Overview

• Estée Lauder’s fiscal 2025 fourth-quarter net sales fell 12% to about $3.4 billion and it reported a wider quarterly loss of $546 million, with full-year sales down 8%.
• The company guided fiscal 2026 sales growth between flat and 3% and projected adjusted EPS of $1.90 to $2.10, citing about a $100 million profitability hit from U.S. tariffs.
• Management is cutting inventory and promotions, executing a restructuring that will eliminate 5,800 to 7,000 roles, and shifting more China-bound supply to plants in Japan and Europe.
• Coty’s fourth-quarter revenue declined 8% to $1.25 billion with an adjusted loss of $0.05 per share, and it expects like-for-like sales to fall 6% to 8% in the first quarter before improving in the second half of fiscal 2026.
• To offset tariff costs, Coty plans U.S. price increases in premium fragrances and is transferring U.S.-sold mass and entry-prestige fragrance production to a domestic plant, with fragrance continuing to outperform skincare and mass color cosmetics for both companies.