Estée Lauder reported fiscal 2025 revenue of $14.3 billion, down 8% year over year, and has engaged advisors for a strategic portfolio review that could lead to brand exits. The company launched the Beauty Reimagined transformation in May 2024 and consolidated seven regions into four, shifting full P&L responsibility to geographic teams to increase accountability. E-commerce reached a record 31% of revenue, driven by expanded presence on Amazon, TikTok Shop, Shopee and regional Amazon launches. The Ordinary showed strong retail growth and opened an AI-powered flagship on Tmall. Back-end AI applications are delivering measurable results.
Estée Lauder is leaning on AI, digital expansion and product innovation to turn around three years of sales declines. On Tuesday, the company reported fiscal 2025 revenue of $14.3 billion, down 8% year over year, and confirmed it has brought on advisors for a strategic portfolio review - signaling possible brand exits as it works to streamline and recover. "Beauty Reimagined," the transformation plan launched in May 2024 under CEO Stéphane de La Faverie, is beginning to show early momentum.
The reset is Estée Lauder's most significant organizational shift in years. The company collapsed seven regions into four and handed full P&L control to geographic teams, moving away from a global brand-led model. "We are really pushing ambition and accountability across every pillar - brands, regions and functions," said de La Faverie. "The culture is evolving, and the speed of execution we're seeing is extremely encouraging."
One of the biggest bright spots is e-commerce. Online sales hit a record 31% of total revenue during the year, up three points from last year. Growth came from expanded reach across Amazon and TikTok Shop. The company now has 11 brands on Amazon's U.S. Premium Beauty store, up from just three in its fiscal 2024. The company also launched brands on Amazon in Canada and Mexico, and on Shopee and TikTok in Southeast Asia. The Ordinary continues to lead the charge, with high single-digit retail sales growth in the fourth quarter and the launch of an AI-powered flagship store on Tmall in July.
Collection
[
|
...
]