Core Insights - Estee Lauder Companies, Inc. reported stronger-than-expected quarterly results driven by broad-based demand across its prestige beauty portfolio, despite shares trading lower ahead of the open [1] Quarterly Metrics - The company reported second-quarter adjusted earnings per share of 89 cents, exceeding the analyst consensus estimate of 83 cents [2] - Quarterly sales reached $4.229 billion, reflecting a 6% year-over-year increase, surpassing the Street view of $4.219 billion [2] - Organic net sales grew by 4% year-over-year [2] Regional Performance - Mainland China experienced a second consecutive quarter of double-digit retail sales growth, with share gains led by La Mer, TOM FORD, and Le Labo [3] - Japan and the U.S. also saw share gains, with Makeup and Fragrance leading in Japan, while Skin Care/Hair Care and DTC Fragrance increased mid-single digits in the U.S. [3] - Western Europe posted Fragrance share gains across France, Spain, and the U.K., with the company gaining share across categories and channels for full-year 2025 [3] Product Category Performance - Skin Care sales rose 7% to $2.054 billion, Makeup increased 1% to $1.164 billion, and Fragrance advanced 9% to $812 million [4] - Quarterly adjusted gross profit increased by 6% year-over-year to $3.235 billion, with adjusted gross margin expanding to 76.5% from 76.1% [4] - Adjusted Operating Income jumped 32% to $608 million, while adjusted operating margin expanded to 14.4% from 11.5% [4] - The company exited the quarter with cash and equivalents worth $3.082 billion [4] Restructuring Program - The company is executing a significant operational, leadership, and cultural transformation under its global restructuring plan, Beauty Reimagined [6] - The restructuring is expected to incur pre-tax charges of $1.2 billion to $1.6 billion and generate annual gross benefits of $0.8 billion to $1.0 billion [7]