The Estee Lauder Companies (EL) delivered a Q3 FY2025 result characterized by a material YoY decline in organic net sales amid persistent travel retail weakness, yet with continued gross margin expansion and a disciplined approach to cost management under its Beauty Reimagined (BR) and PRGP initiatives. Revenue for the quarter was $3.55 billion, down 9.9% year over year, with travel retail organic declines of 28% driving most of the pressure. Excluding travel retail, organic sales declined 3% sequentially improving from Q2, underscoring a gradual stabilization in underlying demand in core markets. Gross margin expanded by more than 300 basis points to roughly 75% (about 0.75), marking the fourth consecutive quarter of margin expansion and reflecting PRGP benefits, pricing actions, and efficiency gains. Operating margin stood at 11.4% (versus 14.1% a year ago), as higher consumer-facing investments and volume deleverage from travel retail more than offset PRGP-driven gross margin gains. Net income was $159 million with basic EPS of $0.44 for the quarter. Management reiterated BR priorities and detailed a plan to return to positive growth in fiscal 2026, supported by share gains in the U.S., China, and Japan, ongoing digital-channel expansion (Amazon Premium Beauty, TikTok Shop), and the continued rollout of new products across a broader price tier spectrum. The company also highlighted a substantial restructuring effort under PRGP, with over 2,600 net positions being eliminated and a flatter organizational design intended to improve accountability and speed. Full-year guidance for FY2025 maintains a still-challenging backdrop with an expected organic net sales decline of 8-9%, gross margin around 73.5%, an effective tax rate near 38%, and EPS in the $1.30-$1.55 band (FX impacts modestly dilutive). The near-term trajectory hinges on travel retail recovery, stabilization of consumer demand in key regions (notably the U.S., Europe, and China), tariff developments, and the effectiveness of BR investments in restoring sustainable growth and margin expansion by FY2026.