Estée Lauder reported fiscal 2025 revenue of $14.3 billion, down 8% year over year, and initiated a strategic portfolio review with outside advisors. The company reorganized from seven regions into four, gave full P&L control to geographic teams, and shifted away from a global brand-led model to increase accountability and execution speed. E-commerce reached a record 31% of revenue, driven by expanded presence on Amazon, TikTok Shop and regional marketplaces. The Ordinary led retail growth and launched an AI-powered flagship on Tmall. AI is being applied to back-end operations alongside consumer-facing tools.
'Beauty Reimagined,' the transformation plan launched in May 2024 under CEO Stéphane de La Faverie, is beginning to show early momentum. 'We are energized as we transform our company,' he said on the earnings call. 'Together with all of our employees, I am excited for what we will accomplish.' The reset is Estée Lauder's most significant organizational shift in years.
One of the biggest bright spots is e-commerce. Online sales hit a record 31% of total revenue during the year, up three points from last year. Growth came from expanded reach across Amazon and TikTok Shop. The company now has 11 brands on Amazon's U.S. Premium Beauty store, up from just three in its fiscal 2024. The company also launched brands on Amazon in Canada and Mexico, and on Shopee and TikTok in Southeast Asia.
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