The earnings call reflects a company in transition, with significant strategic initiatives aimed at restoring growth and profitability. While there are notable achievements in innovation and market expansion, major challenges remain, particularly in Asia. The sentiment is balanced between optimism for strategic changes and concern over current market pressures.

Company Guidance

During The Estée Lauder Companies' Second Quarter Fiscal 2025 earnings call, CEO Stéphane de La Faverie and CFO Akhil Shrivastava outlined the company's strategic vision, "Beauty Reimagined," aimed at restoring sustainable sales growth and achieving a solid double-digit adjusted operating margin over the next few years. Key metrics presented included a 6% decline in organic net sales for the quarter, with adjusted EPS at $0.62, surpassing expectations. The company has initiated the largest operational transformation in its history, expecting to achieve annual gross savings of $800 million to $1 billion through the expanded Profit Recovery and Growth Plan (PRGP). This plan includes a global reduction of 5,800 to 7,000 positions, with the restructuring program expected to generate $1.2 billion to $1.6 billion in charges. Looking ahead, the company anticipates a 10% to 8% decrease in organic net sales for the third quarter, particularly impacted by a double-digit decline in their global travel retail business.

Transformative Strategic Vision: Beauty Reimagined

Estée Lauder introduced a new strategic vision named 'Beauty Reimagined', focusing on restoring sustainable sales growth and achieving a solid double-digit adjusted operating margin over the next few years. This involves a major transformation aimed at increasing agility and consumer focus.

PRGP Progress and Expansion

The Profit Recovery and Growth Plan (PRGP) has seen significant progress, delivering over 60% of the fiscal 2025 objective in the first half of the fiscal year. The plan has been expanded to address new challenges and further optimize operational efficiencies.

Innovation and Consumer-Facing Investments

Estée Lauder is committed to tripling the percentage of innovation launched within a year and increasing consumer-facing investments, including visible advertising and optimizing marketing programs.

Successful Brand Launches and Market Expansions

Brands like Clinique and The Ordinary have successfully launched on platforms such as Amazon's U.S. Premium Beauty stores, leading to significant market share gains.

AI Integration for Efficiency

The company is implementing AI across various functions, from demand forecasting to marketing, to improve efficiency and decision-making.

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The Estée Lauder Companies (GB:0JTM) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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GB:0JTM Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 20, 2018	2018 (Q4)	- / 0.61	0.51	19.61% (+0.10)	―	―
Oct 31, 2018	2019 (Q1)	- / 1.50	1.21	23.97% (+0.29)	―	―
Feb 05, 2019	2019 (Q2)	- / 1.74	1.52	14.47% (+0.22)	―	―
May 01, 2019	2019 (Q3)	- / 1.55	1.17	32.48% (+0.38)	―	―
Aug 19, 2019	2019 (Q4)	- / 0.70	0.61	14.75% (+0.09)	―	―
Oct 31, 2019	2020 (Q1)	- / 1.68	1.5	12.00% (+0.18)	―	―
Feb 06, 2020	2020 (Q2)	- / 2.12	1.74	21.84% (+0.38)	―	―
May 01, 2020	2020 (Q3)	- / 0.86	1.55	-44.52% (-0.69)	―	―
Aug 20, 2020	2020 (Q4)	- / -0.50	0.7	-171.43% (-1.20)	―	―
Nov 02, 2020	2021 (Q1)	- / 1.44	1.68	-14.29% (-0.24)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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GB:0JTM Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 04, 2025	$82.95	$70.27	-15.30%
Oct 31, 2024	$87.18	$67.60	-22.45%
Aug 19, 2024	$93.82	$93.90	+0.08%
May 01, 2024	$144.58	$127.58	-11.76%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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