Helen of Troy Forecasts EPS Plunge to $0.02, Overhauls Supply Chain After Lawsuit
HELE•Helen of Troy’s Q2 EPS are projected to plunge to $0.02 from $0.41 on $374.55 million in revenue. A securities class action over concealed Project Pegasus failures, which sparked a 27.7% stock drop, has spurred a supply-chain overhaul targeting sub-20% China sourcing by 2027.
1. Earnings Forecast and Revenue Outlook
Helen of Troy is scheduled to report Q2 results on July 8, 2026, with earnings per share expected to fall to $0.02 from $0.41 a year ago on revenue of $374.55 million, up marginally from $371.65 million.
2. Securities Class Action Over Project Pegasus
A pending securities class action alleges that the company concealed operational failures linked to its Project Pegasus initiative, which previously triggered a 27.7% share price collapse after disappointing results.
3. Supply-Chain Restructuring Plan
The company has launched a supply-chain overhaul aimed at tariff mitigation and improved margins, targeting a reduction of China-based manufacturing to under 20% of total sourcing by 2027.
4. Financial Risk Profile
With a debt-to-equity ratio of 1.04, the company carries slightly more debt than shareholder equity, a metric that underscores financial leverage as it navigates these operational and legal challenges.
