Estée Lauder Companies Conference Summary Company Overview - **Company**: Estée Lauder Companies (NYSE: EL) - **Event**: 2025 Conference held on December 02, 2025 - **Speakers**: CEO Stéphane de La Faverie and Chief Digital and Marketing Officer Aude Gandon Key Points Beauty Reimagined Program - The company is a year into the "Beauty Reimagined" program, focusing on five pillars: consumer coverage, accelerating innovation, and increased investment in consumer-facing initiatives [3][4] - Progress has been made in consumer coverage, with expansion into platforms like Amazon, Shopee, and TikTok Shop, reconnecting with lapsed consumers and attracting new ones [4] - Innovation is accelerating, with notable product launches like Double Wear Concealer and The Ordinary, which has seen consistent double-digit growth [5][6] Financial and Operational Performance - The company has maintained and even grown market share in the U.S. and China, with a focus on innovation and consumer engagement [5][39] - The company is in the process of reducing workforce by 5,800-7,000 positions as part of its Profit Recovery and Growth Plan (PRGP) [8] - A cultural shift is underway, with a focus on agility and accountability within the organization [19][26] Digital and Marketing Strategy - Aude Gandon emphasizes the importance of media investment rebalancing towards brand building and awareness, moving away from a solely performance-driven approach [13][15] - Personalization is a key focus, leveraging data and AI to enhance consumer engagement and marketing effectiveness [17][18] - The company is actively engaging in social selling through platforms like TikTok Shop, recognizing the need for shoppable content [27][29] Market Insights - In the U.S., the company is regaining market share after years of decline, with a focus on price-sensitive consumers and leveraging brands like The Ordinary and Clinique [39][40] - In China, the market is stabilizing after a period of depressed sales, with consistent market share gains across several brands [46][49] - Western Europe presents challenges, with low consumer sentiment in some markets, but opportunities exist in emerging markets like Mexico and India, where double-digit growth has been observed [53][55] Leadership and Organizational Changes - The executive team has undergone significant changes, with over 70% of the leadership being new or in new positions, aimed at enhancing skills in media, digital, and innovation [20][21] - The company is focused on building a more agile and accountable organization, with changes in the reward system to align with overall enterprise success [22][26] Future Outlook - The company is optimistic about its ability to sustain growth and regain market share, with a strong foundation and a committed leadership team [59][62] - Continued investment in innovation and consumer engagement is expected to drive future success [50][51] Additional Insights - The company is adapting to the evolving retail landscape, integrating emerging channels with traditional ones to enhance consumer experience [30][34] - The partnership with Shopify is seen as crucial for integrating commerce with marketing efforts [31][32] - The focus on content creation is shifting towards producing adaptable content for various platforms to meet consumer needs [33] This summary encapsulates the key discussions and insights from the Estée Lauder Companies conference, highlighting the company's strategic initiatives, market performance, and future outlook.

Financial Data and Key Metrics Changes - The company is entering fiscal 2026 with momentum, indicating a positive shift in performance [7] - The company has experienced a turnaround in market share, particularly in the U.S. and China, after years of decline [9] - The goal is to achieve a low single-digit growth in China, with a focus on gaining market share [31] Business Line Data and Key Metrics Changes - The Americas organization has gained market share for the first time in a long time, attributed to consumer-facing investments and coverage [14] - The company aims for over 25% of total business to come from innovation, with a commitment to tripling innovation in less than a year [11][22] - The launch of brands on Amazon has been significant, with 11 brands now available in the U.S. and expansion into Canada, Mexico, and the U.K. [15] Market Data and Key Metrics Changes - The Chinese market is stabilizing, with the company gaining market share across various brands, including La Mer and Tom Ford [32] - The competitive landscape in China shows international brands growing faster than local brands, with a significant portion of the market still held by international brands [34] - Emerging markets, particularly India and Southeast Asia, are critical to the company's growth strategy, with a goal of increasing their contribution to total business [37] Company Strategy and Development Direction - The company is focused on a transformation strategy called "Beauty Reimagined," which includes five pillars aimed at improving market share and operational efficiency [4][8] - There is a clear strategy to reposition products at more acceptable price points to attract new consumers and reengage lapsed ones [26][29] - The company is committed to investing efficiently across brands and regions to ensure balanced growth [12] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the U.S. market's robustness and the potential for luxury beauty to perform well despite economic challenges [42] - There are concerns about consumer confidence in Continental Europe, particularly in France, Germany, and the U.K., which may pose risks [44] - The company is focused on creating an agile operating model to enhance speed and efficiency in decision-making [62] Other Important Information - The company is undergoing a significant operational transformation, which is the largest in its history, aimed at simplifying processes and improving decision-making [13] - The use of AI has been highlighted as a key factor in improving efficiency in product development and reducing risks [24][25] Q&A Session Summary Question: What is the outlook for growth in China? - The company expects mid single-digit growth in China, with a focus on gaining market share and diversifying its portfolio [31][32] Question: How does the company view the competitive environment in China? - International brands are currently growing faster than local brands, with a significant market share still held by international brands [34] Question: What is the strategy for emerging markets? - The company aims to increase the contribution of emerging markets to at least mid double digits, with a focus on India and Southeast Asia [37][39] Question: How is the company balancing investment and margin restoration? - The company is focused on reinvesting to fuel growth while also aiming to restore and build margins through efficiency [70][72] Question: What does success look like for the company in the next year? - Success will be measured by consistent market share gains beyond the U.S. and China, and the ability to create an agile operating model [75][76]