Estée Lauder Announces Profit Recovery and Restructuring Plan

The Estée Lauder Companies (EL) has released an update to notify the public and investors about termination and asset disposition expenses.

The Estée Lauder Companies Inc. has initiated a Profit Recovery Plan aimed at strengthening profit margins by 2025-2026. This entails enhancing gross margins, reducing costs, and investing in consumer engagement. An accompanying restructuring program will cut global positions by 3-5%, leading to charges of $500-$700 million but resulting in annual benefits of $350-$500 million. These benefits are in addition to the previously projected $800 million to $1 billion gains, with further details pending as the plan progresses.

For further insights into EL financials, check out TipRanks’ Financials page.

For a comprehensive understanding of the announcement, you can read the full document here.