The Estée Lauder Companies Inc. has recently restructured its geographic region reporting structure, resulting in changes to its historical financial information. The company's four geographic regions, effective July 1, 2025, are The Americas, Europe, the United Kingdom and Ireland and Emerging Markets ("EUKEM"), Asia/Pacific, and Mainland China.
For the fiscal year 2025, the company reported net sales of $3,361 million for The Americas, representing a 2% decrease from the previous year, and an operating loss of $15 million, which had significantly improved from a loss of $17 million in the prior year. In the same period, EUKEM reported net sales of $868 million, reflecting a 5% increase from the previous year, with an operating income of $100 million, a significant decrease from the prior year's $130 million. Meanwhile, Asia/Pacific reported net sales of $806 million, down by 11% from the previous year, and an operating income of $112 million, down from $149 million in the prior year.
In Mainland China, the company reported a 14% decrease in net sales to $490 million, and a significant operating loss of $41 million, compared to the prior year's loss of $1 million.
The company also made non-GAAP adjustments to its operating income, with returns/charges associated with restructuring and other activities amounting to $106 million in The Americas, and $159 million related to Talcum litigation settlement agreements.
For the three months ended December 31, 2025, the company reported a 6% decrease in net sales to $4,004 million, with an operating loss of $399 million, compared to an operating income of $582 million in the previous year. Non-GAAP adjustments included $181 million related to returns/charges associated with restructuring and other activities, and $861 million in goodwill and other intangible asset impairments.
For the six months ended December 31, 2025, the company reported a 6% decrease in net sales to $7,365 million, with an operating loss of $414 million, compared to an operating income of $682 million in the prior year. Non-GAAP adjustments included $287 million related to returns/charges associated with restructuring and other activities, $861 million in goodwill and other intangible asset impairments, and $159 million related to Talcum litigation settlement agreements.
In the nine months ended March 31, 2026, the company reported a 7% decrease in net sales to $10,915 million, with an operating loss of $11 million, compared to an operating income of $1,231 million in the prior year. Non-GAAP adjustments included $384 million related to returns/charges associated with restructuring and other activities, $861 million in goodwill and other intangible asset impairments, and $159 million related to Talcum litigation settlement agreements.
For the year ended June 30, 2026, the company reported an 8% decrease in net sales to $14,326 million, with an operating loss of $299 million, compared to an operating income of $1,094 million in the previous year. Non-GAAP adjustments included $486 million related to returns/charges associated with restructuring and other activities, $911 million in goodwill and other intangible asset impairments, and $159 million related to Talcum litigation settlement agreements.
Following these announcements, the company's shares moved 2.71%, and are now trading at a price of $88.54. For the full picture, make sure to review ESTEE LAUDER COMPANIES INC's 8-K report.
