Estee Lauder Revises Restructuring Costs Up 12.7%
But the beauty products maker estimates it’ll save more money than originally forecast.
August 24, 2022
The Estée Lauder Companies Inc (EL), a beauty product manufacturer, now expects the benefits of its restructuring plan to be much more lucrative than previousl thought. In August 2020, the company announced its Post-COVID Business Acceleration (PCBA) Program, designed to realign the business following shifts in consumer behavior due to the pandemic.
Estee Lauder expected restructuring charges over two years of $400-$500 million which would ultimately reduce annual SG&A expense by $300-$400 million. In its latest annual report, Estee Lauder revised its forecasts of both costs and benefits.
The company now expects restructuring charges of $500-$515 million, or 12.7% higher than the midpoint of the original estimate. With program costs becoming clearer halfway through the initiative, Estee Lauder also hiked its estimate of annual savings to $390-$410 million, or 14.2% higher than the midpoint of the original estimate.
Related: ELF, SBH, ULTA, COTY, LRLCY
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