The Estée Lauder Companies Inc. has recently released its 10-Q report, showcasing its financial performance for the three and six months ended December 31, 2025. The company, founded in 1946 and headquartered in New York, is a leading manufacturer, marketer, and seller of skin care, makeup, fragrance, and hair care products globally. It operates over 20 luxury and prestige brands and sells its products through various channels, including department stores, online platforms, and direct-to-consumer businesses.
In the three months ended December 31, 2025, the company reported net sales of $4.23 billion, marking a 5.6% increase from the same period in 2024. For the six months ended December 31, 2025, net sales amounted to $7.71 billion, up 4.7% from the prior year. The company's gross profit for the three months ended December 31, 2025, was $3.24 billion, representing a gross margin of 76.5%.
The net sales by product category for the three months ended December 31, 2025, were as follows: skin care products accounted for $2.05 billion, makeup products for $1.16 billion, fragrance products for $812 million, and hair care products for $168 million. By geographic region, sales in the Americas totaled $1.22 billion, in Europe, the UK, Ireland, and Emerging Markets (EUKEM) $1.18 billion, and in Asia/Pacific $900 million.
The company reported an operating income of $401 million for the three months ended December 31, 2025, compared to an operating loss of $580 million in the same period in 2024. The operating income by product category for the same period was led by skin care products with $454 million, followed by makeup with $18 million, fragrance with $105 million, and hair care with $18 million.
The company also provided an outlook, acknowledging challenges in various markets, including Mainland China, Western Europe, and the United States. It highlighted its strategic vision, "Beauty Reimagined," and the Profit Recovery and Growth Plan (PRGP) aimed at boosting consumer coverage, innovation, and growth through efficiencies and reimagining work processes.
As part of the PRGP, the company announced a restructuring program, which includes reorganization, rightsizing, process simplification, and outsourcing of select services. The program is expected to result in a net reduction of approximately 5,800 to 7,000 positions globally and incur restructuring charges totaling between $1.2 billion and $1.6 billion before taxes.
The company also addressed potential impacts of global macroeconomic factors, including inflationary pressures, tariff changes, and geopolitical tensions, on its business and financial performance. It emphasized its commitment to delivering superior products and services while adapting to shifts in consumer behaviors and shopping practices.
As a result of these announcements, the company's shares have moved -0.52% on the market, and are now trading at a price of $115.05. For the full picture, make sure to review ESTEE LAUDER COMPANIES INC's 10-Q report.
