Helen of Troy provides expectations regarding Project Pegasus

The company previously announced a global restructuring plan intended to expand operating margins through initiatives designed to improve efficiency and reduce costs, collectively referred to as “Project Pegasus.” Project Pegasus includes multiple workstreams to further optimize the company’s brand portfolio, streamline and simplify the organization, accelerate cost of goods savings projects, enhance the efficiency of its supply chain network, optimize its indirect spending, and improve its cash flow and working capital, as well as other activities. The company anticipates these initiatives will create operating efficiencies, as well as provide a platform to fund future growth investments. The company continues to have the following expectations regarding Project Pegasus: Targeted annualized pre-tax operating profit improvements of approximately $75 million to $85 million, which the Company expects to substantially begin in fiscal 2024 and be substantially achieved by the end of fiscal 2026. Estimated cadence of the recognition of the savings will be approximately 25% in fiscal 2024, approximately 50% in fiscal 2025 and approximately 25% in fiscal 2026. Total profit improvements to be realized approximately 60% through reduced cost of goods sold and 40% through lower SG&A. Total one-time pre-tax restructuring charges of approximately $85 million to $95 million over the duration of the plan, which are expected to be substantially completed by the end of fiscal 2024 and will primarily be comprised of severance and employee related costs, professional fees, contract termination costs, and other exit and disposal costs. All of the company’s operating segments and shared services will be impacted by the plan.