The family of Leonard A. Lauder is seeking to sell more than $1 billion of the Estée Lauder Cos. stock. Trusts affiliated with descendants of Lauder are proposing to sell 11,301,323 shares of the company’s Class A common stock, par value $.01 per share, through a proposed registered public offering, the Estée Lauder Cos. said. More from WWD JP Morgan Securities is acting as the sole underwriter of the offering. The selling stockholders will receive all of the proceeds from the offering and not the beaut ...

Updated at 4:19 p.m. ET on Oct. 30 The Estée Lauder Cos.’ financial results are starting to improve on both the top and bottom lines. More from WWD The beauty company, whose brands include namesake Estée Lauder, Clinique, Bobbi Brown and Tom Ford, reported net sales increased 4 percent to $3.5 billion during the first quarter ended Sept. 30, compared with the same period a year earlier and surpassing estimates of $3.38 billion. At the same time, organic net sales rose 3 percent. Net earnings were $47 mi ...

Core Viewpoint - Estée Lauder is facing significant challenges in its recovery path, with a decline in net sales and operating income amid economic downturns and geopolitical factors [1][3]. Financial Performance - For the fiscal year 2025, Estée Lauder reported a net sales decline of 8% year-over-year, totaling $14.33 billion (approximately ¥1028.01 billion) [1][2]. - The company's gross profit decreased by 5% to $10.60 billion, with a gross margin of 74.0% [2]. - Operating income turned into a loss of $785 million, marking a significant decline from a profit of $970 million in the previous year [2][6]. - The diluted net loss per share was $3.15, compared to earnings of $1.08 per share in the prior year [2]. Business Segment Performance - The only category to show growth was the fragrance segment, which remained flat with a slight increase, while skincare, makeup, and hair care categories experienced declines of 12%, 6%, and 10% respectively [4][6]. - The skincare segment's decline was attributed to decreased sales of brands like Estée Lauder and La Mer, alongside a drop in Asian travel retail sales [7][11]. - The makeup segment's downturn was primarily due to poor performance from brands like M·A·C and Too Faced [7][8]. Regional Performance - All regions reported declines in net sales, with the EMEA region experiencing the largest drop of 12%, followed by Asia/Pacific at 7% and the Americas at 4% [10][11]. - In mainland China, net sales fell by 6%, influenced by a challenging retail environment and low consumer sentiment [11][14]. Strategic Initiatives - Estée Lauder is undergoing a restructuring plan (PRGP) aimed at restoring profitability, which has already led to over 3,200 job cuts, with projections of total cuts reaching between 5,800 to 7,000 positions [19][22]. - The company anticipates that the restructuring will incur pre-tax costs between $1.6 billion to $3.3 billion [19]. Future Outlook - Despite current challenges, Estée Lauder's management expressed confidence in achieving organic sales growth in fiscal year 2026 and aims to rebuild operational profitability [3][22]. - The company plans to report its financials based on a new geographical structure starting Q1 of fiscal year 2026, which will include China as a separate reporting region [11][19].

Core Viewpoint - Estée Lauder is facing significant challenges in its makeup business, prompting management changes and strategic adjustments to revitalize performance and drive growth [2][3]. Group 1: Management Changes - Estée Lauder appointed Sara Staniford as Vice President and General Manager for its three major makeup brands—MAC Cosmetics, Bobbi Brown, and Too Faced in the UK and Ireland [2]. - The company also recently appointed Lisa Sequino to lead the makeup division, indicating a focus on strengthening management to address declining sales [3]. Group 2: Financial Performance - In Q3 of fiscal year 2025, Estée Lauder's makeup revenue decreased by 9% year-over-year, with operating profit dropping by 79% [2]. - Overall, Estée Lauder's net sales for Q3 were $3.55 billion, a 10% decline compared to the previous year, and net profit fell by over 50% [3]. - For fiscal year 2024, net sales were $15.61 billion, down 2%, with net profit decreasing by 61% [3]. Group 3: Strategic Initiatives - Estée Lauder is implementing a major transformation strategy called "Beauty Reimagined," which reorganizes its business into eight categories with dedicated management [3]. - The company aims to enhance innovation in makeup and seek new growth opportunities through these management changes [3]. Group 4: Market Challenges - The global consumer demand is growing slowly, and the rise of domestic brands in China poses additional challenges for international companies like Estée Lauder [4]. - The company is attempting to strengthen its professional teams and enhance brand recognition to attract both returning and new customers [4].