EL 8-K
Estee Lauder Companies Inc (EL)
8-K
2025-10-02
For: 2025-10-02
View Original
Added on
April 08, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 7.01 Regulation FD Disclosure
As previously disclosed by The Estée Lauder Companies Inc. (the "Company") in its Annual Report on Form 10-K for the fiscal year ended June 30, 2025, to enhance accountability and streamline operations within the organization, as well as to align with its recently announced leadership changes, the Company has reorganized its geographic regions. Beginning with the Company's fiscal 2026 first quarter, the Company will be reporting its fiscal 2026 and comparative fiscal 2025 results by geographic region under the new regional structure. The Company's four geographic regions, effective July 1, 2025, are:
•The Americas, which will continue to include North America and Latin America;
•Europe, the United Kingdom and Ireland and Emerging Markets ("EUKEM"), which will continue to include the geographic markets of its previously reported Europe, the Middle East & Africa region, will exclude its global travel retail business, and will include its Southeast Asian Emerging Markets, previously reported in its Asia/Pacific region, of Indonesia, Malaysia, the Philippines, Thailand and Vietnam;
•Asia/Pacific, which will continue to include certain geographic markets of its previously reported Asia/Pacific region, such as Japan, Korea, Hong Kong SAR, and Australia, among others, and will also include its global travel retail business, previously reported in its Europe, the Middle East & Africa region; and
•Mainland China, previously reported in its Asia/Pacific region, will now be reported as a separate region.
In connection with the reorganization of the Company's geographic regions, the Company has changed its methodology used to report certain global and regional activity to reflect management's view of the business. The primary revisions to operating results by region include (i) excluding the impacts of intercompany royalty activities globally, (ii) the allocation of corporate expenses to all regions, including global support functions, which had historically been reported in The Americas region, and (iii) the allocation of impacts from the Company's manufacturing facilities to all regions, which had historically been reported in the region where the facilities are located. These changes were made to reflect management's view that these activities are conducted to benefit the Company on a global basis.
The reorganization of the Company's regional structure does not impact the Company's operating segments. As we have done historically, we continue to develop our strategy, assess performance and allocate resources by product category and will continue to report results by product category.
To provide investors with historical information on a basis consistent with its new geographic region reporting structure, the Company has recast its historical results by geographic region to conform to the new regional structure. Attached as Exhibit 99.1 are schedules recasting geographic region net sales and operating income for the previously reported fiscal years ended June 30, 2025 and 2024, and each quarterly and year-to-date period within those fiscal years.
The changes to the Company's geographic regions and allocation methodology discussed above affect only the manner in which the Company’s results by geographic region were previously reported. These changes have no impact to any previously reported consolidated results. The information in this Current Report on Form 8-K, including Exhibit 99.1, should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. See Exhibit Index below, incorporated herein by reference.
Exhibit Index
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE ESTÉE LAUDER COMPANIES INC. | |||||||||||
| Date: | October 2, 2025 | By: | /s/ Akhil Shrivastava | ||||||||
| Akhil Shrivastava | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
3
Exhibit 99.1
The Estée Lauder Companies Inc.
Recast Historical Financial Information to Reflect the Current Geographic Region Structure
(Unaudited)
To provide investors with historical information on a basis consistent with its new geographic region reporting structure, The Estée Lauder Companies Inc. (the “Company”) has recast its historical results by geographic region to conform to the new regional structure. The Company's four geographic regions, effective July 1, 2025, are:
•The Americas, which will continue to include North America and Latin America;
•Europe, the United Kingdom and Ireland and Emerging Markets ("EUKEM"), which will continue to include the geographic markets of its previously reported Europe, the Middle East & Africa region, will exclude its global travel retail business, and will include its Southeast Asian Emerging Markets, previously reported in its Asia/Pacific region, of Indonesia, Malaysia, the Philippines, Thailand and Vietnam;
•Asia/Pacific, which will continue to include certain geographic markets of its previously reported Asia/Pacific region, such as Japan, Korea, Hong Kong SAR, and Australia, among others, and will also include its global travel retail business, previously reported in its Europe, the Middle East & Africa region; and
•Mainland China, previously reported in its Asia/Pacific region, will now be reported as a separate region.
In connection with the reorganization of the Company's geographic regions, the Company has changed its methodology used to report certain global and regional activity to reflect management's view of the business. The primary revisions to operating results by region include (i) excluding the impacts of intercompany royalty activities globally, (ii) the allocation of corporate expenses to all regions, including global support functions, which had historically been reported in The Americas region, and (iii) the allocation of impacts from the Company's manufacturing facilities to all regions, which had historically been reported in the region where the facilities are located. These changes were made to reflect management's view that these activities are conducted to benefit the Company on a global basis.
1
FISCAL 2025 AND 2024 RESULTS BY REGION
| Results by Geographic Region (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| Net Sales | Percentage Change1 | Operating (Loss) Income | Percentage Change | |||||||||||||||||||||||
| ($ in millions) | 2024 | 2023 | Reported Basis | Impact of Foreign Currency Translation | Organic Net Sales (Non-GAAP) | 2024 | 2023 | Reported Basis | ||||||||||||||||||
| The Americas | $ | 1,197 | $ | 1,217 | (2) | % | 1 | % | (1) | % | $ | 19 | $ | (17) | 100+% | |||||||||||
| EUKEM | 868 | 825 | 5 | (2) | 3 | (30) | 4 | (100+) | ||||||||||||||||||
| Asia/Pacific | 806 | 905 | (11) | — | (11) | 37 | 112 | (67) | ||||||||||||||||||
| Mainland China | 490 | 571 | (14) | (2) | (16) | (41) | 1 | (100+) | ||||||||||||||||||
| Subtotal | $ | 3,361 | $ | 3,518 | (4) | % | (1) | % | (5) | % | $ | (15) | $ | 100 | (100+)% | |||||||||||
| Returns/charges associated with restructuring and other activities | — | — | (106) | (2) | ||||||||||||||||||||||
| Total | $ | 3,361 | $ | 3,518 | (4) | % | (1) | % | (5) | % | $ | (121) | $ | 98 | (100+)% | |||||||||||
| Non-GAAP Adjustments to As Reported Operating (Loss) Income: | ||||||||||||||||||||||||||
| Returns/charges associated with restructuring and other activities | 106 | 2 | ||||||||||||||||||||||||
| The Americas - Changes in fair value of DECIEM acquisition-related stock options | — | 8 | ||||||||||||||||||||||||
| The Americas - Talcum litigation settlement agreements | 159 | — | ||||||||||||||||||||||||
| Adjusted Operating Income - Non-GAAP | $ | 144 | $ | 108 | 33 | % | ||||||||||||||||||||
1Percentages are calculated on an individual basis. | ||||||||||||||||||||||||||
2
| Results by Geographic Region (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||||||||||||
| Net Sales | Percentage Change1 | Operating (Loss) Income | Percentage Change | |||||||||||||||||||||||
| ($ in millions) | 2024 | 2023 | Reported Basis | Impact of Foreign Currency Translation | Organic Net Sales (Non-GAAP) | 2024 | 2023 | Reported Basis | ||||||||||||||||||
| The Americas | $ | 1,209 | $ | 1,239 | (2) | % | 1 | % | (1) | % | $ | (875) | $ | 145 | (100+)% | |||||||||||
| EUKEM | 1,085 | 1,064 | 2 | — | 2 | 185 | 103 | 80 | ||||||||||||||||||
| Asia/Pacific | 888 | 1,069 | (17) | 1 | (16) | 191 | 214 | (11) | ||||||||||||||||||
| Mainland China | 822 | 908 | (9) | (1) | (10) | 100 | 120 | (17) | ||||||||||||||||||
| Subtotal | $ | 4,004 | $ | 4,280 | (6) | % | — | % | (6) | % | $ | (399) | $ | 582 | (100+)% | |||||||||||
| Returns/charges associated with restructuring and other activities | — | (1) | (181) | (8) | ||||||||||||||||||||||
| Total | $ | 4,004 | $ | 4,279 | (6) | % | — | % | (6) | % | $ | (580) | $ | 574 | (100+)% | |||||||||||
| Non-GAAP Adjustments to As Reported Operating (Loss) Income: | ||||||||||||||||||||||||||
| Returns/charges associated with restructuring and other activities | 181 | 8 | ||||||||||||||||||||||||
The Americas - Goodwill and other intangible asset impairments | 861 | — | ||||||||||||||||||||||||
The Americas - Change in fair value of DECIEM acquisition-related stock options | — | (5) | ||||||||||||||||||||||||
| Adjusted Operating Income - Non-GAAP | $ | 462 | $ | 577 | (20) | % | ||||||||||||||||||||
1Percentages are calculated on an individual basis. | ||||||||||||||||||||||||||
3
| Results by Geographic Region (Unaudited) | ||||||||||||||||||||||||||
| Six Months Ended December 31, | ||||||||||||||||||||||||||
| Net Sales | Percentage Change1 | Operating (Loss) Income | Percentage Change | |||||||||||||||||||||||
| ($ in millions) | 2024 | 2023 | Reported Basis | Impact of Foreign Currency Translation | Organic Net Sales (Non-GAAP) | 2024 | 2023 | Reported Basis | ||||||||||||||||||
| The Americas | $ | 2,406 | $ | 2,456 | (2) | % | 1 | % | (1) | % | $ | (856) | $ | 128 | (100+)% | |||||||||||
| EUKEM | 1,953 | 1,889 | 3 | (1) | 2 | 155 | 107 | 45 | ||||||||||||||||||
| Asia/Pacific | 1,694 | 1,974 | (14) | 1 | (13) | 228 | 326 | (30) | ||||||||||||||||||
| Mainland China | 1,312 | 1,479 | (11) | (1) | (12) | 59 | 121 | (51) | ||||||||||||||||||
| Subtotal | $ | 7,365 | $ | 7,798 | (6) | % | — | % | (6) | % | $ | (414) | $ | 682 | (100+)% | |||||||||||
| Returns/charges associated with restructuring and other activities | — | (1) | (287) | (10) | ||||||||||||||||||||||
| Total | $ | 7,365 | $ | 7,797 | (6) | % | — | % | (6) | % | $ | (701) | $ | 672 | (100+)% | |||||||||||
Non-GAAP Adjustments to As Reported Operating (Loss) Income: | ||||||||||||||||||||||||||
| Returns/charges associated with restructuring and other activities | 287 | 10 | ||||||||||||||||||||||||
The Americas - Goodwill and other intangible asset impairments | 861 | — | ||||||||||||||||||||||||
The Americas - Talcum litigation settlement agreements | 159 | — | ||||||||||||||||||||||||
The Americas - Change in fair value of DECIEM acquisition-related stock options | — | 3 | ||||||||||||||||||||||||
| Adjusted Operating Income - Non-GAAP | $ | 606 | $ | 685 | (12) | % | ||||||||||||||||||||
1Percentages are calculated on an individual basis. | ||||||||||||||||||||||||||
4
| Results by Geographic Region (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| Net Sales | Percentage Change1 | Operating Income | Percentage Change | |||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | Reported Basis | Impact of Foreign Currency Translation | Organic Net Sales (Non-GAAP) | 2025 | 2024 | Reported Basis | ||||||||||||||||||
| The Americas | $ | 1,063 | $ | 1,129 | (6) | % | 2 | % | (4) | % | $ | 67 | $ | 45 | 49 | % | ||||||||||
| EUKEM | 785 | 836 | (6) | 1 | (5) | 28 | 30 | (7) | ||||||||||||||||||
| Asia/Pacific | 1,006 | 1,295 | (22) | 1 | (21) | 232 | 337 | (31) | ||||||||||||||||||
| Mainland China | 696 | 680 | 2 | 1 | 4 | 76 | 137 | (45) | ||||||||||||||||||
| Subtotal | $ | 3,550 | $ | 3,940 | (10) | % | 1 | % | (9) | % | $ | 403 | $ | 549 | (27) | % | ||||||||||
| Returns/charges associated with restructuring and other activities | — | — | (97) | (18) | ||||||||||||||||||||||
| Total | $ | 3,550 | $ | 3,940 | (10) | % | 1 | % | (9) | % | $ | 306 | $ | 531 | (42) | % | ||||||||||
| Non-GAAP Adjustments to As Reported Operating Income: | ||||||||||||||||||||||||||
| Returns/charges associated with restructuring and other activities | 97 | 18 | ||||||||||||||||||||||||
| The Americas - Changes in fair value of DECIEM acquisition-related stock options | — | 5 | ||||||||||||||||||||||||
| Adjusted Operating Income - Non-GAAP | $ | 403 | $ | 554 | (27) | % | ||||||||||||||||||||
1Percentages are calculated on an individual basis. | ||||||||||||||||||||||||||
5
| Results by Geographic Region (Unaudited) | ||||||||||||||||||||||||||
| Nine Months Ended March 31, | ||||||||||||||||||||||||||
| Net Sales | Percentage Change1 | Operating (Loss) Income | Percentage Change | |||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | Reported Basis | Impact of Foreign Currency Translation | Organic Net Sales (Non-GAAP) | 2025 | 2024 | Reported Basis | ||||||||||||||||||
| The Americas | $ | 3,469 | $ | 3,585 | (3) | % | 1 | % | (2) | % | $ | (789) | $ | 173 | (100+)% | |||||||||||
| EUKEM | 2,738 | 2,725 | — | — | — | 183 | 137 | 34 | ||||||||||||||||||
| Asia/Pacific | 2,700 | 3,269 | (17) | 1 | (16) | 460 | 663 | (31) | ||||||||||||||||||
| Mainland China | 2,008 | 2,159 | (7) | — | (7) | 135 | 258 | (48) | ||||||||||||||||||
| Subtotal | $ | 10,915 | $ | 11,738 | (7) | % | — | % | (7) | % | $ | (11) | $ | 1,231 | (100+)% | |||||||||||
| Returns/charges associated with restructuring and other activities | — | (1) | (384) | (28) | ||||||||||||||||||||||
| Total | $ | 10,915 | $ | 11,737 | (7) | % | — | % | (7) | % | $ | (395) | $ | 1,203 | (100+)% | |||||||||||
Non-GAAP Adjustments to As Reported Operating (Loss) Income: | ||||||||||||||||||||||||||
| Returns/charges associated with restructuring and other activities | 384 | 28 | ||||||||||||||||||||||||
The Americas - Goodwill and other intangible asset impairments | 861 | — | ||||||||||||||||||||||||
The Americas - Talcum litigation settlement agreements | 159 | — | ||||||||||||||||||||||||
The Americas - Change in fair value of DECIEM acquisition-related stock options | — | 8 | ||||||||||||||||||||||||
Adjusted Operating Income - Non-GAAP | $ | 1,009 | $ | 1,239 | (19) | % | ||||||||||||||||||||
1Percentages are calculated on an individual basis. | ||||||||||||||||||||||||||
6
| Results by Geographic Region (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended June 30, | ||||||||||||||||||||||||||
| Net Sales | Percentage Change1 | Operating (Loss) Income | Percentage Change | |||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | Reported Basis | Impact of Foreign Currency Translation | Organic Net Sales (Non-GAAP) | 2025 | 2024 | Reported Basis | ||||||||||||||||||
| The Americas | $ | 941 | $ | 994 | (5) | % | 1 | % | (4) | % | $ | (29) | $ | (5) | (100+)% | |||||||||||
| EUKEM | 828 | 814 | 2 | (5) | (3) | (38) | (35) | (9) | ||||||||||||||||||
| Asia/Pacific | 906 | 1,318 | (31) | — | (31) | (280) | (153) | (83) | ||||||||||||||||||
| Mainland China | 733 | 745 | (2) | — | (1) | 59 | 56 | 5 | ||||||||||||||||||
| Subtotal | $ | 3,408 | $ | 3,871 | (12) | % | (1) | % | (13) | % | $ | (288) | $ | (137) | (100+)% | |||||||||||
| Returns/charges associated with restructuring and other activities | 3 | — | (102) | (96) | ||||||||||||||||||||||
| Total | $ | 3,411 | $ | 3,871 | (12) | % | (1) | % | (13) | % | $ | (390) | $ | (233) | (67) | % | ||||||||||
| Non-GAAP Adjustments to As Reported Operating Loss: | ||||||||||||||||||||||||||
| Returns/charges associated with restructuring and other activities | 102 | 96 | ||||||||||||||||||||||||
| The Americas - Other intangible asset impairments | 50 | — | ||||||||||||||||||||||||
Asia/Pacific - Goodwill and other intangible asset impairments | 375 | 471 | ||||||||||||||||||||||||
The Americas - Changes in fair value of DECIEM acquisition-related stock options inclusive of payroll tax | — | 6 | ||||||||||||||||||||||||
| EUKEM - Changes in fair value of DECIEM acquisition-related stock options inclusive of payroll tax | — | 9 | ||||||||||||||||||||||||
| Adjusted Operating Income - Non-GAAP | $ | 137 | $ | 349 | (61) | % | ||||||||||||||||||||
1Percentages are calculated on an individual basis. | ||||||||||||||||||||||||||
7
| Results by Geographic Region (Unaudited) | ||||||||||||||||||||||||||
| Year Ended June 30, | ||||||||||||||||||||||||||
| Net Sales | Percentage Change1 | Operating (Loss) Income | Percentage Change | |||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | Reported Basis | Impact of Foreign Currency Translation | Organic Net Sales (Non-GAAP) | 2025 | 2024 | Reported Basis | ||||||||||||||||||
| The Americas | $ | 4,410 | $ | 4,579 | (4) | % | 1 | % | (3) | % | $ | (818) | $ | 168 | (100+)% | |||||||||||
| EUKEM | 3,566 | 3,539 | 1 | (1) | (1) | 145 | 102 | 42 | ||||||||||||||||||
| Asia/Pacific | 3,606 | 4,587 | (21) | 1 | (21) | 180 | 510 | (65) | ||||||||||||||||||
| Mainland China | 2,741 | 2,904 | (6) | — | (6) | 194 | 314 | (38) | ||||||||||||||||||
| Subtotal | $ | 14,323 | $ | 15,609 | (8) | % | — | % | (8) | % | $ | (299) | $ | 1,094 | (100+)% | |||||||||||
| Returns/charges associated with restructuring and other activities | 3 | (1) | (486) | (124) | ||||||||||||||||||||||
| Total | $ | 14,326 | $ | 15,608 | (8) | % | — | % | (8) | % | $ | (785) | $ | 970 | (100+)% | |||||||||||
| Non-GAAP Adjustments to As Reported Operating (Loss) Income: | ||||||||||||||||||||||||||
| Returns/charges associated with restructuring and other activities | 486 | 124 | ||||||||||||||||||||||||
| The Americas - Goodwill and other intangible asset impairments | 911 | — | ||||||||||||||||||||||||
| Asia/Pacific - Goodwill and other intangible asset impairments | 375 | 471 | ||||||||||||||||||||||||
The Americas - Talcum litigation settlement agreements | 159 | — | ||||||||||||||||||||||||
The Americas - Changes in fair value of DECIEM acquisition-related stock options inclusive of payroll tax | — | 14 | ||||||||||||||||||||||||
| EUKEM - Changes in fair value of DECIEM acquisition-related stock options inclusive of payroll tax | — | 9 | ||||||||||||||||||||||||
| Adjusted Operating Income - Non-GAAP | $ | 1,146 | $ | 1,588 | (28) | % | ||||||||||||||||||||
1Percentages are calculated on an individual basis. | ||||||||||||||||||||||||||
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This document includes some non-GAAP financial measures relating to charges associated with restructuring and other activities and adjustments, as well as organic net sales. Included herein are reconciliations between the non-GAAP financial measures and the most directly comparable GAAP measures for net sales and operating income before and after these items. The Company uses certain non-GAAP financial measures, among other financial measures, to evaluate its operating performance, which represent the manner in which the Company conducts and views its business. Management believes that excluding certain items that are not comparable from period-to-period, or do not reflect the Company’s underlying ongoing business, provides transparency for such items and helps investors and others compare and analyze operating performance from period-to-period. In the future, the Company expects to incur charges or adjustments similar in nature to those presented herein; however, the impact to the Company’s results in a given period may be highly variable and difficult to predict. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by, or determined in a manner consistent with, other companies. While the Company considers the non-GAAP measures useful in analyzing its results, they are not intended to replace, or act as a substitute for, any presentation included in the consolidated financial statements prepared in conformity with U.S. GAAP.
The Company operates on a global basis, with the majority of its net sales generated outside the United States. Accordingly, fluctuations in foreign currency exchange rates can affect the Company’s results of operations. Therefore, the Company presents certain net sales, operating results, provision for income taxes and diluted net earnings per common share information excluding the effect of foreign currency rate fluctuations to provide a framework for assessing the performance of its underlying business outside the United States. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company calculates constant currency information by translating current-period results using prior-year period monthly average foreign currency exchange rates and adjusting for the period-over-period impact of foreign currency cash flow hedging activities.
9