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Jun 30, 2025
Estee Lauder Q4 2025 Earnings Report
Reported a wider net loss as revenue declined across most segments in Q4 2025.
Key Takeaways
Estée Lauder's Q4 2025 performance was impacted by double-digit declines in global travel retail and weakness in Asia/Pacific, resulting in a net loss of $546M. Fragrance was the only category to grow, while Skin Care and Makeup saw sharp declines. Adjusted EPS dropped significantly, and the company recorded substantial impairment charges.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For FY2026, Estée Lauder expects a return to organic sales growth and operating margin expansion, despite macroeconomic and geopolitical challenges.
Positive Outlook
- Return to growth expected in global travel retail in fiscal H2 2026
- Mid-single-digit growth anticipated in mainland China
- Adjusted operating margin projected to expand to 9.4–9.9%
- Continued benefits expected from PRGP efficiency initiatives
- Improved profitability guidance with EPS forecasted between $1.90–$2.10
Challenges Ahead
- Tariff-related headwinds projected to reduce profitability by ~$100M
- Weak conversion and subdued sentiment in Asia travel retail still a risk
- Higher restructuring payments to peak in FY2026
- Adjusted effective tax rate expected to remain elevated at ~36%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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