The Estée Lauder Companies launched Beauty Reimagined, its new strategic vision, and reported its second quarter fiscal 2025 financial results ended December 31, 2024.
 
Stéphane de La Faverie, President and Chief Executive Officer, commented, 
 
“Today, we are excited to launch Beauty Reimagined, a bold strategic vision to restore sustainable sales growth and achieve a solid double-digit adjusted operating margin over the next few years as we aim to become the best consumer-centric prestige beauty company.”
 
Beauty Reimagined aims to put the consumer first and rapidly expand ELC’s portfolio presence in consumer-preferred, high-growth channels, markets, media, and price tiers to participate in key growth opportunities in prestige beauty.
 
ELC will increase visible advertising spending, optimize marketing programs, and eliminate low-return activities to accelerate new consumer acquisition.
 
To expand profit recovery and growth, ELC plans to adopt a more competitive approach to procurement by further consolidating spending and strategically re-evaluating key supplier relationships, improving supply chain network efficiencies, and outsourcing select services.
 
La Faverie, added,
 
“While we recognize there is much work to do, we are confident that Beauty Reimagined is the way to realize our ambition. We are significantly transforming our operating model to be leaner, faster, and more agile, while taking decisive actions to expand consumer coverage, step-change innovation, and increase consumer-facing investments to better capture growth and drive profitability.”
 
ELC will remove complexity and simplify how work processes to allow for a greater focus on execution excellence for the consumer.
 
New workflows aim to unburden ELC’s smaller brands so that they can be more successful in the organization while driving greater benefits of scale for our larger brands, and empower faster decision-making, in part through a flatter and leaner organization.

Q2 2025 Results

Net sales decreased 6% to $4.0 billion, and organic net sales decreased 6%.
 
Skin Care net sales decreased by 12%, and Makeup net sales decreased by 1%, mostly due to overall challenging retail environments in Asia/Pacific and ELC’s Asia travel retail business.
 
Fragrance net sales increased by 2%, driven by ELC’s Luxury Brands. Le Labo led double-digit growth across geographic regions, partially offset by the decline from Estée Lauder, due in part to reduced shipments of holiday sets. 
 
The growth from Le Labo benefited from hero products, such as its Classic Collection, the City Exclusive scent for Kyoto, and targeted expanded consumer reach.
 
Hair Care net sales decreased 8%, primarily driven by Aveda, reflecting continued softness in the company’s salon channel and the timing of shipments. 

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