ESTEE LAUDER COMPANIES INC. has recently released its 10-Q report, providing a detailed look into the company's financial condition and operations. The company, founded in 1946, is a global leader in manufacturing, marketing, and selling skin care, makeup, fragrance, and hair care products under over 20 luxury and prestige brands. Its products are sold in approximately 150 countries and territories through various channels, including department stores, online platforms, and direct-to-consumer business.
In the three months ended September 30, 2025, ESTEE LAUDER COMPANIES INC. reported net sales of $3,481 million, representing a 4% increase from the same period in 2024. The gross profit for the period was $2,554 million, accounting for 73.4% of net sales. Operating income for the period was $169 million, a significant improvement from the operating loss of $121 million in the same period last year.
The net sales by product category in the three months ended September 30, 2025, were as follows: Skin Care: $1,575 million Makeup: $1,030 million Fragrance: $721 million Hair Care: $129 million * Other: $25 million
The operating income by product category in the same period was as follows: Skin Care: $187 million Makeup: ($15) million Fragrance: $86 million Hair Care: ($12) million * Other: $9 million
ESTEE LAUDER COMPANIES INC. also discussed its non-GAAP financial measures, including the impact of foreign currency exchange rates on its results of operations. The company uses these measures to evaluate its operating performance and believes that excluding certain items helps investors compare operating performance between periods.
The company provided an outlook, acknowledging the challenges within its business and expecting volatility and uncertainty to continue. It mentioned signs of stabilization in Mainland China but highlighted weak travel retail conversion and challenges in Western Europe and the United States. ESTEE LAUDER COMPANIES INC. also discussed its long-term strategy, including the "Beauty Reimagined" vision and the Profit Recovery and Growth Plan (PRGP), which includes a restructuring program aimed at rebuilding profit margins.
In connection with the restructuring program, the company estimated a net reduction of approximately 5,800 to 7,000 positions globally, representing about 9-11% of its positions. The restructuring program is expected to result in charges totaling between $1,200 million and $1,600 million, before taxes, with anticipated annual target gross benefits of between $800 million and $1,000 million.
The 10-Q report provides a comprehensive overview of ESTEE LAUDER COMPANIES INC.'s financial performance, strategic initiatives, and outlook, offering valuable insights for investors and stakeholders. The market has reacted to these announcements by moving the company's shares -1.42% to a price of $97.36. For the full picture, make sure to review ESTEE LAUDER COMPANIES INC's 10-Q report.
