• Net sales: $3.48B (+4% YoY) • Organic: +3%
• Gross margin: 73.4% (+100 bps) • Adj GM: 73.3% (+60 bps)
• Operating income: $169M (vs. $(121)M LY) • Adj OI: $255M; margin 7.3% (+300 bps)
• Diluted EPS: $0.13 (vs. $(0.43) LY) • Adj EPS: $0.32 (vs. $0.14)
Cash & Capital
• Operating cash flow: $(340)M (improved from $(670)M)
• Capex: $96M
• Dividend: $0.35 per share (payable Dec 15, 2025)
Category performance (organic)
• Skin Care +3% (La Mer, Estée Lauder)
• Fragrance +13% (Le Labo, TOM FORD, Jo Malone London)
• Makeup −2% (Bobbi Brown; fewer palettes; tougher launch comps)
• Hair Care −7% (Aveda; promo pullback, store rationalization)
Region performance (organic)
• Asia/Pacific +9% (travel retail strength)
• Mainland China +9% (innovation, online)
• EUKEM ≈ flat
• Americas −2% (department-store pressure; Amazon Premium Beauty ramp helps)
Outlook & Program Updates
• FY26 guidance reaffirmed: GAAP net sales +2–5% (organic 0–3%); Adj EPS $1.90–$2.10 (CC $1.87–$2.07).
• Tariffs: ~$(100)M FY26 headwind after mitigation.
• PRGP (Profit Recovery & Growth Plan): $1.2–$1.6B restructuring charges expected; $0.8–$1.0B annual gross benefits targeted by FY27; net headcount reduction 5,800–7,000 (over 4,000 approved to date).