Overview
- Net sales rose 4% to about $3.48 billion with organic growth of 3%, and adjusted EPS came in at $0.32, topping estimates.
- Profitability improved, with gross margin near 73.4% and adjusted operating margin at 7.3% as operating income jumped year over year.
- Fragrance led performance with roughly 13% organic growth, while skincare grew about 3% and makeup and haircare declined.
- Asia-Pacific and Mainland China each increased about 9% on strength in travel retail, while the Americas slipped and EUKEM posted growth.
- Management reaffirmed fiscal 2026 sales and adjusted EPS guidance, lowered GAAP EPS, advanced PRGP restructuring toward 5,800–7,000 role reductions, flagged about $100 million in tariff headwinds, and implemented a new four-region reporting structure.