Bragar Eagel & Squire, P.C. has issued a notice to shareholders of Helen of Troy Limited (NASDAQ: HELE), urging them to participate in a pending securities class action lawsuit filed in the United States District Court for the Western District of Texas. Investors who purchased or acquired shares between April 24, 2024, and October 8, 2025, have until August 3, 2026, to file a motion for lead plaintiff status. The lawsuit alleges that the company and certain officers, including CEO Noel Geoffroy, made materially false and misleading statements regarding its global restructuring initiative, Project Pegasus, specifically concerning its ability to achieve projected savings despite internal budget constraints.

Allegations of Misleading Statements

The complaint asserts that throughout the class period, Helen of Troy touted "fuel" generated from Project Pegasus for reinvestment. Defendants allegedly assured investors that despite "implementation hiccups" with a new Tennessee distribution center, the project continued to move forward. However, the lawsuit claims these assurances were false because the company lacked the necessary resources and budget to achieve the projected savings. The complaint alleges that internal constraints and external macroeconomic conditions made the targets unachievable, yet management characterized the project as "on track."

Financial Impact and Market Reaction

The alleged discrepancies surfaced through negative financial disclosures starting on July 9, 2024. On that date, Helen of Troy reported a 49% year-over-year decline in earnings per share for the first quarter of 2025 and reduced its full-year revenue outlook by more than 20%. Following this disclosure, the company's share price declined by $24.68 per share, or 27.7%. Subsequent disclosures revealed further deterioration. On July 10, 2025, net sales fell 11% year-over-year while adjusted earnings per share dropped nearly 60%. The company also announced a $414.4 million goodwill impairment. On this news, the price of Helen of Troy stock fell nearly 23%. By October 9, 2025, quarterly sales declined 8.9% year-over-year and adjusted earnings per share fell 51%, with warnings that business disruptions would persist. On this news, the price of Helen of Troy stock fell 25%.

Investor Rights and Next Steps

Under the Private Securities Litigation Reform Act of 1995, eligible investors may seek appointment as lead plaintiff. Institutional investors, including pension funds and mutual funds, are encouraged to assess whether participation serves the interests of their beneficiaries. There is no cost or obligation to contact the firm. Investors can contact Bragar Eagel & Squire partners Brandon Walker or Melissa Fortunato at investigations@bespc.com or (212) 355-4648.

What the Numbers Show

The combination of persistent revenue declines and significant goodwill impairments suggests that the market is pricing in long-term structural issues rather than temporary operational hiccups. The nearly 60% drop in adjusted earnings per share in Q1FY26, coupled with a $414.4 million impairment, indicates that Project Pegasus has failed to deliver the expected efficiency gains, leading to substantial write-downs and eroding shareholder value.

UBS analyst Peter Grom has maintained a Neutral rating on Helen Of Troy (NASDAQ: HELE) while raising the price target to $28 from the previous $25. The adjustment reflects a revised outlook on the stock's valuation potential.

Rating and Price Target Details

The research note confirms the Neutral stance, suggesting the stock is expected to perform in line with the broader market. The price target increase indicates a revised upside from current levels based on the firm's analysis.