Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against The Estee Lauder Companies Inc. regarding alleged breaches of fiduciary duties by its board of directors following a class action complaint filed on December 7, 2023 [1] Group 1: Allegations and Market Impact - The complaint alleges that Estee Lauder misled investors with unrealistic and materially false statements about market demand for its products and inventory levels [2] - These misleading statements concealed the company's market weaknesses until May 3, 2023, when Estee Lauder announced weaker-than-expected sales and profit, leading to a third consecutive cut in its fiscal year outlook [2] - Following this announcement, Estee Lauder's stock price fell from $245.22 per share on May 2, 2023, to $202.70 per share on May 3, 2023, reflecting a significant decline [2]

Core Insights - The Estee Lauder Companies Inc. reported third-quarter fiscal 2025 results with both net sales and earnings declining year over year, primarily due to weak consumer sentiment and reduced conversion rates in China [1][2] Financial Performance - Adjusted earnings were 65 cents per share, surpassing the Zacks Consensus Estimate of 29 cents, but down 33% from 97 cents in the prior year [2] - Quarterly net sales reached $3,550 million, exceeding the Zacks Consensus Estimate of $3,507.2 million, but reflecting a 10% decline year over year [2] - Organic net sales decreased by 9% to $3,605 million [2] Category-Wise Revenue Results - Skin Care sales fell 12% year over year to $1,807 million, impacted by weak consumer sentiment and lower conversion rates among Chinese shoppers [3] - Makeup revenues declined 9% to $1,035 million, primarily due to weaker sales from key brands like M·A·C and Estée Lauder [4] - Fragrance revenues decreased 3% to $557 million, largely due to lower performance from Clinique and Estee Lauder [4] - Hair Care sales totaled $126 million, down 12% year over year, mainly due to Aveda's weaker performance [5] Regional Revenue Results - Sales in the Americas fell 6% year over year to $1,052 million [6] - Revenues in the EMEA region declined 18% to $1,358 million [6] - Asia-Pacific region sales tumbled 3% to $1,140 million [6] Margin Analysis - Adjusted gross margin improved by 310 basis points to 75%, driven by the Profit Recovery and Growth Plan (PRGP) [7] - Adjusted operating margin contracted by 270 basis points to 11.4%, due to increased investments and sales volume deleverage [8] Financial Health - The company exited the quarter with cash and cash equivalents of $2,631 million, long-term debt of $7,298 million, and total equity of $4,345 million [9] - Net cash flow from operating activities for the nine months ended March 31, 2025, was $671 million, with capital expenditures of $395 million [10] Restructuring and Future Outlook - The PRGP aims to transform the operating model, with expected restructuring charges between $1.2 billion and $1.6 billion before taxes [12][13] - The company anticipates a decline in reported net sales of 8-9% for fiscal 2025, with adjusted organic net sales expected to fall by the same percentage [14] - Adjusted EPS is projected to slump by 40-50%, ranging from $1.30 to $1.55 for fiscal 2025 [15]

Sales Performance - Skin care net sales decreased by 12% to $1,807 million for the three months ended March 31, 2025, compared to $2,060 million in the same period of 2024[185]. - Makeup net sales decreased by 9% to $1,035 million for the three months ended March 31, 2025, compared to $1,136 million in the same period of 2024[185]. - Fragrance net sales decreased by 3% to $557 million for the three months ended March 31, 2025, compared to $575 million in the same period of 2024[185]. - Hair care net sales decreased by 12% to $126 million for the three months ended March 31, 2025, compared to $143 million in the same period of 2024[185]. - Net sales decreased by 10% to $3,550 million for the three months ended March 31, 2025, compared to $3,940 million in the prior year[223]. - The Americas region net sales were $1,052 million for the three months ended March 31, 2025, down from $1,117 million in the same period of 2024[185]. - Europe, the Middle East & Africa region net sales decreased to $1,358 million for the three months ended March 31, 2025, compared to $1,647 million in the same period of 2024[185]. - Asia/Pacific region net sales decreased to $1,140 million for the three months ended March 31, 2025, compared to $1,176 million in the same period of 2024[185]. - Net sales in The Americas decreased by 6%, primarily due to lower sales in North America and ongoing retail softness[197]. - Net sales in Europe, the Middle East & Africa decreased by 18%, driven by lower sales in the Asia travel retail business and strategic decisions to reduce exposure to reseller activity[197]. - Net sales in Asia/Pacific decreased by 3%, with declines in Korea, Hong Kong SAR, Singapore, Taiwan, and Australia, partially offset by growth in mainland China and Japan[197]. Operating Income and Expenses - Operating income decreased to $306 million for the three months ended March 31, 2025, compared to $531 million in the same period of 2024[185]. - Total operating expenses increased to 66.3% of net sales for the three months ended March 31, 2025, compared to 58.4% in the same period of 2024[187]. - Operating income decreased by 42% for the three months ended March 31, 2025, with an operating margin of 8.6%, down from 13.5% in the prior-year period[276]. - The unfavorable change in operating expense margin for the three months ended March 31, 2025 was influenced by higher advertising and merchandising expenses to support sales[274]. - Charges associated with restructuring and other activities for the three months ended March 31, 2025 amounted to $97 million, impacting overall operating income[277]. Earnings and Profitability - Net earnings attributable to The Estée Lauder Companies Inc. were 4.5% of net sales for the three months ended March 31, 2025, down from 8.4% in the same period of 2024[187]. - Net earnings attributable to The Estée Lauder Companies Inc. for the three months ended March 31, 2025, were $159 million, a decrease of 52% from $330 million in the prior year[301]. - Operating income as reported for the nine months ended March 31, 2025, was a loss of $395 million, compared to a profit of $1,203 million in the prior year, representing a decline of over 100%[309]. - Diluted net earnings per common share for the nine months ended March 31, 2025, were $(1.63), a decrease of over 100% from $1.87 in the prior year[309]. - The company reported a decrease in operating income as adjusted to $1,009 million for the nine months ended March 31, 2025, down 19% from $1,239 million in the prior year[309]. Restructuring and Future Plans - The company expects restructuring charges from the Profit Recovery and Growth Plan (PRGP) to total between $1,200 million and $1,600 million, before taxes[213]. - The PRGP aims to yield annual gross benefits of between $800 million and $1,000 million, before taxes, to support sales growth and improve profitability[214]. - The restructuring program is expected to result in a net reduction of approximately 5,800 to 7,000 positions globally, representing about 9-11% of total positions[212]. - The company is focusing on disciplined advertising and promotional expense management to mitigate declines in operating income across various segments[282][285]. - Future strategies may include targeted expansions and new product launches to enhance market presence and drive sales growth[285]. Cash Flow and Debt - As of March 31, 2025, the company had cash and cash equivalents of $2,631 million, down from $3,395 million at June 30, 2024[320]. - Total debt as a percentage of total capitalization increased to 63% at March 31, 2025, compared to 59% at June 30, 2024[329]. - Net cash flows provided by operating activities for the nine months ended March 31, 2025, were $671 million, a decrease from $1,471 million in the same period of 2024[331]. - The company’s outstanding borrowings totaled $7,301 million as of March 31, 2025, with long-term debt accounting for $7,298 million and current debt at $3 million[327]. Market Risks and Challenges - The company acknowledges potential risks affecting future performance, including increased competition in the skin care, makeup, fragrance, and hair care sectors[349]. - Future operating results may depend on the successful development, production, and marketing of new products[349]. - The company faces challenges from retail industry consolidations and potential bankruptcies, which could decrease the number of stores selling its products[349]. - Changes in consumer preferences regarding value perception and shopping habits may impact sales[349]. - The company is exposed to foreign currency fluctuations that could affect operational results and asset values[349]. - Global or local conditions, including economic policies and supply chain challenges, may influence consumer purchasing behavior[349]. - Shipment delays and increased production costs could arise from operational disruptions at manufacturing or distribution facilities[349].

Estee Lauder (EL) reported $3.55 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 9.9%. EPS of $0.65 for the same period compares to $0.97 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.51 billion, representing a surprise of +1.22%. The company delivered an EPS surprise of +124.14%, with the consensus EPS estimate being $0.29.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stree ...

The Estée Lauder Companies (EL) Q3 2025 Earnings Call May 01, 2025 08:30 AM ET Speaker0 Good day, everyone, and welcome to The Estee Lauder Companies Fiscal twenty twenty five Third Quarter Conference Call. Today's webcast is being recorded. For opening remarks and introductions, I would like to turn the call over to the Senior Vice President of Investor Relations, Ms. Rainey Mancini. Speaker1 Hello. On today's webcast are Stephane Della Pavri, President and Chief Executive Officer and Akhil Srivastava, Exe ...

The Estée Lauder Companies (EL) Q3 2025 Earnings Call May 01, 2025 08:30 AM ET Company Participants Rainey Mancini - SVP, IRStéphane de La Faverie - President and Chief Executive OfficerAkhil Shrivastava - Executive Vice President & Chief Financial OfficerBonnie Herzog - Managing Director Lauren Lieberman - Managing DirectorFilippo Falorni - Director - Equity ResearchDara Mohsenian - Managing Director - US Beverage/Household Products Sectors Conference Call Participants Steve Powers - Equity Research Analys ...

Estee Lauder (EL) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 124.14%. A quarter ago, it was expected that this beauty products company would post earnings of $0.32 per share when it actually produced earnings of $0.62, delivering a surprise of 93.75%.Over the last four quarters, ...

Financial Performance - Net sales decreased 10% to $3.55 billion, while organic net sales decreased 9% compared to the prior year[4]. - Operating income fell 42% to $306 million, with an operating margin of 8.6%, down from 13.5% in the prior-year period[4]. - Diluted net earnings per share decreased 52% to $0.44, while adjusted diluted net earnings per share decreased 33% to $0.65[5]. - Net sales for the three months ended March 31, 2025, were $3,550 million, a decrease of 10% compared to $3,940 million in the same period of 2024[42]. - Net sales for the nine months ended March 31, 2025, were $10,915 million, a decrease of 7% compared to $11,737 million in the same period of 2024[60]. - Net earnings for the nine months ended March 31, 2025, were a loss of $587 million, compared to a profit of $695 million in 2024[67]. - Operating income (loss) for the nine months ended March 31, 2025, was $(395) million, a decline of over 100% from $1,203 million in 2024[63]. - The company's diluted net earnings per common share for the nine months ended March 31, 2025, were $(1.63), a significant decline from $1.87 in 2024[63]. Sales by Category - Skin Care net sales decreased 11%, primarily due to declines in the Asia travel retail business and lower consumer sentiment in China[11]. - Makeup net sales decreased 7%, impacted by lower shipments for new product launches and retailer destocking[15]. - Fragrance net sales decreased 1%, with strong performance from Luxury Brands like Le Labo offsetting declines in other areas[15]. - The Americas region saw a 6% decline in net sales, while Europe, the Middle East & Africa experienced an 18% decline[16]. - Net sales in North America decreased by 5%, primarily due to retail softness and elevated inventory levels, despite a low single-digit increase in retail sales[19]. Gross Margin and Operating Income - Gross margin expanded 310 basis points to 75.0%, driven by the Profit Recovery and Growth Plan, despite the decline in net sales[5]. - Operating income decreased due to net sales decline and increased consumer-facing investments, partially offset by lower cost of sales and net benefits from the PRGP[22]. - Adjusted operating income (Non-GAAP) for the nine months ended March 31, 2025, was $1,009 million, down 19% from $1,239 million in 2024[63]. - Gross profit for the nine months ended March 31, 2025, was $8,141 million, down 3% from $8,406 million in 2024, with a gross margin of 74.6%[42]. Restructuring and Future Outlook - The Profit Recovery and Growth Plan (PRGP) aims to restore a solid double-digit adjusted operating margin by fiscal 2027, with restructuring charges estimated between $1.2 billion and $1.6 billion[25][27]. - The Company expects a net sales decline of 9% to 8% for the fiscal year ending June 30, 2025, with a high-single-digit organic net sales decline in Asia/Pacific[31]. - Forecasted diluted net earnings per share (EPS) for fiscal 2025 is projected to be between -$1.89 and -$1.61, with adjusted EPS expected to decline by 50% to 40% compared to the previous year[32]. - The company plans to complete specific initiatives under the restructuring program by the end of fiscal 2026, with an expanded focus on outsourcing and evolving selling models[45]. Impairments and Charges - The company recorded an impairment charge of $773 million for the TOM FORD brand and $75 million for the Too Faced brand due to interim impairment reviews[49]. - The impairment of goodwill and other intangible assets amounted to $861 million, with no such impairment reported in 2024[67]. - The company recorded a charge of $159 million related to talcum litigation settlement agreements in the fiscal 2025 first quarter[51]. Cash Flow and Capital Expenditures - Net cash flows provided by operating activities decreased to $671 million from $1,471 million year-over-year[67]. - Capital expenditures were reduced to $395 million from $702 million in the previous year[67]. - Dividends paid decreased to $492 million from $710 million year-over-year[67]. - The company’s cash and cash equivalents decreased to $2,631 million as of March 31, 2025, from $3,701 million in 2024[65]. Macroeconomic Factors - The company continues to monitor global macroeconomic factors, including inflationary pressures and supply chain challenges, which may impact consumer purchasing behavior[33]. - The global travel retail business experienced a strong double-digit decline, influenced by subdued consumer sentiment and strategic shifts by retailers in Korea and mainland China[22].

EssilorLuxottica 2025 Annual Shareholders’ Meeting All resolutions proposed by the Board of Directors adoptedDividend of Euro 3.95 per share, with option for payment in shares Paris, France (30 April 2025 – 6:00 pm CEST) – EssilorLuxottica Annual Shareholders’ Meeting was held today at 3 Mazarium in Paris. Shareholders approved all 17 resolutions submitted by the Board of Directors to the Ordinary and Extraordinary General Meeting, including the distribution of a Euro 3.95 dividend per share for the financi ...

The upcoming report from Estee Lauder (EL) is expected to reveal quarterly earnings of $0.29 per share, indicating a decline of 70.1% compared to the year-ago period. Analysts forecast revenues of $3.51 billion, representing a decrease of 11% year over year.The current level reflects a downward revision of 8.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Bef ...