Estée Lauder reported double-digit declines in revenue last quarter. However, those results beat low expectations, as management touted the company's cost-cutting plan. The new CEO projects a return to growth in 2026,

Q4 2025 Management View CEO Stephane de la Faverie opened with a remembrance of Chairman Emeritus Leonard A. Lauder and reaffirmed commitment to regaining prestige beauty leadership. The CEO emphasized,

Over the past five years, the stock has displayed a recurring pattern of negative one-day returns after earnings.

Key Points Non-GAAP earnings per share fell 85% year over year to $0.09. Revenue declined 12% to $3.41 billion (GAAP), Non-GAAP revenue for FY2025 significantly exceeded analyst expectations. Gross margin improved to 72.

Analysts expect the New York-based company to report quarterly earnings at 9 cents per share, down from 64 cents per share in the year-ago period. Estée Lauder projects to report quarterly revenue of $3.4 billion, compared to the $3.87 billion it generated last year during the same quarter, according to data from Benzinga Pro.

Estée Lauder ( NYSE: EL) realized its third consecutive quarter of declining sales, reflecting double digit declines across most categories and across all geographic regions. Coupled with eroding profits and a warning that tariffs would shave $100M off the company’s bottom-line, shares were under heavy selling pressure into Wednesday’s open.

The company expects tariffs to impact profitability by $100 million, but is forecasting a return to growth next year.

The Estée Lauder Companies reported an 8% drop in net sales to US$14,326m for the fiscal full year 2025, closing out a challenging year marked by declining demand across regions and product lines, with the company’s Global Travel Retail business, particularly in Asia, experiencing strong double-digit sales declines, weighing heavily on results.