Thu, May 1, 4:03 PM (11 days ago)
**The Estée Lauder Companies Inc. (EL, NYSE)** **Q1 2025 Financial Summary:** **Revenue & Profit Margins:** - **Revenue:** $3.55 billion, down 10% YoY. - **Gross Profit Margin:** 75.0%, up from 71.9% YoY. - **Operating Income:** $306 million, down 42% YoY. - **Net Income:** $159 million, down 52% YoY. - **EPS:** $0.44, down 52% YoY. **Cash Flow:** - **Operating Cash Flow:** $671 million. - **Investing Cash Flow:** -$408 million. - **Financing Cash Flow:** -$1.02 billion. **Quarterly Performance:** - **Skin Care:** -12% YoY. - **Makeup:** -9% YoY. - **Fragrance:** -3% YoY. - **Hair Care:** -12% YoY. - **Americas:** -6% YoY. - **Europe, Middle East & Africa:** -18% YoY. - **Asia/Pacific:** -3% YoY. **Trends & Uncertainties:** - **Global Challenges:** Volatility, uncertainty, subdued consumer sentiment in China and the U.S., political and social unrest in Korea. - **Restructuring:** Expanded Profit Recovery and Growth Plan (PRGP) to improve gross margin, lower cost base, and reduce overhead expenses. - **Impairment:** $861 million charge for TOM FORD and $75 million for Too Faced. - **Talcum Litigation:** $159 million charge for settlement agreements. **Future Operations Impact:** - **PRGP:** Aims to yield annual target gross benefits of $800-$1,000 million, with a portion reinvested in consumer-facing activities. - **Talcum Litigation:** Expects to mitigate future exposure with settlement agreements. - **Impairment:** Potential for additional charges if business environments for TOM FORD or Too Faced deteriorate. **Key Metrics:** - **Debt:** $7.3 billion. - **Cash & Equivalents:** $2.63 billion. - **Share Repurchase:** Suspended since December 2022. - **Dividends:** $0.35 per share declared for Q2 2025. **Outlook:** - Expects continued volatility and uncertainty. - Focus on cost efficiencies, innovation, and strategic pricing actions. - Potential material adverse effect on fiscal 2026 profitability due to high tariffs.