The Estée Lauder Companies Inc. has reported fiscal 2025 net sales of $14,326 million, an 8% year-over-year decline. Skin care results fell 12%, hair care dropped 10% and makeup fell 6%; fragrance results were flat, year-over-year. Every geographic region was down.
In February 2025, the company expanded its profit recovery and restructuring program, which has so far been offset by sales volume declines, growth investments and inflation. The plan aims to complete major actions by fiscal 2027, driving sales growth by 2026 and restoring double-digit adjusted operating margins while addressing external challenges.
- Skin Care: Net sales dropped 12%, mainly due to reduced performance in Estée Lauder and La Mer, impacted by weak consumer sentiment in Asia, reseller activity adjustments, and retailer strategy shifts in China and Korea. However, La Mer showed growth in late fiscal 2025 due to successful product launches like The Night Recovery Concentrate. Operating income declined, driven by lower sales and a $375M impairment charge related to Dr.Jart+.
- Makeup: Sales declined 5%, largely due to weak performance from M·A·C, Estée Lauder, Too Faced, and Bobbi Brown, reflecting retail softness and inventory challenges. New launches like M·A·C’s Nudes Collection and Clinique’s innovation in face and lip products helped offset some declines. Operating income fell due to impairment charges totaling $308M and talcum litigation costs.
- Fragrance: Sales remained flat, with strong growth from Le Labo and KILIAN PARIS offset by declines from TOM FORD and other established brands like Estée Lauder’s Pleasures. Innovation and expanded consumer reach helped drive performance for select luxury brands, but overall results were impacted by a $549M intangible asset impairment charge for TOM FORD.
- Hair Care: Sales fell 10%, driven by declines in Aveda and Bumble and bumble due to brick-and-mortar challenges and salon softness, though online growth provided some relief. Operating results improved through cost management and reduced expenses, despite the overall sales decline.
Stéphane de La Faverie, president and CEO, said, “Having closed fiscal 2025 as expected, we remain wholly focused on continuing to execute our strategic vision of Beauty Reimagined with excellence. Despite continued volatility in the external environment, we embarked on fiscal 2026 with signs of momentum and confidence in our outlook to deliver organic sales growth this year after three years of declines and to begin rebuilding operating profitability in pursuit of a solid double-digit adjusted operating margin over the next few years.”
