1 month ago
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On his first earnings call as CEO of The Estée Lauder Companies, Stéphane de La Faverie unveiled a plan called “Beauty Reimagined” to restore sustainable sales growth. Estée Lauder reported a 6% drop in net sales for the second quarter of fiscal year 2025, inspiring the company to take action in a competitive beauty market.
“We lost our agility,” said de La Faverie on Tuesday’s earnings call. “We did not capitalize on the higher growth opportunities quickly enough in channels, markets, media and prestige price tiers, nor fuel new consumer acquisition aggressively enough.”
Skin care was hit the hardest in Q2; the category saw net sales decrease 12%, largely due to declining sales in Asia. Hair care net sales fell 8%, due to poor performance from Aveda. Makeup net sales fell 1%, while fragrance net sales increased 2%. The company attributed growth in fragrance to luxury brands like Le Labo, while makeup declines were offset by growth from Clinique on Amazon. Despite the overall decline in skin care, the company reported that The Ordinary and the Estée Lauder brand were among the top-selling brands in the U.S. on TikTok Shop during Black Friday and Cyber Monday.
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English (US) ·