![]() The hedge fund said some of the company’s brands - a group that includes First Response, Nair, Spinbrush, OxiClean and Vitafusion - face severe margin pressure because of their reliance on Walmart for 23% of sales and on struggling brick-and-mortar channels like Ulta, Bed, Bath & Beyond and discount stores for much of the remainder. It wasn’t immediately clear whether Spruce Point is shorting Church & Dwight’s stock, but the firm was recognized by Activist Insight as last year’s second-most successful short-selling activist. Shares of Church & Dwight, which also owns Waterpik and Nair, fell close to 4% in midday trading. The hedge fund noted that Church Dwight, based in Ewing Township, NJ, deemed last year’s performance to be worth a special 15% bonus to employees and management, which Spruce called “a complete charade in light of collapsing margins, failed deals, subtle accounting changes, and numbers that don’t add up.” “As discussed and documented, we believe management is hyper promotional, potentially deceptive and highly aggressive at inflating the financials to maximize its self-interested compensation objectives,” the hedge fund said in the 92-page report.Īs a result, the short seller continued, investors in the consumer staples company now face up to 50% slide in Church & Dwight’s stock price of $76.50 per share. ![]() “Six out of ten of its ‘Power Brands’ acquired pre-2017 are struggling or outright failures,” according to the 10-year-old investment firm founded by Ben Axler. Meanwhile, the Arm & Hammer maker’s acquisition strategy has been “failing” since well before Farrell took the CEO job, Spruce Point said - citing problems with the condoms, sex toys, hair growth and rectal cream businesses. Matt Farrell, head of Church & Dwight Co., has been focused more on “financial engineering” than growing the products company he took over in 2016, hedge fund Spruce Point Capital Management claimed in a report Thursday. The CEO of the maker of Trojan condoms has “rigged” the company’s financials using acquisitions in order to line his own pockets, a new report from a hedge fund short seller claims. Man dies after having sex using epoxy adhesive instead of a condom Olympic gold medalist: I eavesdropped on fellow athletes having sex ![]() Vermont now requires free condoms in public middle and high schoolsĬalifornia makes it illegal to remove condom without consent ![]()
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