Helen of Troy Ltd. announced that its Board of Directors has authorized the repurchase of $500 million of its outstanding common shares in keeping with its stated intention to return to shareholders capital not otherwise used for core business growth or strategic acquisitions.
The authorization was approved as part of the Board’s regular process of reviewing the company’s capital allocation and existing authorization. It is effective August 25, 2021, for a period of three years and replaces Helen of Troy’s existing repurchase authorization of which approximately $79.5 million remained at the time the new authorization was approved.
Helen of Troy may purchase shares on a discretionary basis from time to time through open market purchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The timing and amount of any transaction will be subject to the discretion of Helen of Troy and may be based upon market conditions and other opportunities that Helen of Troy may have for the use or investment of its capital. The repurchase program does not require the purchase of any minimum number of shares and may be implemented, modified, suspended, or discontinued in whole or in part at any time without further notice.
In total, the $500 million share repurchase authorization represents approximately 9 percent of the company’s outstanding common stock, based upon the company’s closing price on August 25, 2021. As of August 25, 2021, Helen of Troy had approximately 24.1 million shares outstanding.
Julien R. Mininberg, CEO, said: “A key element of our success in delivering significant long-term value creation for our shareholders has been our balanced capital allocation strategy. We believe the cash flow generation of our business, coupled with our strong financial position, will allow us to continue to reinvest in our value creation flywheel, while simultaneously making strategic acquisitions and opportunistically returning capital to shareholders. Today’s share repurchase authorization reaffirms the confidence from Helen of Troy’s management and Board in our long-term growth outlook, as well as our financial strength, as we continue to execute Phase II of our Transformation Plan.”
Helen of Troy Ltd.’s brands includes OXO, Hydro Flask, Vicks, Braun, Honeywell, PUR, Hot Tools, and Drybar.