HELE investors sue as stock loses $38 a share on Project Pegasus failures

Helen of Troy Ltd. shareholders lost more than $38 a share across three corrective disclosures tied to its Project Pegasus restructuring, a securities class action lawsuit alleges.

"The pattern of repeated assurances followed by repeated negative surprises in this case raises important questions about what was known and when," Joseph E. Levi, a partner at Levi & Korsinsky, said.

The class action, filed in federal court, covers investors who bought Helen of Troy shares between April 24, 2024 and Oct. 8, 2025. Shares fell $24.68, or 27.7%, on July 9, 2024, after the company reported a 49% year-over-year earnings decline and slashed its full-year revenue outlook by more than 20%. A second decline of $7.04, or 22.7%, came on July 10, 2025, alongside an 11% net sales drop, a nearly 60% adjusted EPS plunge and a $414.4 million goodwill impairment. Shares fell another $6.90, or 25%, on Oct. 9, 2025, after the company disclosed an 8.9% quarterly sales decline and a 51% adjusted EPS drop.

The complaint alleges Helen of Troy made materially false statements about the progress of Project Pegasus, its global restructuring program, and the operational health of its Tennessee distribution center. The architect of the turnaround strategy departed after just 14 months with no successor in place, the company citing "underperformance in recent years." Investors must file by Aug. 3, 2026, to be considered for lead plaintiff.

The lawsuit compounds pressure on Helen of Troy as it searches for a new CEO with turnaround experience. The company's next quarterly report will test whether the operational issues that triggered the corrective disclosures have been resolved.

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