Overview
- Net sales rose about 4% to roughly $3.48 billion with organic growth of ~3%, and adjusted EPS of $0.32 topped estimates.
- Profitability improved as gross margin expanded about 100 basis points to 73.4% and adjusted operating margin reached ~7.3%.
- Fragrance led with roughly 13% organic growth, while skin care increased ~3%, makeup fell ~2% and hair care declined ~7%.
- Mainland China sales grew ~9% and Asia Pacific advanced on travel retail strength, as North America softened with department-store weakness.
- The company continued executing its PRGP restructuring, reaffirmed fiscal 2026 sales guidance (reported 2%–5%, organic 0%–3%) and flagged roughly $100 million in tariff headwinds; a new four-region reporting structure now separates Mainland China and places global travel retail within Asia/Pacific.