Helen of Troy Filtration, Humidifier Shipments Delayed by EPA Compliance Issue

By Matt Grossman

Helen of Troy Ltd. said Thursday that regulatory issues surrounding claims on its packaging for filtration and humidifier products have delayed some shipments.

The El Paso, Texas-based company said it is in discussions with the U.S. Environmental Protection Agency about the compliance of packaging claims on some products sold under the company's health and home segment. Helen of Troy stopped some shipments on May 27 because of the issues, the company said.

The delays will cause an unfavorable revenue impact of $110 million to $135 million and an unfavorable adjusted earnings per share impact of 70 cents to $1 in Helen of Troy's results for the full fiscal year, the company said.

This week, Helen of Troy resumed shipments of some affected water-filtration products after the EPA approved modest changes to labeling claims. It is still working to resolve issues around packaging for air filtration and humidifier products.

In the fiscal first quarter, Helen of Troy recorded a $13.1 million charge related to the issue, the company said.

Write to Matt Grossman at [e-mail]

(END) Dow Jones Newswires

July 08, 2021 07:30 ET (11:30 GMT)

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