b81ae023ccb25a6267dec361eae7bfc448d0cd843b726741a1983798093f0a89

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

e610852e5a0b266c3d4f24016b6a32b273aba2d865f4042dc3d7ca70b41cb491

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

4e74deee3f4efdfb4173b06bdc5f5a0c08fa15709bda11eea8ce17c77e2eee65

The Americas

Europe, Middle East & Africa

Asia/Pacific

- United States

Total Revenue

f93098122d044443b1ded2b96a49407e38afdb4a107989d3493abe3ce5395136

Skin Care

Makeup

Fragrance

Hair Care

Other

a5c103ea787ea06367272b032e2e7d7561008afd468de77d69f02b8e28e2d2b5

Net sales (USD, millions)

Cost of sales (USD, millions)

Gross profit (USD, millions)

Selling, general and administrative (USD, millions)

Restructuring and other charges (USD, millions)

Impairment of goodwill and other intangible assets (USD, millions)

Talcum litigation settlement agreements (USD, millions)

Total operating expenses (USD, millions)

Operating income (loss) (USD, millions)

Interest expense (USD, millions)

Interest income and investment income, net (USD, millions)

Other components of net periodic benefit cost (USD, millions)

Earnings (loss) before income taxes (USD, millions)

Provision (benefit) for income taxes (USD, millions)

Net earnings (loss) (USD, millions)

Net earnings attributable to redeemable noncontrolling interest (USD, millions)

Net earnings (loss) attributable to The Estée Lauder Companies Inc. (USD, millions)

Net earnings (loss) attributable to The Estée Lauder Companies Inc. per common share - Basic (USD)

Net earnings (loss) attributable to The Estée Lauder Companies Inc. per common share - Diluted (USD)

Weighted average common shares outstanding - Basic (Millions)

Weighted average common shares outstanding - Diluted (Millions)

80d2eb3040e8d11e6d11f6f8e50d8fce80af5a1a1bc5d0cba916449c1ee2e7fc

Number of brands launched to-date in Amazon's U.S. Beauty store (count)

Estimated net reduction in positions (positions)

Estimated net reduction in positions as a percentage of workforce (percentage)

75ab77b377662068081a0f1ff0d9f13197a6b5eb0f2ae2e20d2e52b4ff34bade

Cash and cash equivalents (USD, millions)

Accounts receivable, net (USD, millions)

Inventory and promotional merchandise (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Total current assets (USD, millions)

Property, plant and equipment, net (USD, millions)

Operating lease right-of-use assets (USD, millions)

Goodwill (USD, millions)

Other intangible assets, net (USD, millions)

Other assets (USD, millions)

Total other assets (USD, millions)

Total assets (USD, millions)

Current debt (USD, millions)

Accounts payable (USD, millions)

Operating lease liabilities (USD, millions)

Other accrued liabilities (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Long-term operating lease liabilities (USD, millions)

Other noncurrent liabilities (USD, millions)

Total noncurrent liabilities (USD, millions)

Common stock (USD, millions)

Paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Less: Treasury stock (USD, millions)

Total equity (USD, millions)

Redeemable noncontrolling interest (USD, millions)

Total liabilities and equity (USD, millions)

931e914c7346b6da4ca5f1ce5ad1463176bd2cbda0f4cc1e0658f454ad6623e9

1d2a5c6b719712e9e48902b8332b96e2130d7544852f676e674eaa87231e68b8

Estée Lauder’s cash declined sharply in Q1 2025 primarily due to increased cash outflows from operating activities. The company reported net cash flows used for operations of **$670 million** during Q1 2025 compared to **$408 million** in the prior period, driven by a **net loss of $156 million** in Q1 2025 versus net earnings of **$36 million** in Q1 2024, along with unfavorable changes in working capital such as a **$219 million increase in accounts receivable** and a **$440 million decrease in accounts payable and other liabilities**. In addition, **$141 million in capital expenditures** and **$240 million in dividend payments** further contributed to the decline in cash.  **[0001001250-24-000177_el-20240930.htm:3]** **[0001001250-24-000174_fy2025q1exhibit991.htm:17]** 

Why did cash decline so sharply in Q1 2025?

The significant drop in Total Assets in Q2 2025 was driven by several factors, including a **reduction in cash and cash equivalents** (from **$3,939 million** to **$2,586 million**), a **decline in inventory and promotional merchandise** (from **$2,603 million** to **$2,002 million**), and a **reduction in other assets** (from **$9,329 million** to **$7,924 million**). Additionally, **impairment charges of $861 million** related to brands such as **TOM FORD and Too Faced** adversely affected the valuation of goodwill and intangible assets, collectively contributing to the significant decrease in total assets.  **[0001001250-25-000009_fy2025q2exhibit991.htm:21]** **[EL_3414190_7]** 

What drove the significant drop in Total Assets in Q2 2025?

The abrupt decrease in current debt in Q2 2025 occurred because Estée Lauder repaid **$500 million** of **2.000% Senior Notes** when they matured in December 2024, using cash from operations. This repayment dramatically lowered the current debt from around **$504 million** to just **$4 million**.  **[0001001250-25-000009_fy2025q2exhibit991.htm:21]** **[0001001250-25-000011_el-20241231.htm:71]** 

How did Current Debt fall abruptly in Q2 2025?

5972dd44dc6726e317b24f1f61fea04ec688e6b3e29c71ababf09e3cc82567fa

Operating income turned negative in Q4 2024 primarily due to several factors. The company recorded **$471 million in impairment charges** on its **Dr.Jart+ brand** because of lower-than-expected growth and profitability, compounded by its exit from the travel retail channel.  **[EL_3399417_6]** **[0001001250-24-000112_elq4fy2024exhibit991.htm:12]**  Additionally, **significant declines in the Asia/Pacific region**—notably due to challenges in Korea and mainland China resulting in about a **$562 million reduction**—and a **$72 million decrease in Europe, the Middle East & Africa** further impacted income.  **[0001001250-24-000116_el-20240630.htm:61]**  Although the Americas saw an improvement of **$277 million**, this gain, together with **$96 million in restructuring charges**, was not enough to offset the overall declines, leading to a negative operating income for the quarter.  **[0001001250-24-000112_elq4fy2024exhibit991.htm:13]** **[0001001250-24-000116_el-20240630.htm:61]** 

Why did operating income turn negative in Q4 2024?

The decline in operating income in Q2 2025 was driven by several factors, including **substantial goodwill and intangible asset impairments** of **$861 million** related to challenges in key regions and underperformance in travel retail, **significantly higher restructuring and other charges** of **$181 million** compared to the prior year, a **6% decrease in net sales** to **$4.004 billion**, and a marked increase in **operating expense margins** from **59.6% to 90.6%** due to these and other expenses.  **[EL_3414190_7]** **[0001001250-25-000011_el-20241231.htm:59]** **[0001001250-25-000009_fy2025q2exhibit991.htm:1]** **[0001001250-25-000009_fy2025q2exhibit991.htm:15]** 

What caused the further decline in operating income in Q2 2025?

The negative EPS in Q4 2024 resulted primarily from **$471 million in impairment charges** related to the Dr.Jart+ brand, an **operating loss of $233 million** driven by higher operating expenses, and a less favorable **effective tax rate of 22.8%** compared to prior periods. Additionally, the dilutive effect of foreign currency translation and challenges in certain regions contributed to the decline, causing EPS to drop from **$(0.09)** in Q4 2023 to **$(0.79)** in Q4 2024.  **[EL_3399417_6]** **[0001001250-24-000112_elq4fy2024exhibit991.htm:22]** 

Why did EPS become negative in Q4 2024?

The dramatic plunge in Q2 2025 net earnings was primarily due to several factors. **Impairment charges of $861 million** related to goodwill and other intangibles—mostly for the TOM FORD and Too Faced brands—played a major role, compounded by **restructuring and other charges of $181 million**. In addition, there was a **6% decline in net sales** driven by poor performance in key regions (notably an **11% drop in Asia/Pacific**), which resulted in operating deleverage from lower sales volumes and an unfavorable sales mix. These elements together contributed to the sharp deterioration in profitability in Q2 2025.  **[0001001250-25-000011_el-20241231.htm:2]** **[EL_3414190_7]** **[0001001250-25-000011_el-20241231.htm:66]** 

What led to the dramatic plunge in net earnings in Q2 2025?

fc4d1ff85acabb8b2cd450c10879e15cc0f7123018cb297117015623bc777393

Operating Cash Flows turned negative in Q1 2025 primarily due to a combination of **lower net earnings**—with the company reporting a **net loss of $(156) million** compared to **net earnings of $36 million** in Q1 2024—and several adverse changes in operating assets and liabilities. These included a **significant decrease in accounts payable** (a larger decline of **$(440) million** versus **$(207) million** previously), less favorable shifts in inventory and promotional merchandise management, and a reduction in other accrued and noncurrent liabilities. In addition, **higher taxes paid** further contributed to the cash outflows, leading to the overall negative operating cash flow in Q1 2025.  **[0001001250-24-000174_fy2025q1exhibit991.htm:17]** **[0001001250-24-000177_el-20240930.htm:4]** **[0001001250-24-000174_fy2025q1exhibit991.htm:17]** **[0001001250-24-000177_el-20240930.htm:57]** **[EL_3405024_1]** 

Why did Operating Cash Flows turn negative in Q1 2025?

The documents do not provide any information regarding free cash flow or the factors driving a significant jump in free cash flow in FY 2024. They only discuss changes in capital expenditures and the timing of payments for the manufacturing facility in Japan as the reason for a decrease in capital expenditures in FY 2024.  **[0001001250-24-000112_elq4fy2024exhibit991.htm:11]** 

What drove the significant jump in free cash flow in FY 2024?

Operating cash flows dropped in Q2 2025 primarily because of **lower net earnings**—driven by significant impairment charges affecting key brands and broader challenges in certain regions—as well as **unfavorable changes in operating assets and liabilities** (for example, smaller improvements in inventory levels and a decrease in accounts payable). Additionally, while there were positive non‑cash adjustments, they were not sufficient to offset the decline in earnings during the period.  **[0001001250-25-000011_el-20241231.htm:4]** **[EL_3414190_7]** **[EL_3414190_6]** 

Why did Operating Cash Flow drop in Q2 2025 compared to Q2 2024?

The documents do not explicitly explain what caused free cash flow to swing negative in Q1 2025. They do note that the company reduced capital expenditures in Q1 2025 as part of a broader effort to manage cash flow amid **weaker earnings, sales declines, and challenging market conditions**—especially in China and Asia travel retail.  **[0001001250-24-000174_fy2025q1exhibit991.htm:17]** **[EL_3405024_6]**  However, there isn’t a direct statement linking these factors to a negative free cash flow outcome in Q1 2025.

What caused free cash flow to swing negative in Q1 2025?

e54a5d7f7d0d6a460ff1594eedaaf4337d865a333c56219346993a838415ca92

Estee Lauder Companies Inc (EL)

Financials