The Estée Lauder Companies (EL) reported a challenging QQ2 2025 with a material year-over-year revenue decline driven by muted demand in Asia Pacific and weakness in travel retail, offset by stronger online performance and selective brand momentum (notably The Ordinary). Organic net sales fell 6% YoY, and net income and EPS remained negative as the company faced volume deleverage, mix shifts, and elevated operating costs related to an expanded restructuring program and ongoing investments in growth initiatives. Management articulated a multi-year transformation—Beauty Reimagined (five action priorities) and an expanded Profit Recovery and Growth Plan (PRGP)—to accelerate top-line growth, improve operating margins, and restore sustainable profitability. The company signaled a commitment to leaner, faster operations, greater consumer-facing investment, and selective outsourcing to improve efficiency, with explicit guidance for the third quarter and a longer-term path to double-digit adjusted operating margin by the end of the horizon. The near-term outlook remains soft for travel retail (expected strong double-digit sales decline in H2), while the rest of the business is anticipated to stabilize with in-market investments and improved inventory management underscoring the path to improved margins over time.