Overview
- Reported net sales rose 4% to $3.48 billion, with organic growth of 3%, marking a return to top-line expansion under the Beauty Reimagined strategy.
- Adjusted earnings per share were $0.32, above expectations, as gross margin improved to about 73.3% and adjusted operating margin widened to 7.3%.
- Fragrance led category results with roughly 13% organic growth driven by Tom Ford, Le Labo and Jo Malone London, while skincare grew 3% and makeup and haircare declined.
- Asia Pacific and Mainland China grew about 8–9% on a travel-retail rebound, offsetting a low-single-digit decline in the Americas tied to department-store weakness.
- The company maintained its fiscal 2026 outlook, cautioned about roughly $100 million in tariff headwinds, advanced PRGP restructuring targeting 5,800–7,000 job cuts, and introduced a new four-region reporting structure that separates Mainland China.