Cosmetics Giant Estee Lauder Estee Lauder announced a large -scale reorganization plan on Tuesday, including reducing up to 7,000 employment, as it is working on sustainable demand.
The company based in the New York loader family and dominated Manhattan is about 10 % of the labor force as part of the expanded turnaround plan under the new CEOSTéPhanedela FaVerie inherited on January 1st. He said that it would be reduced.
The company currently expects the third quarter profits to be less than expected. In particular, we quote issues in Asian travel retailers at airports and travel destinations in Korea and China.
“In the third quarter, the overall soft retail trends will continue in the Asian travel retailer, and will greatly apply pressure on organic net sales,” said La Feverie.
Stocks decreased by 17 % at noon transactions.
The company, which owns brands such as CLINIQUE and Mac, has said that it will wait to release the annual forecast for the “evolution of geopolitical uncertainty around the world.”
Estee Lauder was hit a lot for months. Faced by high -end fragrances and weak demand for makeup products, we are facing strict competition with rivals such as L'Oréal, which is quicker to push new trendy products more quickly.
The shares have decreased by more than 50 % in the last 12 months.
Estee Lauder faces the issue of promoting China's sales growth, accounting for about one -quarter of the company's sales in 2024.
“Simply put, we have lost Tenshi Ility. De La Fevere has not taken advantage of higher growth, a post -revenue call.
It is expected that the net sales will decrease between 10 % and 12 % in three months until March 31. According to Bloomberg。
A 78 -year -old cosmetics giant said that the coordinated profits per share would be 79 % soaring in the current quarter than the previous year.
“We are not satisfied with the third quarter outlook, but it reflects the weak trends in the retail sales of Asian Travel Retards, which worsened in the second quarter of South Korea,” said Delafa Berry. Ta.
“In the third quarter, it is anticipated that the overall soft retail trend will last in the Asian travel retail business, and despite the improvement of the stock level in the transaction in the first half of the 2025 fiscal year, it is an organic net sales. Current levels are applied.
In the second quarter of December 31, EstéelAuder reported a $ 590 million net income loss. The company also reported a 4 billion dollar revenue of less than $ 4.3 billion in the previous year.
De La Faverie stated that his turnaround plan focuses on new trendy cosmetics to consumers quickly and more marketing them.
The 7,000 job reductions include a 3,000 -influenced position announced last February.
The company said that the terms of termination and reorganization would cost $ 1.6 billion to $ 1.6 billion.
“In the expansion plan, the company has further converted the company's sales model, supplies funds to sales growth, recovers a solid double -digit adjusted sales margin over the next few years, and has potential tariffs globally. It is designed to continue to manage external volatility.
On Tuesday, the company has also been nominated by the Jane Hearts Mark's highest brand, and has announced that its brand will be organized in categories such as skin care and makeup.
The company also divides the organization into four geographic groups.
