Estee Lauder reported a net loss of $156 million for Q1 FY2024, compared to a profit of $31 million in the prior year period. Net sales declined 4% to $3.36 billion, primarily due to weakness in skin care segment and challenging retail environment in China. The company recorded $106 million in restructuring charges and a $159 million charge for talcum litigation settlements.The company's performance was significantly impacted by continued softness in Asia travel retail and mainland China, where worsened consumer sentiment led to lower replenishment orders. Skin care sales dropped 7% to $1.53 billion, while makeup sales decreased 2% to $1.04 billion. Operating margin declined to -3.6% from 2.8% last year, reflecting lower sales and higher operating expenses.As part of its Profit Recovery and Growth Plan, Estee Lauder announced a two-year restructuring program targeting 1,800-3,000 position reductions globally. The program is expected to yield annual benefits of $350-500 million before taxes. The company maintained its quarterly dividend at $0.66 per share while suspending share repurchases to preserve financial flexibility amid market uncertainties.

Estee Lauder reported a net loss of $156 million for Q1 FY2024, compared to a profit of $31 million in the prior year period. Net sales declined 4% to $3.36 billion, primarily due to weakness in skin care segment and challenging retail environment in China. The company recorded $106 million in restructuring charges and a $159 million charge for talcum litigation settlements.The company's performance was significantly impacted by continued softness in Asia travel retail and mainland China, where worsened consumer sentiment led to lower replenishment orders. Skin care sales dropped 7% to $1.53 billion, while makeup sales decreased 2% to $1.04 billion. Operating margin declined to -3.6% from 2.8% last year, reflecting lower sales and higher operating expenses.As part of its Profit Recovery and Growth Plan, Estee Lauder announced a two-year restructuring program targeting 1,800-3,000 position reductions globally. The program is expected to yield annual benefits of $350-500 million before taxes. The company maintained its quarterly dividend at $0.66 per share while suspending share repurchases to preserve financial flexibility amid market uncertainties.