SHERIDAN, WYOMING – May 9, 2025 – The Estée Lauder Companies Inc. (NYSE: EL) has released its financial results for the third quarter of fiscal 2025, highlighting key advancements in its “Beauty Reimagined” strategy. Despite facing challenges in its global operations, the company reported robust growth in specific markets, showcasing the strength of its premium beauty brands.
Strong Sales Momentum in Key Markets
Estée Lauder’s organic sales decreased by 9% in the third quarter, with net sales dropping 10% to $3.6 billion. However, the company’s global business saw notable growth in strategic markets, including the U.S., China, and Japan. According to Stéphane de La Faverie, President and CEO of Estée Lauder, the company successfully met its sales outlook, exceeding profitability expectations.
“We are building momentum as we bring our ‘Beauty Reimagined’ vision to life, especially through our gains in the U.S., China, and Japan,” said de La Faverie. “Our online growth continues, and we remain confident in returning to sales growth in fiscal 2026 as we navigate the challenges in travel retail.”
Product Innovations Drive Consumer Engagement
Estée Lauder also launched several breakthrough products aimed at capturing consumer interest and expanding its beauty offerings. These included the M·A·C Nudes Collection, La Mer Night Recovery Concentrate, and the Estée Lauder Double Wear Stay-in-Place Concealer. These launches contributed to the company’s continued success in consumer engagement, particularly with the younger, digitally-savvy demographic.
• M·A·C Nudes Collection: Reintroduced popular nude shades in lip and eye products.
• La Mer Night Recovery Concentrate: Designed for faster recovery from post-derm irritation.
• Estée Lauder Double Wear Concealer: A multi-use product with a matte finish, complementing the brand's iconic foundation.
These new offerings align with Estée Lauder’s strategy of blending innovation with luxury, keeping the brand at the forefront of the beauty industry.
Regional Performance and Market Adjustments
The company faced mixed results across different regions. In the Americas, sales decreased by 5%, with North America seeing a slight decline in consumer confidence, affecting retailer inventories. Conversely, Europe, the Middle East, and Africa (EMEA) saw a sharp 16% drop in sales, driven by challenges in the travel retail sector and the shift of retailers in Asia toward more profitable duty-free models.
However, there were bright spots in Asia, where Estée Lauder saw a mid-single-digit growth in mainland China, bolstered by the success of premium brands such as La Mer and Estée Lauder.
Focus on Operational Efficiency
Despite the decline in sales, the company’s focus on operational efficiency yielded positive results. Estée Lauder’s strategic Profit Recovery and Growth Plan (PRGP) helped improve gross margins by 310 basis points, reaching 75%. The company also made significant strides in restructuring, aiming to boost profitability and restore a double-digit operating margin by fiscal 2027.
“Our PRGP is designed to transform our operating model, and we are already seeing the benefits in improved margins and operational efficiencies,” de La Faverie commented.
Quarterly Dividend and Outlook
Estée Lauder remains committed to delivering shareholder value, announcing a quarterly dividend of $0.35 per share, payable on June 16, 2025. Looking ahead, the company anticipates a challenging fourth quarter, particularly in its global travel retail business, but remains optimistic about returning to sales growth in the coming years.
Conclusion: Beauty Continues to Thrive
Despite the hurdles faced in the third quarter of fiscal 2025, Estée Lauder’s strategic vision for beauty innovation, growth, and operational efficiency continues to drive its long-term success. With its ongoing investment in digital transformation and consumer-centric product offerings, Estée Lauder is poised to remain a leader in the beauty industry.
For more details on the company’s latest results and strategic initiatives, visit Estée Lauder’s official website.