The Estée Lauder Companies reported net sales of $3.550 billion for its third quarter ended March 31, 2025, a decrease of 10% from $3.940 billion in the prior year. Organic net sales decreased 9%, primarily due to pressures in Asia travel retail and subdued Chinese consumer sentiment.
The company exceeded profitability expectations, with adjusted diluted net earnings per common share at $0.65, down 33% from $0.97 in the prior year. Gross margin expanded to 75.0% from 71.9%, attributed to manufacturing efficiencies and lower obsolescence.
Estée Lauder affirmed confidence in returning to sales growth in fiscal 2026, contingent on a meaningful resolution of recently enacted tariffs to mitigate potential negative impacts. For the full fiscal year 2025, the company anticipates total organic net sales to decrease in the range of 9% to 8%, with adjusted diluted EPS expected between $1.30 and $1.55. The quarterly dividend was maintained at $0.35 per share.
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