Core Insights - The Estee Lauder Companies Inc. reported fourth-quarter fiscal 2025 results, with both net sales and earnings declining year over year, despite beating the Zacks Consensus Estimate for adjusted earnings and net sales [1][2]. Financial Performance - Adjusted earnings were 9 cents per share, surpassing the Zacks Consensus Estimate of 8 cents, but down 85% from 64 cents in the same quarter last year [1]. - Quarterly net sales reached $3,411 million, exceeding the Zacks Consensus Estimate of $3,402 million, but reflecting a 12% decline year over year [2]. Category-Wise Revenue Results - Skin Care sales decreased 16% year over year to $1,705 million, primarily due to challenges in the Asia travel retail business [3]. - Makeup revenues fell 11% to $982 million, driven by lower sales from Estee Lauder and M·A·C, as well as reduced sales for Too Faced in North America [4]. - Fragrance category revenues increased 4% to $560 million, led by luxury brands Le Labo and Jo Malone [5]. - Hair Care sales totaled $141 million, down 15% year over year, largely due to challenges in North America [6]. Regional Revenue Results - Sales in the Americas declined 6% year over year to $949 million [7]. - Revenues in the EMEA region fell 22% to $1,293 million [7]. - Asia-Pacific region sales tumbled 3% to $1,166 million [7]. Margin and Operating Performance - Adjusted gross margin improved by 10 basis points year over year to 71.9%, aided by the Profit Recovery and Growth Plan [8]. - The company reported an operating loss of $390 million, compared to a loss of $233 million in the prior year [9]. - Adjusted Operating Income declined 61% to $137 million [9]. Financial Health Snapshot - The company exited the quarter with cash and cash equivalents of $2,921 million, long-term debt of $7,314 million, and total equity of $3,865 million [10]. - Net cash flow from operating activities for the 12 months ended June 30, 2025, was $1,272 million, with capital expenditures of $602 million [10]. Restructuring Program - The company announced an expansion of its Profit Recovery and Growth Plan (PRGP), with a comprehensive restructuring initiative expected to be completed by fiscal 2027 [12]. - Anticipated restructuring charges range from $1.2 billion to $1.6 billion before taxes, with expected annual gross benefits of $800 million to $1 billion [13]. Future Outlook - For fiscal 2026, reported net sales are estimated to rise 2-5%, with adjusted organic net sales expected to grow 0-3% [14]. - Adjusted earnings per share are projected to increase by 26-39%, ranging from $1.90 to $2.10 [14]. - The company expects organic net sales for the first quarter of fiscal 2026 to show a low-single-digit decline to slightly positive growth [15].