Helen of Troy Limited’s (HELE) new Chief Executive Officer (CEO), Julien R. Mininberg has been appointed to its Board of Directors effective immediately. Mininberg will serve the board until the next annual shareholders’ meet. The consumer products company appointed Mininberg as CEO and President in Mar 2014 to replace former CEO Gerald J. Rubin. Management plans to nominate him as a director during the meeting.
Mininberg, a Yale MBA, has been associated with the company since 2006 and therefore has in-depth understanding of the business segments. Having served as the president and CEO of Helen’s Kaz and PUR’s division for three years, he also has the requisite leadership qualities. In his illustrious career, Mininberg has also served 15 years in general management and marketing at Procter & Gamble Company (PG).
Mininberg is expected to employ better strategies and take Helen of Troy to newer heights in the changing demand scenario. The company estimates a charge of approximately 50 cents per share in the fourth quarter of fiscal 2014 due to payments to be made under Rubin’s employment agreement. However, the company expects to realize net savings of 92 cents per share reflecting the new CEO’s compensation in fiscal year 2015.
On Jan 10, 2014, Helen of Troy posted better-than-expected third-quarter fiscal 2014 earnings of $1.16 per share, which beat the Zacks Consensus Estimate of $1.09 by 6.4% as unfavorable foreign exchange translation was more than offset by higher revenues and operating income. However, earnings were lower than year-ago results by 1.6% due to higher cost of sales.
Other Stocks to Consider
Helen of Troy currently sports a Zacks Rank #1 (Strong Buy). Other consumer staples stocks worth considering are Diamond Foods Inc. (DMND) and Unilever plc (UL). All these stocks carry a Zacks Rank #2 (Buy).