2023-03-09 11:23:05 ET
Helen of Troy ( NASDAQ: HELE ) dropped by a double-digit percentage on Thursday after the resignation of CFO Matt Osberg was announced.
Osberg is expected to depart the company effective April 27. Brian Grass, the now-retired former CFO will rejoin the company as interim CFO in his stead. He is expected to remain in the role until the fall when a search for a new, permanent CFO is expected to conclude.
Oppenheimer analyst Rupesh Parikh warned that the transition adds uncertainty on the execution front as the company seeks to navigate a difficult macroeconomic environment. Raymond James analyst Olivia Tong also called out the inopportune timing.
“The CFO transition comes at a difficult time for HELE, with management having already characterized FY24 as a transition year and the company in the midst of a restructuring program,” Tong commented. “HELE has been under pressure due to slower innovation and weaker macros, on top of inventory destocking and demand normalization post-COVID in its categories.”
Both Raymond James and Oppenheimer maintained Hold-equivalent ratings on the stock. Shares of Helen of Troy ( HELE ) fell over 15% at an intraday low before rebounding to about a 8.3% loss.
Read more on the details of the CFO search .
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Helen of Troy stock tumbles as the Street assesses CFO departure