our Akhil everyone. to with Lauder call are earnings for I Estée hello CFO today of and and and pleased Rainey, you, first Companies. The Thank you as be CEO to
with am than other X being partners, strong. build-up ] CEO core months since iconic many defined our are met our [ and ever to named ago, values portfolio our lead are fundamentals Having business stakeholders of convinced I investors employees, retailers, honored more that company, incredibly We and brands. by
foundation strong our brand a given to high-quality products exceptional and leverage talent. have equities, We
to growth next restore consumer-centric become sustainable years as focus clear: solid company. aim the over sales we few adjusted prestige operating beauty and margin a Our the achieved is double-digit best
last me Subdued before our Let to of the we drivers our the China how consumer few years, on and results. performance over much industry realize in beauty sentiment reflecting by pressured turning greatly improved to begin prestige the business. ambition for our challenged plan
in strategically our the disproportionally with share strong we prestige Chinese beauty Given impacted. consumer, were
same prestige channels narrow was of increasing to the on At time, complexity especially the organization, us our into beauty North with the world. prevented the from growth markets around few This America. strength coupled true tapping of and drive prevailing a too focus in
on lost enough. did aggressively higher and we growth capitalize our new fuel enough channels, in opportunities We tiers, agility. the not prestige acquisition quickly Simply consumer media said, price nor markets,
nimbler, levels market, prestige also to We brand entrants by and become often innovation deliver with new happened on-trend did driven of not put in beauty The This trend. with incumbents Ordinary, as magnifying both issues. we our as time indie learn behind own us faster-moving consumers sufficient our our along
that overall didn't too sales lower base we invested growth capabilities ahead large with our matters, in as of materialize. expense our coincided in Compounding areas becoming of business higher-margin
to Our next the Beauty margin sales years. bold these address of and new few growth is strategic a operating over double-digit factors restore vision to adjusted designed solid Reimagined deliver sustainable
faster reimagining serve best and through transformation model globally. to We be consumers our to are biggest in history leaner, operating our more the agile
achieve to Beauty Reimagined has X our action vision. plan priorities
coverage. accelerate best-in-class First, consumer
and channels, markets, business. so, beauty. the our fully media of to put We heart to consumer portfolio to the presence we in tiers the consumer-preferred expand our participate at prestige opportunities To high-growth going plan price in of rapidly are do growth
so, and emerging markets; channel in platforms, to to U.S., By pharmacies U.K. to Western and better geographically capitalize, multi drivers. from our travel doing the the globally specialty growth markets which We have diversify expect numerous areas by we online in retail and Europe. in in
create Second, occasions. in-demand and with innovation subcategories, aim eye towards on-trend We to benefits fast-to-market an deliver transformative innovation.
are fragrance our or like to Skin ] for body, in Leap several expand. lifestyle home For multi-benefit of instance, enter dynamic brands Care there subcategories either like of for and like products, makeup [
We from points will to new sure innovate at market products acquisition. tiers consumer entry across bring prestige attractive price luxury, making to price to for
we tripling launched a we of innovation, look that As to than percentage innovation is to committed year. less step-change are our in the our
to new investments consumer accelerate consumer-facing boost acquisition. Third,
marketing selling increasing visible Moreover, First to to unproductive. foremost, and that do artisanal to for growth. greater A&P investment store plan also freestanding our our and optimizing in and support programs current luxury acceleration eliminating advertising we by brands is drive this this spending, spending includes fragrance
sustainable service been the fuel the half elevated in discounts, expanded fiscal professional today's This addressing PRGP. with to We've first over by driven in our announcement of XXXX year. expenses our efficiencies has XX% [ our restructuring now fewer through PRGP, and progress significant Fourth, obsolescence, fiscal having realizing of growth of workforce. made lowering delivered strategic primarily pricing bold date ] through and excess objective
However, greater is expense necessary. reduction
better industry. driven changes the issues growth further We must growth evolving with described. an have the expense planned deleverage the I've mix We volume prestige projection and by well and beauty structure retail in company-specific industry travel experienced for as significant geopolitical moderated drivers of given business, inception, align since uncertainty the redesign as to our
history, embarking by in our We're an enabled operational biggest company's our transformation expanded on now PRGP.
redesigning investments model and evolving our to how nonconsumer-facing efficient. where stand, and rationalizing our We we further operating significantly much more be are
which the do with adopting we select areas approach latter network partners. more procurement, chain The of new outsourcing of identified global have to proven a and plan supply improving competitive in we to services, efficiencies
partners. of the program design the We well with in advancing our outsourcing are potential
have our We meaningfully profitability. line as more operating sales growth, to more of a Beauty to next operationalized to on priorities we we in improve laser-focused expenses few the mandate will reimagine years. Reimagined.
Fifth, fully margin work. initiatives, drive plan reinvest adjusted realize with the achieve return give on rightsizing And are dual to over the action We we and to again top delivering solid double-digit plan further detail be positioned we consumer-facing way the once to growth sustainable algorithm once leverage operating growth
We so greater our are we for focus In organization. consumer. brands. for for are driving excellence scale they unburdening brands organization, the removing greater smaller our and can be we on execution a doing so, simplifying successful benefits while will complexity our larger of Moreover, large provide more in
amp optimally can resources. flatter allocate our our so strengths strategic clear these we we leaner vision where a decision-making changes, in on through is of As our part will Beauty make are up new The and organization. foundation framework a we faster more that we Reimagined
will consumer desirability, quality innovation, where end-to-end Our we and lead and strengths brand excel: are experience, execution.
the In for are of strengths areas and other organization. support of business, we AI certain through hardwiring our our
exciting combined with cost-effective cases technology moment Their data with enabling manner with the an have use and in and output. company are differentiated are the as in for to to our we resources, AI been investments high-quality in working time and We technology drive partners. best-in-class efficiencies us with proprietary a AI deploy
added operating supply accuracy our are margins we the demand which AI initiatives and that in deploying example, resulted one better inventories, synchronize that demand improvement As sustainable. and we to and average for are our weighted This our our has are leveraging new proof delivers significant material heights. in reaching forecast to restore and stronger needs, production forecast plan
development marketing, to integration AI chain, and office processes ready of We our to into from scale decision-making. dramatically workflows the supply to and back accelerate are improve product beyond
free What's consumer. we teams brand to to creativity the most even exciting, greater AI unleash expect for up resources our by
are plan to we also part we the areas of core and not outsource want to partners work lead business PRGP, that expanded our to As excel. other where external to with of
XX quickly I CEO, Beauty jumpstart Reimagined days. Since became we've to my in moved first
consumer-centric team of designed speed top we talent leaner and action model through a plan announced a and established significantly to structure accountability this collaboration regions First, internally externally. of elevated and with combination support The in improve executive across governance team are new priorities. our new we decision-making, clear morning, recruiting and functions brands, flatter, of
full including of thousand of it of a a This program, additional ago, did strategically and support as said a positions. reduction Board PRGP, our result Second, I decision expanded restructuring and Directors. lightly, take minutes with in few its not several the will we we was
streams simplified and focus across teams execution sales brands, drive more to growth. we work regions to functions on certain to enable external Third, dramatically
mentality. As move it. scale we execute we see bracing endeavor learn early a exit When not an to to Beauty working. to win, what's we will Reimagined, will and test we seek quickly to speed are with Conversely, move we
action. to new and a in to putting act faster as are organizational be and place communication, as more accountability we colleagues empower improve owners structure decisive We collaboration to to
across build Encouragingly, in on action the plan priorities quarter, momentum to demonstrated Beauty some we of Reimagined. as have the X second which
the on launched now have January. The the stores, brands X coverage, Amazon consumer in best-in-class launch accelerate successful Beauty we of As Premium Ordinary U.S. including
time, March, doubled also brand its all commercial was on to it down first strong across which launch heritage on channels. Clinique execution authentic with Last our dermatologist storefront. Amazon At
the Given in launched Premium by gain Canada, demonstrated stores Amazon the prestige Clinique's it U.S. share resounding quarter. X months December, consecutive in second through success of Beauty beauty during
we build these launching China markets with Shop, more Ordinary thrilled month debuting that Line strategy. some Mainland Shopee markets, this in Across disruptive in brands and its presence continued Asia high-growth with The And on to platforms. launch Pacific, proven is our are we TikTok in on
in-store luxury offerings, organic and reach artisanal as by led Le each results Editions double-digit excellent Parfums Labo realized experiential sales fragrance of brand de also We growth. Frédéric the our strong delivered we Malleas and with our extended
the deliver we contrast the Mer plans Mainland and its the gains La in play for and launches In La innovation, rejuvenated demonstrate win. to our China, nighttime As decline in deliver skin Mer driven where in industry's Lauder prestige by new Estée strategic retail, grew nice. usage occasion we transformative we have the care, to Clinique, right can to create
Clinique advanced months X Clinique aspirations. CX, Association debuted our Dermatologist new treatment with Device further in Medical for after less at development the launch. XX Chinese from than brand's CX the epitomizes classification post-procedure China to franchise concept November
Belgium the collaboration and with new January also BioTech announced opening the company's biotechnology accelerate cutting-edge of to We MIT in the innovations. in December Hub in a further
of saw boosted we as to significant second labor our London's Jo men when in the audiences, quarter. investment Malone fruits by consumer-facing growth we reach new seen the Finally, with
speak close, third I our I quarter about outlook. to briefly want Before
business, which satisfied not trend it third Asia are primarily deteriorated second in by reflects travel quarter our quarter retail we While retail Korea. weak sales the our driven in outlook, with
second they [ trends While activations. retail improved sequentially, by still sales fueled in our were ] our negative retail Hainan in the quarter,
expect in of to retail, fiscal maintain net first despite improvement XXXX, levels across inventory quarter, organic the to For the overall half we in in-trade the soft our persist current we our intend significantly retail levels. we made with pressuring sales third trends which Asia travel
third the quarter. In order to increasing strategically we reignite our retail investments growth, in are the sales around consumer-facing world
benefits We the the fund decline. modestly operating deleverage the offset investments to both the expect and meaningful of from PRGP sales these
In our closing, to way margin and while growth we the few realize that over restore sustainable adjusted confident is we ambition to have do, Reimagined sales much operating years. next a are double-digit achieve the solid work Beauty to
in employees, am energized the for thank for over this past that your pivotal months, vision. all you for we what with our shared ideas shared contribution at and can is This passion the To achieve I'm me history. grateful company's our I moment you've together. our and
to I turn over call Akhil. will now the
