May 1 (Reuters) - Estee Lauder on Friday raised its annual profit forecast and laid out plans to cut up to 3,000 more jobs globally as it accelerates a broad restructuring plan, sending its shares up about 11% in premarket trading.
The Clinique and M.A.C owner, which is in talks to merge with Jean Paul Gaultier-owner Puig, said it now expects a total reduction of 9,000 to 10,000 positions, up from a prior estimate of as many as 7,000, and aims to save as much as $1.2 billion in costs.
More than 70%
of the additional cuts will come from reducing department store staff roles, the company said as it shifts toward faster-growing digital and specialty retail channels.
The company had about 57,000 employees worldwide as of June 30, 2025, according to its latest annual filing.
RESTRUCTURING TAKES HOLD
Estee's focus on boosting premium launches, streamlining the supply chain and ramping up innovation and marketing to strengthen growth under CEO Stephane de La Faverie's turnaround push helped it revive sales in key luxury markets, including China and Europe, during the reported quarter.
The company expects full-year adjusted earnings per share in the range of $2.35 to $2.45, compared with a prior forecast of $2.05 to $2.25.
It expects organic net sales growth at the high end of its prior range of 1% to 3%.
The company, however, said that its current forecast was based on the assumption that there was no deterioration in the geopolitical landscape or related impacts, including tariffs and consumer sentiment, as well as business disruptions in the Middle East beyond May 2026.
Estee posted quarterly sales of $3.71 billion, compared with analysts' estimates of $3.69 billion, according to data compiled by LSEG.
Its adjusted profit of 88 cents per share beat analysts' estimates of 65 cents per share.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Anil D'Silva)
