Estée Lauder Companies 8-K/A Report, Exit or Disposal Costs (Jun 3, 2026)

The Estée Lauder Companies Inc. filed this Form 8-K/A under Item 2.05 (Costs Associated with Exit or Disposal Activities) to disclose additional initiatives approved under its Restructuring Program, which is part of the Profit Recovery and Growth Plan (PRGP).

The Company now expects the Restructuring Program to result in restructuring and other charges between $1,500 million^a and $1,700 million (before tax). Cumulative charges approved through May 28, 2026 total $1,551 million (before tax), of which $1,147 million are restructuring charges and $374 million are other charges. Of the $134 million approved between April 30, 2026 and May 28, 2026, $129 million are restructuring charges, primarily for employee-related costs.

The newly approved initiatives span four areas: Value Chain Optimization, Enabling Function Re-Invention, Go-to-Market Operating Model Acceleration, and Digital Organization Transformation. Most actions are expected to result in employee severance from net workforce reductions, along with some asset-related costs. Of the cumulative restructuring charges approved through May 28, 2026, employee-related costs total $970 million^b, asset-related costs $109 million, contract terminations $27 million, and other exit costs $41 million.

The Company expects these charges, apart from non-cash items, to be funded from cash provided by operations. The Company states it is unable yet to estimate by major cost type and future cash expenditures for initiatives approved after April 29, 2026, and it will file further disclosures for significant initiatives once those estimates can be made. The Restructuring Program's cumulative initiatives are expected to be approved by the end of fiscal 2026 and substantially completed by the end of fiscal 2027.