Estée Lauder(US:EL) FBeauty未来迹·2025-08-21 11:56Core Viewpoint - Estée Lauder Group's fiscal year 2025 report reveals significant strategic shifts, including the first disclosure of annual sales in mainland China and a major restructuring plan aimed at profit recovery and growth [3][6][9]. Financial Performance - The total net sales for fiscal year 2025 decreased by 8% to $14.33 billion, down from $15.61 billion in fiscal year 2024 [4][9]. - The Americas region reported a 4% decline in sales, while Europe, the Middle East, and Africa (EMEA) saw a 12% drop, and Asia/Pacific experienced a 7% decrease [20][22]. - Mainland China's sales were $2.74 billion, reflecting a 6% decline compared to the previous year [4][9]. Strategic Changes - The company is undergoing a large-scale restructuring, with plans to cut 5,800 to 7,000 jobs, having already reduced over 3,200 positions by August [6][9]. - Starting from fiscal year 2026, mainland China will be reported as an independent region alongside traditional markets like the Americas and Europe [3][6]. Profitability and Margins - Despite declining sales, the adjusted gross margin improved by 230 basis points to a record high of 74.0% [6][9]. - The company aims to achieve organic sales growth and rebuild operational profitability in the upcoming fiscal year [7][9]. Product Category Performance - Skincare and makeup categories faced challenges, with skincare sales down 12% to $6.96 billion, while makeup sales decreased by 5% to $4.21 billion [12][14]. - Fragrance remained stable, with sales of $2.49 billion, driven by brands like Le Labo and Jo Malone [16][18]. Market Dynamics - The Chinese market showed resilience, with all categories achieving market share growth in the second half of the fiscal year, particularly driven by La Mer and TOM FORD [24][26]. - The company is focusing on product innovation tailored to Chinese consumers, with new launches addressing specific skincare needs [26][28]. Organizational Restructuring - The company has made significant changes to its organizational structure, including the introduction of new key positions such as Chief Digital Marketing Officer and Chief Technology, Data, and Analytics Officer [33][34]. - The restructuring aims to enhance data-driven marketing and operational efficiency, aligning with the "Beauty Reimagined" strategy [32][34]. Future Outlook - The company anticipates organic net sales growth of 0% to 3% in fiscal year 2026, with continued strong gross margins and an increase in operating profit margins [34][35].