Estee Lauder reported a challenging Q4 2024, with organic net sales up 8% for the quarter driven by strength in Europe, Japan, and select Asia travel retail markets, but tempered by ongoing softness in Mainland China and North America. Full-year 2024 organic net sales declined 2%, while gross margin expanded modestly to 71.7% and the company delivered an operating margin of 10.2% on a full-year basis. The quarter featured a material one-off impairment related to Dr.Jart+ ($471 million), which weighed on reported net income, but did not alter the company’s long-term strategic trajectory. Management introduced a refreshed strategy reset, the Profit Recovery and Growth Plan (PRGP), designed to accelerate margin expansion, rebalance growth across regions, and invest selectively in consumer-facing initiatives. Looking ahead to fiscal 2025, EL guides a modest organic sales trajectory of -1% to +2% and an EPS range of $2.75 to $2.95 before restructuring, with currency effects expected to be a modest headwind. The plan contemplates a substantial gross-margin uplift (roughly 80% of PRGP benefits expected to accrue to gross margin in 2025) and incremental operating-profit contribution of $1.1–$1.4 billion over the full PRGP, albeit with fixed-cost deleverage and the potential for ongoing restructuring charges. In sum, EL is transitioning to a growth-and-margin resilience model, leveraging its premier skincare and luxury fragrance franchises, expanding faster-growing channels (notably online/social commerce and Amazon Premium Beauty), and optimizing cost structure to weather near-term volatility while positioning for mid-to-long-term outperformance relative to the prestige beauty market.