Overview

• Fourth-quarter net sales fell 12% to $3.4 billion, with a net loss of $546 million and a diluted loss per share of $1.51.
• Full-year fiscal 2025 net sales declined 8% to $14.3 billion, with an operating loss reported for the year.
• For fiscal 2026, the company guides to flat to 3% sales growth and adjusted EPS of $1.90 to $2.10, and it forecasts about a $100 million tariff hit to profitability.
• Skincare and makeup were the weakest categories in Q4, with skincare down 17% and makeup down 12%, while fragrance rose 2% on strength from Le Labo and Jo Malone London.
• Management is executing a restructuring that will eliminate 5,800 to 7,000 roles and has begun a portfolio review, as shares fell roughly 5% to 6% on the results and outlook.