Estée Lauder has published its annual results for the fiscal year ending June 30, 2025. Although the group has seen a decline in revenue, it has improved its margins and launched a major restructuring program to prepare for a return to growth.
The American luxury beauty brand has unveiled its annual results for fiscal year 2025, marked by a sharp decline in business : the group posted sales of $14.3 billion, down 8% from the previous year. This decline affected all segments, with a 12% drop in skincare, 5% in makeup, and 10% in hair care, while fragrance held steady.
Although sales contracted, the company nevertheless saw its gross margin increase from 71.7% to 74%. This improvement can be attributed to operational efficiency measures and a tighter pricing policy, which helped to limit the impact of market difficulties.
A more pronounced decline in EMEA than in the Americas and Asia-Pacific
By region, the Americas experienced a moderate decline of 4%, penalized by fragile consumer sentiment in the United States and persistent pressure on restocking in traditional stores, although the expansion of brands on Amazon Premium Beauty helped limit the damage.
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