Helen of Troy Class Action Lawsuit – HELE

Introduction

A securities class action has been filed against Helen of Troy Limited (NASDAQ: HELE) and certain of its current and former senior executives on behalf of investors who purchased Helen of Troy common stock between April 24, 2024, and October 8, 2025. The complaint, brought by the City of Atlanta General Employees’ Pension Plan, City of Atlanta Police Officers’ Pension Plan, and City of Atlanta Firefighters’ Pension Plan, alleges that defendants made materially false and misleading statements about the success and trajectory of the Company’s major restructuring initiative, Project Pegasus. According to the complaint, defendants repeatedly assured investors that Project Pegasus was "on track" and generating critical savings and efficiencies, while in reality the Company lacked sufficient resources and budget to achieve its stated restructuring goals. According to the complaint, the alleged misrepresentations were revealed through a series of disappointing financial disclosures that allegedly caused Helen of Troy’s stock price to suffer significant declines, including drops of 27.7%, 22.7%, and 25%.

Company Profile

Helen of Troy Limited is a consumer goods company headquartered in El Paso, Texas, that markets products across outdoor, beauty, and wellness segments. The Company’s common stock trades on the NASDAQ under the ticker symbol HELE, and as of January 2, 2026, Helen of Troy had approximately 23.1 million shares of common stock outstanding.

Class Period

April 24, 2024 – October 8, 2025

Investors who purchased Helen of Troy Limited (HELE) common stock during the Class Period may be eligible to seek recovery under the federal securities laws.

Allegations

The complaint alleges that Helen of Troy and its senior executives carried out a scheme to mislead investors about the effectiveness of Project Pegasus, a global restructuring program launched in fiscal year 2023 under then-COO Noel Geoffroy. Project Pegasus was designed to transform Helen of Troy from a holding company into a "true global operating company" by generating $75 million to $85 million in cost savings, improving operational efficiency, and providing "fuel" for reinvestment in the Company’s brands. Throughout the Class Period, defendants portrayed Project Pegasus as a cornerstone of the Company’s turnaround strategy, repeatedly assuring investors that the initiative was delivering on its promises despite the Company’s stagnating organic revenue growth and integration challenges from prior acquisitions.

According to plaintiffs, beginning with Defendant Geoffroy’s first earnings call as CEO on April 24, 2024, defendants consistently touted that Helen of Troy was "generating fuel from Project Pegasus" and was "advantageously positioned to fully leverage" its operational scale. On subsequent earnings calls in October 2024 and January 2025, Geoffroy stated that "Project Pegasus continues to be on track" and was "generating critical fuel for reinvestment," while Defendant Grass, the Company’s CFO, assured investors the Company expected to "expand gross margin year-over-year due to Project Pegasus" and that savings targets and cadence remained intact. At the ICR Conference in January 2025, Geoffroy told analysts that the Company was "seeing the fruits of that labor" and that additional productivity initiatives would be layered on top of Project Pegasus. As late as April 24, 2025, Geoffroy claimed the Company was "now operating with a more efficient foundation" and had "delivered the largest year of Project Pegasus savings."

The complaint alleges these statements were false or materially misleading because, at the time they were made, defendants knew or recklessly disregarded that Helen of Troy did not have enough resources or budget to achieve its stated restructuring or savings goals. Plaintiffs allege that given the importance of Project Pegasus to the Company’s business model, the adverse macroeconomic conditions during the Class Period, and the Company’s internal constraints, defendants’ repeated assurances that the initiative was "on track" lacked a reasonable basis. The complaint points to Geoffroy’s sudden departure after just 14 months as CEO, with the Company acknowledging it needed a replacement with "prior turnaround/restructuring experience," as a strong indicator that defendants were aware of the program’s fundamental shortcomings.

The Truth Emerges

According to the complaint, the truth about Project Pegasus’s alleged failure to deliver the touted efficiencies began to surface on July 9, 2024, when Helen of Troy reported first quarter fiscal 2025 results revealing that earnings per share had plummeted 49% year-over-year, to just $0.99. The Company slashed its full-year revenue outlook by more than 20%, attributing the shortfall to an "unusual number of internal and external challenges" that were delaying the long-awaited delivery of savings from its strategic plan. Despite this disclosure, defendants continued to assure investors over the following months that Project Pegasus remained "on track."

The picture deteriorated further on May 2, 2025, when Helen of Troy announced the sudden departure of CEO Noel Geoffroy, the architect of Project Pegasus, after only 14 months in the role and with no successor in place. The Company acknowledged Helen of Troy’s "underperformance in recent years" and stated that a candidate with "prior turnaround/restructuring experience" would be desirable. Then on July 10, 2025, the Company revealed that first quarter fiscal 2026 net sales had declined 11% year-over-year, adjusted earnings per share had shrunk nearly 60%, and announced a $414.4 million goodwill impairment. Interim CEO Brian Grass admitted that Helen of Troy had "become too complicated and lost focus," conceding the Company had grown "too matrixed, too slow, and at times disconnected from each other and the marketplace."

The final corrective disclosure came on October 9, 2025, when new CEO G. Scott Uzzell reported second quarter fiscal 2026 results showing quarterly sales down 8.9% year-over-year and adjusted earnings per share declining 51%. Uzzell acknowledged that the results reflected significant business disruptions and cost headwinds expected to persist for the remainder of the year, stating that Helen of Troy had "earned [its] way into a difficult period."

Market Reaction

According to the complaint, Helen of Troy’s stock price suffered severe declines as the alleged truth about Project Pegasus emerged. On July 9, 2024, following the disclosure of the 49% earnings decline and the 20%-plus reduction in revenue outlook, HELE shares fell $24.68 per share, a decline of 27.7%. The stock suffered another sharp drop on July 10, 2025, declining $7.04 per share, or 22.7%, after the Company revealed the 11% sales decline, the nearly 60% drop in adjusted earnings per share, and the $414.4 million goodwill impairment. On October 9, 2025, HELE shares fell an additional $6.90 per share, or 25%, following the disclosure of continued deteriorating financial performance and the new CEO’s acknowledgment that the Company had "earned [its] way into a difficult period." The complaint alleges that, as these disclosures removed prior artificial inflation from the stock price, investors who purchased Helen of Troy common stock during the Class Period suffered economic losses.

Next Steps

●       Lead Plaintiff Deadline: August 3, 2026

●       After the lead plaintiff deadline, the Court will consider any lead plaintiff motions

●       Defendants may file a motion to dismiss.

●       If the case proceeds, the Court may later consider class certification.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

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