(Reuters) – American beauty products group Estée Lauder lowered its annual profit forecasts on Monday and announced a restructuring program aimed at cutting 3% to 5% of its workforce in order to reduce costs.
On the New York Stock Exchange, the stock increased by 11% in pre-market trading.
The group, which will begin its reorganization in the third quarter of 2024, expects restructuring and other charges to be between $500 million and $700 million, before taxes.
Estée Lauder had approximately 62,000 employees worldwide as of June 2023, including 71% full-time, 16% temporary and 13% part-time.
In an effort to cut costs and rebuild margins, Estée Lauder has unveiled a plan for fiscal years 2025 and 2026. The group now expects to generate an additional operating profit of 1.1 billion to 1.4 billion dollars thanks to the recovery plan.
The company expects full-year 2024 adjusted earnings per share of between $2.08 and $2.23, compared to a prior forecast of $2.17 and $2.42.
Estée Lauder’s net sales also fell 7% in the second quarter, reaching $4.28 billion (€3.98 billion), while analysts were expecting $4.19 billion. dollars, according to LSEG data.
(Reporting Ananya Mariam Rajesh in Bangalore; Diana Mandiá)
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