Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, July 02, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Lamb Weston Holdings, Inc. (“Lamb Weston” or the “Company”) (NYSE: LW) investors that a class action has been filed on behalf of investors. Lamb Weston investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
On April 4, 2024, Lamb Weston reported financial results for its fiscal third quarter 2024 and disclosed significant problems with its transition to its new Enterprise Resource Planning (“ERP”) software system, which had been designed to interface with the most important aspects of Lamb Weston’s business and operations, including, among other things, inventories and customer order shipments. The system did not function properly, causing the Company to lose over $130 million in sales during its third quarter of fiscal 2024 and reduce its sales guidance for the full fiscal year by $330 million, at the midpoint. The unsuccessful ERP transition resulted in “reduced visibility into finished goods inventories at distribution centers,” which negatively impacted the Company’s ability to fulfill customer orders, resulting in shipment delays and cancelled orders. In total, the ERP transition negatively impacted Lamb Weston’s net sales by $135 million, net income by $72 million, and adjusted EBITDA by $95 million, with more than half of that due to lower sales and unfulfilled customer orders and the remainder due to incremental costs and expenses directly related to the ERP transition. For the third quarter of fiscal 2024, the Company also reported a 17% decline in sales volumes in North America year-over-year, more than half of which Lamb Weston attributed to the ERP transition. Lamb Weston also reduced its financial outlook for fiscal 2024, including a $330 million reduction to its sales guidance, at the midpoint. Lamb Weston disclosed that it expected its sales volumes in the fourth quarter to be negatively impacted by some customers in North America that were affected by the botched ERP transition, as those customers sought supply from Lamb Weston’s competitors.
On this news, Lamb Weston’s stock price fell $19.59 per share, or 19.4%, to close at $81.53 per share on April 4, 2024.
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Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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