The Estée Lauder Companies reported its financial results for its fiscal year ended June 30, 2025.

Organic net sales decreased by 8% to $14.3 billion from $15.6 billion last year.

Stéphane de La Faverie, President and CEO, said, 

“Having closed fiscal 2025 as expected, we remain wholly focused on continuing to execute our strategic vision of Beauty Reimagined with excellence. Despite continued volatility in the external environment, we embarked on fiscal 2026 with signs of momentum and confidence in our outlook to deliver organic sales growth this year after three years of declines and to begin rebuilding operating profitability in pursuit of a solid double-digit adjusted operating margin over the next few years.”

Results by Category

Skincare net sales decreased 12%, mostly from declines from Estée Lauder and La Mer.

Makeup decreased by 5%, driven by declines from M.A.C., Estee Lauder, the lip and eye subcategories from Too Faced, and the face subcategory from Bobbi Brown. Partially offsetting these declines, Clinique’s net sales growth across all geographic regions, led by the face and lip subcategories.

Fragrance net sales remained flat due to a mid-single-digit increase from Luxury brands, and strong double-digit growth from Le Labo and Kilian Paris. Declines from Estée Lauder’s Pleasures and Beautiful product franchises and from the Clinique Happy product franchise offset the results. 

Hair Care net sales decreased by 10% driven by a decline from Aveda and lower net sales from The Ordinary, as well as Bumble and bumble. Partially offsetting the decline was an improvement in Haircare operating results. 

Results by Region

There was a strong double-digit net sales decline from the ELC’s global travel retail business, which is included in Europe, the Middle East & Africa (EMEA), driven by lower net sales in Asia travel retail. 

Mid-single-digit net sales decline in mainland China, primarily due to the impacts from an overall challenging retail environment, including subdued consumer sentiment.

Low-single-digit net sales decline in North America, reflected ongoing retail softness for some brands as well as pressures from subdued consumer confidence. The expansion of 11 brands into the Amazon Premium Beauty store offsets these results. 

Fourth Quarter Results

For the three months ended June 30, 2025, organic net sales decreased by 13%, compared to the prior-year period, reflecting declines across all product categories, except Fragrance, and all geographic regions.

Skincare and Makeup led the decline in sales, driven by Estée Lauder and La Mer, reflecting the challenges in the ELC’s Asia travel retail business.

Makeup net sales decreased 12%, primarily reflecting lower net sales from Estée Lauder, declines across all geographic regions from M.A.C., and lower net sales in North America.

Net sales declined 15% in Hair Care, primarily because of ongoing brick-and-mortar challenges in North America, which outweigh the benefit from the launch of Aveda in Amazon’s U.S. Premium Beauty store.

However, Fragrance net sales increased 2%, fueled by the company’s Luxury fragrance brands. Le Labo and Jo Malone London led growth.