Estée Lauder announced on Tuesday the launch of a new strategic plan designed to return to growth after posting losses in the last three months of 2024.
The cosmetics specialist explains that the 'Beauty Reimagined' plan aims to transform it into a faster, more agile group, better able to take advantage of growth opportunities and improve profitability.
Specifically, Estée Lauder says it wants to return to sustainable sales growth and a solid double-digit operating margin over the next few years.
The New York-based group now says it expects to cut between 5,800 and 7,000 jobs.
While we recognize that much remains to be done, we are confident that the Beauty Reimagined plan is the best way to achieve our ambitions," said CEO Stéphane de La Faverie.
In its second fiscal quarter, ended December 31, the company's net sales fell by 6% to four billion dollars, with an operating loss of 480 million.
For the third quarter, ending at the end of March, Estée Lauder expects a decline in net sales of between 10% and 12%, and earnings per share (EPS) of between $0.20 and $0.30, compared with $0.97 a year earlier.
Following this publication, the share price dropped by more than 8% in pre-market trading on Wall Street.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The Estée Lauder Companies Inc. is one of the 1st world cosmetics groups. Products are sold under brands (Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, Bobbi Brown, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin, TOM FORD, Smashbox, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+, The Ordinary and NIOD) and under brands of licenses (AERIN, BALMAIN and Dr. Andrew Weil). Net sales break down by family of products as follows:
- skin care products (48.6%);
- make-up products (29.4%);
- perfumes (17.4%);
- hair care products (3.9%);
- other (0.7%).
At the end of June 2025, products are marketed through about 1,600 outlets worldwide, distributed between large stores, perfume shops, pharmacies, beauty institutes and exclusive shops, and via Internet.
Net sales are distributed geographically as follows: Americas (30.8%), Europe/Middle East/Africa (37.5%) and Asia/Pacific (31.7%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
