Q3 2025 Estee Lauder Companies Inc Earnings Call Transcript

May 1, 2025 / 12:30 PM GMT

Release Date Price: $58.89 (-1.78%)

Transcript 10-Q8-K

Key Points

Positve

The Estee Lauder Companies Inc (EL) achieved market share gains in key markets such as the U.S., China, and Japan, marking significant progress in these regions.
Gross margin expanded by 310 basis points compared to the previous year, reflecting operational efficiencies and strategic pricing actions.
The company is making significant progress in its restructuring program, reducing over 2,600 net positions and streamlining middle management by 20%.
Innovations such as Clinique's new Moisture Surge and Estee Lauder's Double Wear concealer have driven consumer acquisition and market share gains.
The Estee Lauder Companies Inc (EL) is leveraging AI-driven marketing and expanding its presence on platforms like Amazon and TikTok, contributing to mid-single-digit growth in online organic sales.

Negative

Organic sales declined by 9% in the third quarter, with travel retail experiencing a significant 28% decline.
Diluted earnings per share decreased by 33%, indicating financial pressure despite some operational improvements.
Operating margin contracted by 270 basis points to 11.4%, driven by increased consumer-facing investments and sales deleverage.
The company faces ongoing challenges with weakened consumer sentiment in the U.S. and parts of Europe, as well as prolonged weak sentiment in China.
The geopolitical landscape, including evolving trade policies and tariffs, adds uncertainty and potential material impact on future profitability.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

EL.N - Estee Lauder Companies Inc
Q3 2025 Estee Lauder Companies Inc Earnings Call
May 01, 2025 / 12:30PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
And so too room.

Good day, everyone, and welcome to the Estee Lauder Companies fiscal 2025 third quarter conference call.

Today's webcast is being recorded.

For opening remarks and introductions, I would like to turn the call over to the Senior Vice President of Investor Relations, Ms. Rainey Mancini flow on today's webcast starts to fund Dilip operate President and Chief Executive Officer, and a key milestone for us to have a Executive Vice President and Chief Financial Officer.

Since many of remarks today contain forward looking statements, let me refer you to our press release and our reports filed with the SEC for factors that could cause actual results to differ materially from

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

30-Day 100% money back guarantee

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.