🔹 Adj. EPS: $0.62 (Est. $0.32) 🟢; DOWN -29% YoY
🔹 Revenue: $4.00B (Est. $3.97B) 🟢; DOWN -6% YoY
🔹 Gross Margin: 76.1% (Est. 73.76%) 🟢; UP +310bps YoY
Q3'25 Guidance:
🔹 EPS: $0.20-$0.30 (Est. $0.32) 😐
🔹 Revenue Growth: (10%) to (8%) YoY
🔹 Adj. Constant Currency EPS: $0.24-$0.34
🔹 Effective Tax Rate: ~36%
Segment Revenue:
🔹 Skin Care: $1.92B (Est. $1.93B) 🟡; DOWN -12% YoY
🔹 Makeup: $1.15B (Est. $1.14B) 🟢; DOWN -1% YoY
🔹 Fragrance: $744M (Est. $728.5M) 🟢; UP +2% YoY
🔹 Hair Care: $159M (Est. $161.5M) 🔴; DOWN -8% YoY
🔹 Other: $30M (Est. $28.5M) 🟢
Other Key metrics:
🔹 Gross Profit: $3.05B (Est. $2.93B) 🟢; DOWN -2% YoY
🔹 Adj. Operating Margin: 11.5% (Est. 12.4%) 😕; DOWN -200bps YoY
🔹 SG&A Expense: $2.66B (Est. $2.65B) 🟡
🔹 Capital Expenditure: $273M; DOWN from $527M YoY
🔹 Dividends Paid: $366M
Regional Performance:
🔹 Americas Revenue: $1.22B; FLAT YoY
🔹 Europe, Middle East & Africa Revenue: $1.49B; DOWN -6% YoY
🔹 Asia/Pacific Revenue: $1.29B; DOWN -11% YoY
Strategic & Operational Updates:
🔸 Launched "Beauty Reimagined" initiative to restore sustainable growth and profitability.
🔸 Strengthened The Ordinary's reach through TikTok UK & Amazon US launches.
🔸 Expanded Fragrance distribution with 20+ new freestanding stores, led by Jo Malone London & Le Labo.
🔸 Announced restructuring program with estimated charges of $1.2B-$1.6B to yield $0.8B-$1.0B in annual benefits.
🔸 Net workforce reduction: 5,800-7,000 positions by FY26.
CEO Commentary:
🔸 "While Q2 results reflect continued challenges in Asia travel retail, our Beauty Reimagined strategy positions us to drive innovation, expand reach, and improve profitability."
🔸 "Strategic investments in consumer-facing initiatives are expected to reignite sales growth, supported by cost efficiencies from our Profit Recovery and Growth Plan."
Dividend Update:
🔹 Quarterly Dividend: $0.35/share, payable March 17, 2025.