Estée Lauder: loss-making, plan to return to growth

(CercleFinance.com) - Estée Lauder announced on Tuesday the launch of a new strategic plan designed to return to growth after posting losses in the last three months of 2024.


The cosmetics specialist explains that the 'Beauty Reimagined' plan aims to transform it into a faster, more agile group, better able to take advantage of growth opportunities and improve profitability.

Specifically, Estée Lauder says it wants to return to sustainable sales growth and a solid double-digit operating margin over the next few years.

The New York-based group now says it expects to cut between 5,800 and 7,000 jobs.

While we recognize that much remains to be done, we are confident that the Beauty Reimagined plan is the best way to achieve our ambitions," said CEO Stéphane de La Faverie.

In its second fiscal quarter, ended December 31, the company's net sales fell by 6% to four billion dollars, with an operating loss of 480 million.

For the third quarter, ending at the end of March, Estée Lauder expects a decline in net sales of between 10% and 12%, and earnings per share (EPS) of between $0.20 and $0.30, compared with $0.97 a year earlier.

Following this publication, the share price dropped by more than 8% in pre-market trading on Wall Street.

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