(Reuters) – Estée Lauder announced Tuesday that it would amplify its restructuring plan and remove more jobs than expected, between 5,800 and 7,000, while posting a drop in turnover in the second quarter less than foreseen.
Group sales dropped by 6% to 4 billion dollars (3.88 billion euros) during the quarter, while analysts were tabling on a drop of 7.3% to 3.97 billion dollars, According to data compiled by LSEG.
With this new plan, the American cosmetics giant intends to reconnect with sales growth and to restore a solid two -digit adjusted margin in the coming years.
The group also wants to “manage external volatility, such as the potential increases in customs tariffs on a global scale”.
As part of its recovery efforts, the company has implemented restructuring programs, including a series of changes within management after the appointment of Stéphane de La Faverie as President and CEO in January.
Estée Lauder plans to initiate restructuring costs and other charges between 1.2 and $ 1.6 billion, before taxes, which correspond to the costs related to employees, contract terminations, asset depreciation and asset depreciation other costs related to the implementation of these initiatives.
(Anuja Bharat Mistry report, Elena Smirnova, edited by Kate Entringer)
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