Helen of Troy shareholders approve board, executive pay

In a recent 8-K filing with the Securities and Exchange Commission, Helen of Troy Limited (NASDAQ: HELE), the electric housewares and fans manufacturer, announced the outcomes of its Annual General Meeting held on August 21. Shareholders voted on three key proposals, including the election of directors, an advisory vote on executive compensation, and the ratification of the company's auditor.

The election of directors saw all nine nominees successfully elected to serve on the company's Board until the next annual meeting. The voting results for each director varied, with Noel M. Geoffroy receiving 20,418,357 votes for, 401,764 against, and 80,122 abstentions.

The other nominees received similar support, with the number of votes for each exceeding those against or abstained, and broker non-votes totaling 883,745 for each nominee.

In the advisory vote on executive compensation, shareholders expressed their approval with 18,977,730 votes for, 1,864,752 against, and 57,761 abstentions. This non-binding vote indicates shareholder satisfaction with the company's approach to compensating its named executive officers.

Additionally, the appointment of Grant Thornton LLP as the company's auditor and independent registered public accounting firm was ratified. The authorization for the company's Audit Committee of the Board to set the auditor's remuneration was also approved, with 21,396,384 votes for, 227,934 against, and 159,670 abstentions.

In other recent news, Helen of Troy faced significant fiscal challenges. The company's first-quarter earnings and revenue results for the fiscal year 2025 fell short of expectations, leading to a nearly 20% reduction in its earnings per share forecast.

In response, DA Davidson downgraded Helen of Troy's stock from Buy to Neutral, and reduced the shares target to $67 from the previous $139. The firm also adjusted its fiscal year 2025 earnings per share estimate downwards by 19%.

Likewise, UBS and Canaccord Genuity adjusted their outlooks for Helen of Troy. UBS revised its price target down to $72 from $100, maintaining a neutral stance, while Canaccord Genuity reduced its target to $84 from $137, but retained a buy rating. These adjustments were triggered by the company's first-quarter performance, which fell below market expectations.

Despite these challenges, Helen of Troy remains committed to strategic brand-building, marketing, and infrastructure improvements. The company's management has signaled that this fiscal year will be a "reset year," with a shift in focus towards brand building and business restructuring.

InvestingPro Insights

Amidst the backdrop of Helen of Troy Limited's Annual General Meeting, shareholders might be interested in recent financial metrics and analyst insights. According to InvestingPro data, Helen of Troy Limited boasts a market capitalization of $1.22 billion, a testament to its significance in the consumer products sector. The company's P/E ratio stands at a modest 8.26, suggesting that its stock could be undervalued relative to near-term earnings growth — an InvestingPro Tip that highlights the potential for investment value. This is further supported by the company's PEG Ratio for the last twelve months as of Q1 2025, which is under 1 at 0.94, indicating the stock may be undervalued based on its earnings growth.

Despite a challenging environment reflected by a revenue decline of 4.51% over the last twelve months as of Q1 2025, the company maintains a strong gross profit margin of 48.07%. Additionally, Helen of Troy's liquid assets exceed its short-term obligations, providing financial stability — a crucial InvestingPro Tip for shareholders considering the company's liquidity and risk profile. Furthermore, with the company's stock price having fallen significantly over the last year, this might be an opportune moment for investors to consider Helen of Troy, especially as management has been aggressively buying back shares, signaling confidence in the company's future.

For investors seeking more comprehensive analysis, InvestingPro offers additional tips on Helen of Troy Limited, which can be accessed at https://www.investing.com/pro/HELE. These insights could be valuable for shareholders and potential investors as they evaluate the company's performance in light of the recent shareholder meeting outcomes.

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