Estee Lauder Companies, Inc. (The) 실적 발표

… of Shanghai and Beijing and the Universal App. Obviously, you know that all of this business is being in the midst of being transferred from Sunrise, like I said, to CDF, OneFujing and Avolta. There's a bit of a disruption in the market happening in this moment in time as we are transitioning. And that's the normal course of doing business. Concessions sometimes move from one retailer to another. But the universal app that was a significant part of the business was shut down in Q2 and remains shut down as we speak. So obviously, our ability to just convert is more limited. Now, if you look at China mainland and travel retail, we outperform in China mainland in Q2. And in the total travel retail, to your expectation, maybe we delivered less. My point is it's an entire ecosystem that we need to look at where we are capturing the sales. Going forward is very strong. I want to be very clear. It is actually this change is a good thing, especially at the time where we are managing our inventory very carefully. We are shipping only to the demand, and we see this change being the right thing. We have very strong partnership with CDF, with OneFujing, with Ovalta. locally and globally. And we are in the process of putting the right GDP to make sure that we can accelerate in the course, the remaining course of this fiscal year, but frankly, beyond. And the second part of your question, obviously, like, you know, Japan and the rest, you know, Japan, actually, I'm really happy because we are demonstrating in this moment in time that even the in a disrupted market because, you know, there's some geopolitical tension between various markets in the region. We've seen a dramatic reduction of traffic, even though we've been able to just gain market share. And this is the number one thing that we are focused, no matter if there is growth or no growth, We want to be in a market share position, in a market share growth. And that's what we are demonstrating. Now, early into this calendar year, we're seeing a shift from Japan to Korea and over market in the region. And we are ready to welcome the consumers with all our brands really fully deployed. So I want to make, even though there's a bit of a disruption in Q4 into Q2, we remain extremely confident about the momentum that we are building and our ability to just convert. uh, traffic into sales, uh, across all our brands.

… of Shanghai and Beijing and the Universal App. Obviously, you know that all of this business is being in the midst of being transferred from Sunrise, like I said, to CDF, OneFujing and Avolta. There's a bit of a disruption in the market happening in this moment in time as we are transitioning. And that's the normal course of doing business. Concessions sometimes move from one retailer to another. But the universal app that was a significant part of the business was shut down in Q2 and remains shut down as we speak. So obviously, our ability to just convert is more limited. Now, if you look at China mainland and travel retail, we outperform in China mainland in Q2. And in the total travel retail, to your expectation, maybe we delivered less. My point is it's an entire ecosystem that we need to look at where we are capturing the sales. Going forward is very strong. I want to be very clear. It is actually this change is a good thing, especially at the time where we are managing our inventory very carefully. We are shipping only to the demand, and we see this change being the right thing. We have very strong partnership with CDF, with OneFujing, with Ovalta. locally and globally. And we are in the process of putting the right GDP to make sure that we can accelerate in the course, the remaining course of this fiscal year, but frankly, beyond. And the second part of your question, obviously, like, you know, Japan and the rest, you know, Japan, actually, I'm really happy because we are demonstrating in this moment in time that even the in a disrupted market because, you know, there's some geopolitical tension between various markets in the region. We've seen a dramatic reduction of traffic, even though we've been able to just gain market share. And this is the number one thing that we are focused, no matter if there is growth or no growth, We want to be in a market share position, in a market share growth. And that's what we are demonstrating. Now, early into this calendar year, we're seeing a shift from Japan to Korea and over market in the region. And we are ready to welcome the consumers with all our brands really fully deployed. So I want to make, even though there's a bit of a disruption in Q4 into Q2, we remain extremely confident about the momentum that we are building and our ability to just convert. uh, traffic into sales, uh, across all our brands.

Just one thing, Steve, on the makeup, because I think it's very important. Look, we've been always transparent. We have a lot more work to do on makeup, and we are with the team here in New York, and frankly, with all our teams around the world, we're continuing to just improve things. I'm not going to repeat what Akhil said, but a lot of things that we're doing in this moment in time related to our strategy on Beauty Reimagined is to expand distribution. We've entered TikTok shop in the US with Clinique and Mac, which has allowed actually Mac to just already be in the market share gain in the leap category, which is so important for Mac in the US. Mac has entered TikTok shop in Germany. I said it again, We are about to enter, we are weeks away to enter Sephora US with Mac, which is going to be a big game changer for the brand. And we are working on more opportunities. Innovation is being ramping up. One other thing I've mentioned in my opening remark is the fast acceleration of the innovation coming in less than a year. Remember, I've committed to triple that. We are already exceeding our expectation this year. We were thinking... About 16% of our innovation was going to come in less than a year. It's going to be 19%. The majority of this innovation is coming from makeup. Obviously, we can go much faster in makeup than we can do in the other categories. We are going fast. We are deploying our maker brand in the right distribution. We are rationalizing distribution. I think I also mentioned it in my prepared remark in terms of the freestanding store to make sure that we are more profitable. And we are going to have all the added benefit of the PRGP that continues to flow through, like the P&L this year and in fiscal 27. Because while the PRGP ends at the end of this fiscal year, the execution of it will continue into fiscal 27, fiscal 27, and we will basically get some benefits. So we are on the path for recovery. It is true that skincare is going faster because of the scale. We're very pleased with the progress that we are doing in fragrances. I think makeup requires more scale, and this is why we are deploying our brand and accelerating innovation to be able to just resolve also this issue that we have with the makeup category. Thanks, Steve.

… talk about the Americas in total. We come out of 10 years of market share loss in the Americas. And I'm really proud of actually the momentum that the team have put into this market because When you look at the calendar 25, we've been able to gain share in volume. And that was very important. And I've said it multiple times. We needed to reengage our brand to recruit consumers. And we've been able to do it across many of our categories and many of our brands. So we are now in a volume market share gain. And on top of it, we are also in a share gain economy. in value in skincare led by the ordinary and many of our brands that are pulling the total. So we are seeing some momentum, but we are coming out of obviously having a lot of market loss over the years. So we still have the number one brand and the number two brand in skincare, the number one and the number two brands in makeup. you know, Clinique and The Ordinary in skincare and Clinique and MAC in makeup. We're seeing a lot of strong performance with Estée Lauder and MAC at Ulta. We're very excited and I've communicated it in October, November that we were entering MAC US at C4. And this is actually a big milestone for us after many, many years of not playing in like All specialty multi-universe. So, yes, we are seeing great momentum and we are moving in the right direction when it comes to North America. That being said, there's still a rebalancing of all the channels that we are in the process of doing as highlighted by Beauty or Imagine. We've moved fast with Amazon. We are rebalancing. positioning the department stores, and we are exiting distribution as the distribution erodes, and we are moving fast into the specialty multi. So I believe there is great momentum, and I see a lot of more momentum going forward for our brand overall. Now, the Americas is also a combination of North America and also Latin America. while latin america has been very strong at the beginning of the calendar 25 we've seen a slowdown of consumer consumption in the market and i think one of the main challenges that we see is the enacted tariffs are starting to hurt consumer confidence in latin america but overall i want to say i feel very strong we have momentum in the market Volume share is back, and we are moving our brand. So I do believe we will see additional momentum going forward into the market. And to the second …