🔹 Revenue: $3.41B (Est. $3.39B) 🟢; ↓12% YoY
🔹 EPS (Adj.): $0.09 (Est. $0.08) 🟢; ↓86% YoY
🔹 Organic Sales: Down 13% YoY
FY26 Outlook
🔹 Affirms: return to organic sales growth after 3 years of decline.
🔹 Target: rebuild adj. operating margin to double digits over coming years.
🔹 Continued innovation pipeline (La Mer, Clinique, MAC, Tom Ford, Le Labo).
🔹 Strategic expansion: Amazon Premium Beauty (U.S., Canada, Mexico, U.K., China), TikTok Shop, Shopee.
Other Key Q4 Updates:
🔹 Net Loss: -$546M vs. -$284M YoY
🔹 Operating Loss: -$390M vs. -$233M YoY
🔸 Heavy impairment charges ($1.3B across brands incl. Tom Ford, Too Faced, Dr.Jart+).
🔸 $159M talc litigation settlement.
🔸 Travel retail drag in Asia (China/Korea).
🔸 Consumer-facing investments ↑ (ads, promotions) funded by cost cuts.
🔸 Sequential share gains in China & U.S. prestige beauty despite macro softness.
Category Performance (FY25)
🔸 Skin Care: $7.0B ↓12% — weakness in Estée Lauder/La Mer due to China & travel retail softness; partially offset by The Ordinary.
🔸 Makeup: $4.2B ↓5% — MAC, Estée Lauder, Too Faced down; Clinique strong across geographies.
🔸 Fragrance: $2.5B flat — strong growth from Le Labo, Jo Malone, Kilian offset by weakness in Tom Ford.
🔸 Hair Care: $565M ↓10% — Aveda, Bumble down; online helped by Amazon launch.
Regional Performance (FY25)
🔸 Americas: $4.4B ↓3% (Net loss, heavy impairments, litigation charges)
🔸 EMEA: $5.4B ↓13% (Travel retail plunge; softer consumer sentiment)
🔸 APAC: $4.5B ↓7% (China travel retail weakness; Dr.Jart+ impairments)
Dividend
🔹 Declared quarterly dividend: $0.35/share, payable Sept 16, 2025.