Estée Lauder Launches Restructuring Plan, Expected Costs of $1.748 Billion
The company states: "As announced on November 1, 2023, The Estee Lauder Companies launched the Profit Recovery and Growth Plan to help progressively rebuild its profit margins in fiscal years 2025 and 2026. As a component of the PRGP, on February 5, 2024, the Company announced a two-year restructuring program and filed a Current Report on Form 8-K. The Company committed to this course of action on February 1, 2024. The Restructuring Program includes a number of initiatives, and the Company expected cumulative initiatives to be approved through June 30, 2026 and substantially completed by the end of fiscal 2027. Once the relevant accounting criteria have been met, the Company expects to record cumulative restructuring and other charges of approximately $1,748 million (before tax) in connection with initiatives approved since inception of the Restructuring Program through June 30, 2026, which other than the non-cash charges, are expected to result in future cash expenditures funded from cash provided by operations."
