In the third quarter of the fiscal year, the New York cosmetics giant Estee Lauder recorded a significant decline in its net profit, amounting to 159 million US dollars, or 44 cents per share. In the previous year, it was still 335 million US dollars, or 91 cents per share. This reflects the ongoing weakness in the once booming Asian market, which is increasingly posing a challenge for Estee Lauder.

Sales fell by 10% compared to the previous year to $3.55 billion, but slightly exceeded analysts' expectations, which had predicted $3.52 billion. The skincare segment, the largest sales segment, suffered a decline of 12% to $1.81 billion. The Estee Lauder brand and the luxury brand La Mer were still unable to strengthen their position in Asia, leading to a decline in sales. Losses of 12% were also recorded in the hair care products sector.

For the fiscal year ending in June, Estee Lauder expects a further decline in sales of 8% to 9%. To increase profitability, a comprehensive restructuring has already been announced. The company plans to cut between 5,800 and 7,000 jobs and record charges of between $1.2 billion to $1.6 billion. These measures are expected to be largely completed by the end of the 2027 fiscal year. By the end of April, $623 million in restructuring costs had already been approved, and more than 2,600 positions had been cut.

Despite the difficult market situation and massive cuts in personnel, Estee Lauder seems determined to set the strategic course for the future. The planned measures are to be implemented in the coming years to get the company back on track in the long term.