The Estée Lauder Companies said skin care net sales decreased 12% for the 3 months ended December 31, 2024. It cited lower net sales from Estée Lauder and La Mer as primary factors and described challenging retail environments in mainland China and the Asia travel retail business.

10-QQuarterly reportFiled Feb 4, 2025Period of report Dec 31, 2024Summary published (UTC) Oct 10, 2026

Key points

AI summary

The Estée Lauder Companies said skin care net sales decreased 12% for the 3 months ended December 31, 2024. It cited lower net sales from Estée Lauder and La Mer as primary factors and described challenging retail environments in mainland China and the Asia travel retail business.
The company said the decrease in reported operating margin for the 3 and 6 months ended December 31, 2024 reflected goodwill and other intangible asset impairments relating to TOM FORD and Too Faced, combined, of $861 million and a decrease in net sales, partially offset by an increase in gross margin.
The Estée Lauder Companies said charges associated with restructuring and other activities were $181 million for the 3 months (compared with $8 million in the prior year) and $287 million for the 6 months (compared with $10 million in the prior year). It also reflected a charge in the fiscal 2025 first quarter associated with talcum litigation settlement agreements of $159 million.
The company said cash and cash equivalents as of December 31, 2024 were $2,586 million (compared with $3,395 million as of June 30, 2024). In December, it redeemed $500 million 2.000% Senior Notes at maturity, and the debt-to-total-capital ratio was 64% (compared with 59% in June).

Key figures

Quarter ended December 31, 2024

Revenue: $4.0B
Operating income: −$580M
Net income: −$590M
EPS: −$1.64
Gross profit: $3.0B

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Skin Care Net Sales Down 12%

The Estée Lauder Companies said skin care net sales decreased 12% for the 3 months ended December 31, 2024. It cited lower net sales from Estée Lauder and La Mer as primary factors and described challenging retail environments in mainland China and the Asia travel retail business.

Source · Based on the MD&A text of the filing

TOM FORD and Too Faced Impairment Charges of $861 million

The company said the decrease in reported operating margin for the 3 and 6 months ended December 31, 2024 reflected goodwill and other intangible asset impairments relating to TOM FORD and Too Faced, combined, of $861 million and a decrease in net sales, partially offset by an increase in gross margin.

Source · Based on the MD&A text of the filing

Restructuring Charges and Talcum Litigation Settlement Costs

The Estée Lauder Companies said charges associated with restructuring and other activities were $181 million for the 3 months (compared with $8 million in the prior year) and $287 million for the 6 months (compared with $10 million in the prior year). It also reflected a charge in the fiscal 2025 first quarter associated with talcum litigation settlement agreements of $159 million.

Source · Based on the MD&A text of the filing

Cash of $2,586 million and Debt-to-Total-Capital Ratio of 64%

The company said cash and cash equivalents as of December 31, 2024 were $2,586 million (compared with $3,395 million as of June 30, 2024). In December, it redeemed $500 million 2.000% Senior Notes at maturity, and the debt-to-total-capital ratio was 64% (compared with 59% in June).

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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