Estée Lauder Companies 8-K Report, Regulation FD Disclosure (Oct 2, 2025)

The Estée Lauder Companies Inc. reorganized its geographic regions effective July 1, 2025, and will report fiscal 2026 and comparative fiscal 2025 results under the new structure beginning with its fiscal 2026 first quarter.

The four regions are The Americas; Europe, the United Kingdom and Ireland and Emerging Markets (EUKEM); Asia/Pacific; and Mainland China, which is now reported separately. The company also changed its regional allocation methodology: it excludes intercompany royalty activities globally, allocates corporate expenses (including global support functions, previously reported in The Americas) to all regions, and allocates manufacturing facility impacts to all regions rather than only the region where each facility is located. Management states these changes reflect that these activities benefit the company globally.

The company states that the reorganization does not affect its operating segments, which remain product categories, and that the changes affect only how results by geographic region are reported, with no impact on previously reported consolidated results. Exhibit 99.1 recasts geographic net sales and operating income for fiscal 2025 and 2024, including each quarterly and year-to-date period. Under the recast figures, fiscal 2025 total net sales were $14.33 billion^a (up from $15.61 billion in fiscal 2024 on a subtotal basis), with reported operating loss of $785 million compared with operating income of $970 million in fiscal 2024, and adjusted operating income (non-GAAP) of $1.15 billion versus $1.59 billion.

For investors, the filing is primarily a change in reporting presentation rather than a change in reported consolidated results. Regional comparisons in future filings should be read against the recast historical figures, not prior-year figures as originally reported, because the allocation changes shift corporate and manufacturing costs among regions.