The Estée Lauder Companies Inc. has announced a recast of its historical financial information to reflect the current geographic region structure. The company has reorganized its geographic regions, effective July 1, 2025, into four segments: The Americas, Europe, the United Kingdom and Ireland and Emerging Markets (EUKEM), Asia/Pacific, and Mainland China.
In the fiscal year 2025 and 2024, the company reported a 4% decrease in net sales for the three months ended September 30, 2025, compared to the same period in 2024. The operating income for the same period increased significantly, with The Americas reporting a 100+% change, while EUKEM and Asia/Pacific saw decreases of 100+% and 67% respectively.
For the three months ended December 31, 2024, the company reported a 6% decrease in net sales compared to the same period in 2023. The operating income saw a 100+% change, with The Americas reporting a significant decrease and EUKEM reporting an 80% increase.
Moving to the six months ended December 31, 2024, the company reported a 6% decrease in net sales compared to the same period in 2023. The operating income saw a 100+% change, with The Americas, EUKEM, and Asia/Pacific reporting a significant decrease.
For the three months ended March 31, 2025, the company reported a 10% decrease in net sales compared to the same period in 2024. The operating income for the same period saw a 27% decrease, with all regions reporting declines.
Looking at the nine months ended March 31, 2025, the company reported a 7% decrease in net sales compared to the same period in 2024. The operating income for the same period saw a 100+% change, with The Americas reporting a significant decline.
In the three months ended June 30, 2025, the company reported a 12% decrease in net sales compared to the same period in 2024. The operating income for the same period saw a 67% decrease, with all regions reporting declines.
For the year ended June 30, 2025, the company reported an 8% decrease in net sales compared to the same period in 2024. The operating income for the same period saw a 100+% change, with all regions reporting significant declines.
The press release also includes non-GAAP adjustments to reported operating income. These adjustments include returns/charges associated with restructuring and other activities, changes in fair value of DECIEM acquisition-related stock options, and other specific items.
As a global company, The Estée Lauder Companies Inc. acknowledges that fluctuations in foreign currency exchange rates can affect its results of operations. Therefore, it has presented certain net sales and operating results excluding the effect of foreign currency rate fluctuations to provide a framework for assessing the performance of its underlying business outside the United States.
The company has emphasized that the impact of non-GAAP financial measures may be highly variable and difficult to predict and that these measures may not be comparable to those used by other companies. Although the company finds non-GAAP financial measures useful in analyzing its results, they are not intended to replace or act as a substitute for any presentation included in the consolidated financial statements prepared in conformity with U.S. GAAP. Following these announcements, the company's shares moved 2.98%, and are now trading at a price of $88.77. For the full picture, make sure to review ESTEE LAUDER COMPANIES INC's 8-K report.
