Research Reports

Prepared Highlights

Full year organic sales declined 8%, with ~2/3 of the decline from travel retail (down 28%) (CEO, prepared).
Q4 organic net sales declined 13%, with declines across all categories except fragrance (CFO, prepared).
Full year gross margin expanded 230 bps to 74%, 50 bps better than May outlook despite volume deleverage (CEO, CFO, prepared).
Full year operating margin contracted 220 bps to 8%, driven by sales declines and increased consumer-facing investments (CEO, prepared).
Full year diluted EPS decreased 42% (CEO, prepared); Q4 diluted EPS was $0.09 vs $0.64 last year (CFO, prepared).
Travel retail represented ~15% of reported sales, down 4 ppts from FY24 and 14 ppts below FY21 peak (CEO, prepared).
Online reached 31% of reported sales, up 3 ppts from FY24 to an all-time record (CEO, prepared).
PRGP cumulative charges as of June 30: $610 million, primarily employee-related (CFO, prepared).
FY25 net cash from operations $1.3 billion vs $2.4 billion last year; CapEx $602 million, down 34% (CFO, prepared).
Impairment charges in Q4: $425 million related to Dr.Jart+ and Too Faced (CFO, prepared).
FY25 effective tax rate 38.8% vs 31% last year (CFO, prepared).

Official Guidance (FY26)

Organic net sales: flat to up 3% (CFO, prepared).
Operating margin: 9.4%–9.9% (CFO, prepared).
Diluted EPS: $1.90–$2.10 (assuming ~365M shares), growth of 26%–39% YoY (CFO, prepared).
Net cash from operations: $1.0B–$1.1B (CFO, prepared).
CapEx: ~4% of sales (CFO, prepared).
Effective tax rate: ~36% (CFO, prepared).
Tariff headwind: ~$100 million impact on profitability, net of mitigation (CFO, prepared).
Q1 organic net sales: down low single digits to slightly positive (CFO, prepared).

Mgmt Quotes

“We ended fiscal ‘25 much better positioned than fiscal ‘24 with healthier trade inventory, especially in travel retail Asia for currently forecasted demand.” (CEO)
“With 3 fiscal years of sales decline and operating margin erosion behind us, we enter fiscal ‘26 with signs of momentum and the start of our turnaround.” (CEO)
“Our strategy is designed to drive long-term valuation and restore growth, improve margins and drive cash.” (CFO)
“We have approved initiatives accounting for over 60% of expected gross benefits and nearly 50% of both anticipated charges and net reduction in positions.” (CFO)
“We are determined to drive cost leverage through sales growth in fiscal ‘27, and bring to bear with urgency PRGP benefits from optimizing our end-to-end operating model.” (CFO)

Prepared Metrics

Metric	Value	Speaker/Context
Full year organic sales growth	-8%	CEO, prepared
Q4 organic sales growth	-13%	CFO, prepared
Full year gross margin	74%	CEO, CFO, prepared
Full year operating margin	8%	CEO, prepared
Q4 operating margin	4%	CFO, prepared
Full year diluted EPS growth	-42%	CEO, prepared
Q4 diluted EPS	$0.09	CFO, prepared
Travel retail % of reported sales	~15%	CEO, prepared
Online % of reported sales	31%	CEO, prepared
PRGP cumulative charges	$610M	CFO, prepared
FY25 net cash from operations	$1.3B	CFO, prepared
FY25 CapEx	$602M	CFO, prepared
FY25 effective tax rate	38.8%	CFO, prepared
FY26 organic sales guidance	Flat to +3%	CFO, prepared
FY26 operating margin guidance	9.4%–9.9%	CFO, prepared
FY26 diluted EPS guidance	$1.90–$2.10	CFO, prepared
FY26 net cash from ops guidance	$1.0B–$1.1B	CFO, prepared
FY26 CapEx guidance	~4% of sales	CFO, prepared
FY26 effective tax rate guidance	~36%	CFO, prepared
FY26 tariff headwind (net)	~$100M	CFO, prepared

Q&A Batch (1-5 of 8)

Q1 — Dara Warren Mohsenian

Topic: 组织结构简化与Beauty Reimagined进展
Key points:
- 7个区域合并为4个（美洲、英国、亚洲及旅游零售、中国独立区域），7月1日起P&L责任从品牌转向区域
- 6个月内完成新领导团队，PRGP超额完成2025财年目标，2026-2027年继续受益
- 补偿调整与Beauty Reimagined执行挂钩
Mgmt stance: 乐观，因组织变革已全面落地且执行速度超出预期

Q2 — Stephen Robert R. Powers

Topic: 零售销售与出货差距及2026财年展望
Key points:
- 2024-2025财年，旅游零售、中国、美国库存均大幅下降
- 2026财年净销售将更紧密跟踪零售，Q1北美仍存差距，全年逐步收窄
- 渠道混合导致部分成本线上线下转移，但均为盈利渠道
Mgmt stance: 乐观，因库存调整已完成，净销售与零售对齐将改善全年表现

Q3 — Lauren Rae Lieberman

Topic: 北美渠道平衡与百货商店暴露
Key points:
- 百货商店占比已低于1/3，Amazon上线11个品牌，Ulta与DTC业务强劲
- 7月北美市场份额增长，The Ordinary、Estée Lauder、Clinique、M·A·C均有贡献
- 计划增加专业多渠道与新零售商占比
Mgmt stance: 乐观，因渠道多元化与7月份额增长显示转型有效

Q4 — Ashley Wallace

Topic: 除旅游零售外有机收入增长指引
Key points:
- 2025财年Q4除旅游零售有机收入为低单位数下降
- 2026财年整体目标为低单位数正增长，中国中单位数、旅游零售温和增长、新兴市场双位数
- 欧洲增速放缓，北美零售已正向但净销售仍待对齐
Mgmt stance: 中性偏乐观，因中国与新兴市场改善，但欧洲与渠道差距仍需时间解决

Q5 — Rupesh Dhinoj Parikh

Topic: 经营利润率指引与毛利率/SG&A分解
Key points:
- 2026财年经营利润率指引9.4%-9.9%，毛利率持平至正增长（已实现230基点扩张）
- 2026年利润率改善主要来自SG&A（非面向消费者部分），长期毛利率仍有空间
- PRGP节省大部分再投资于消费者端，目标为双位数经营利润率
Mgmt stance: 乐观，因SG&A效率提升与PRGP节省将支撑利润率扩张

Q&A Batch (6-8 of 8)

Q6 — Christopher Michael Carey

Topic: 亚洲及欧洲市场近期趋势与展望
Key points:
- 中国出现令人鼓舞的企稳迹象，Q4所有品类和渠道均实现增长，10个品牌零售额增长，包括Jo Malone、TOM FORD等。
- 亚洲其他地区（除中国外）出现放缓，日本仍强劲但受汇率和游客减少影响，韩国市场疲软。
- 欧洲消费者趋势令人担忧，尤其是法国和德国，但西班牙和意大利仍保持正增长；香水品类表现强劲。
- 新兴市场目前占销售额10%，并正在加速实现两位数增长。
Mgmt stance: 中性偏谨慎。管理层认为中国市场企稳并赢得市场份额，但亚太其他地区和欧洲存在疲软，目标是到2026财年底所有四个地理区域均实现正增长。

Q7 — Peter K. Grom

Topic: 2026财年业绩指引的可见度与信心水平
Key points:
- 中国零售额连续两个季度实现中个位数增长，为最大美容市场之一的业务提供了信心。
- 旅游零售在2025财年完成去库存和艰难抉择后，为2026财年增长奠定基础。
- 北美市场零售额开始转正，市场份额增长，增强了竞争力。
- 利润端已完成对成本结构、关税及其缓解措施的详细评估。
Mgmt stance: 谨慎乐观。管理层表示基于现有信息给出了最佳展望，并设置了区间以应对外部波动，同时强调在成本削减和品牌投资方面仍有持续行动力。

Q8 — Andrea Faria Teixeira

Topic: PRGP计划节省、北美零售与出货差距及定价策略
Key points:
- PRGP计划最初宣布节省11至14亿美元，2025财年实际节省远超原定“超50%”的目标。
- 2026财年指引已包含大量PRGP节省，但外包和采购工作带来的收益将在未来几年体现。
- 北美市场2025财年零售与出货有5个百分点差距，预计2026财年第一季度该差距仍大，但全年会收窄。
- 定价策略上，公司仍具定价权并嵌入低个位数涨幅，但也会对部分历史产品进行战略性降价以重振增长。
Mgmt stance: 中性。管理层强调通过PRGP超额交付来推动利润率扩张，同时采取灵活的定价策略，在保持整体提价能力的同时，针对不同价格带和产品进行策略性调整。