Q1 2025 Estee Lauder Companies Inc Earnings Call Transcript
Key Points
- The Estee Lauder Companies Inc (EL) reported adjusted gross margin expansion by over 300 basis points, driven by strategic initiatives.
- The company achieved adjusted EPS of $0.14, exceeding the initial outlook for the quarter.
- Estee Lauder gained prestige beauty share in Japan, driven by strong performance in the fragrance category.
- The company saw high single-digit organic sales growth in skin care in EMEA markets, supported by new product launches.
- Estee Lauder's strategic reset is showing initial positive results, with improvements in operational efficiency and market share gains in key regions.
- Organic sales decreased by 5%, primarily due to double-digit declines in Mainland China and global travel retail.
- The company is facing greater macroeconomic headwinds than expected, leading to the withdrawal of its fiscal year 2025 outlook.
- Prestige beauty industry retail sales in Mainland China weakened further, with a mid-teens percentage decrease.
- The US prestige beauty industry retail sales growth decelerated from high single-digit to mid-single-digit growth.
- The Estee Lauder Companies Inc (EL) reduced its quarterly dividend from $0.66 to $0.35 per share to create more financial flexibility.
Good morning, and welcome to the Estee Lauder Companies Q1 fiscal 2025 earnings release and conference call. (Operator Instructions)
Please also note, today's event is being recorded. At this time, I'd like to turn the floor over to Rainey Mancini, Senior Vice President of Investor Relations. Ma'am, please go ahead.
Hello. On today's call are Fabrizio Freda, President and Chief Executive Officer, and Tracey Travis, Executive Vice President and Chief Financial Officer. Since many of our remarks today contain forward-looking statements, let me refer you to our press release and our reports filed with the SEC, where you'll find factors that could cause actual results to differ materially from these forward-looking statements.
To facilitate the discussion of our underlying business, the commentary on our financial results and expectations is before restructuring and other charges and adjustments disclosed in our press release. Unless otherwise stated, all
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