Estée Lauder Reports 8% Sales Decline, $11.33 Billion Net Loss in Fiscal 2025

Estée Lauder Companies Inc. reported a significant decline in its fiscal year 2025 net sales, which amounted to $143.26 billion, marking an 8% decrease from the previous fiscal year's $156.08 billion. This downturn in sales was accompanied by a slight increase in the gross margin, which expanded from 71.7% to 74.0%. The company's overall performance for the fiscal year 2025 was characterized by a dual decline in both revenue and profitability. The net sales for the year ended June 30, 2025, stood at $143.26 billion, representing an 8% year-over-year decrease. This decline in sales was further exacerbated by a net loss of $11.33 billion, with an adjusted loss per share of $3.15. The operating profit margin also decreased from 6.2% in the previous year to 5.5% in the fiscal year 2025. The company's diluted net loss per share for the fiscal year 2025 was $3.15, compared to a net income of $1.08 per share in the previous year. The adjusted diluted net income per share for the fiscal year 2025 was $1.51, down from $2.59 in the previous year. The company has projected that its fiscal year 2026 revenue will be $146.9 billion, with an expected increase in adjusted earnings per share by 26-39%. Additionally, Estée Lauder anticipates an organic net sales growth of 0-3% for the fiscal year 2026, although market estimates suggest a growth of 1.94%. The company's decision to reduce its workforce by 3,200 employees is a strategic move aimed at cost-cutting and operational efficiency in response to the challenging market conditions. This restructuring effort is part of a broader initiative to streamline operations and focus on core business areas that drive growth and profitability. The company's financial performance for the fiscal year 2025 reflects the impact of various external factors, including economic uncertainties and shifting consumer preferences. Despite these challenges, Estée Lauder remains committed to its long-term growth strategy, focusing on innovation, product development, and expanding its market presence. The company's leadership is confident that these strategic initiatives will position Estée Lauder for sustained success in the competitive beauty and cosmetics industry.