HOBOKEN, NJ. — The Hain Celestial Group, Inc.’s board of directors has initiated a strategic review of the business. The company also announced a leadership transition, with chief executive officer Wendy Davidson departing the company and Alison E. Lewis stepping in as interim president and CEO.

“In light of recent performance, the board has decided that a thorough evaluation of the company’s strategy and portfolio is warranted to determine the best approach to maximize shareholder value,” said Dawn Zier, chair of the board. “With this review underway, we remain focused on operating our business effectively, ensuring we have a strong path to achieve sustainable growth and value creation.”

The company has hired Goldman Sachs & Co. to assist with the review and said it will consider a “broad range of strategic options to enhance value.”

Lewis has been a member of Hain Celestial’s board of directors since September 2024. She has worked in the consumer packaged goods industry for 35 years, most recently as chief growth officer for the Kimberly-Clark Corp. from 2019 to 2024.

“Alison has a track record of driving superior in-market execution, delivering disciplined and profitable revenue growth, and leveraging innovation to create value,” Zier said.

The strategic review and leadership change came on the same day the Hain Celestial Group released its third-quarter financial results, which were not good.

For the quarter ended March 31 the company recorded a loss of $135 million, significantly greater than the loss the company recorded during the third quarter of fiscal 2024 of $48 million.

Quarterly sales fell to $390 million from $438 the year before.

“We are disappointed with our third-quarter results, which fell far short of our expectations primarily due to worse-than-expected performance in North America,” Lewis said. “Going forward, we are focused on five key drivers for improving value: simplifying our business and reducing overhead spending, accelerating renovation and innovation in our brands, implementing strategic revenue growth management and pricing actions, driving operational productivity and working capital reduction, and strengthening our digital capabilities.”

In North America, the company’s largest business unit, sales fell 17% to $222 million and organic sales fell 10%. Lower sales of snacks and baby and children’s food were cited as reasons for the sales decline.

Organic snack sales were down 13% during the quarter and driven by lower promotion effectiveness and category softness, according to the company. Organic baby and children’s sales were down 6% during the quarter and were impacted by lost business and stock-keeping unit rationalization.

“We are adjusting our outlook for the year based on the slower-than-anticipated volume recovery and the softening and volatile macroeconomic environment, coupled with increased investment in promotional activities to support our brands and drive incremental distribution,” said Lee Boyce, chief financial officer.