer preferences, disruptions in U.S.,
European and other international credit markets, exchange rate risks,
trade barriers, exchange controls, expropriations, and other risks
associated with foreign operations, the Company’s debt leverage and the
constraints it may impose, the costs, complexity and challenges of
upgrading and managing our global information systems, the risks
associated with information security breaches, the risks associated with
tax audits and related disputes with taxing authorities, potential
changes in laws, including tax laws, and the Company’s ability to
continue to avoid classification as a controlled foreign corporation.
Source: Helen of Troy Limited
ICR, Inc.
Allison Malkin/Anne Rakunas
203-682-8200/310-954-1113
or
Sard
Verbinnen & Co
David Reno/Emily Deissler
212-687-8080