Overview
- Fiscal Q2 delivered an EPS beat at $0.89 on revenue of $4.23 billion, up 6% year over year, with adjusted operating margin expanding 290 basis points to 14.4%.
- Full-year adjusted EPS guidance rose to $2.05–$2.25, with management projecting 1%–3% organic sales growth for fiscal 2026.
- Management outlined roughly $100 million of tariff headwinds concentrated in the second half across several manufacturing and distribution markets, and the stock fell about 18%–19%.
- Mainland China posted its second straight quarter of double-digit retail growth (about 13%) and Hainan strengthened, while duty-free operator transitions in Beijing and Shanghai are creating a temporary travel-retail drag.
- The multi-year Beauty Reimagined and Profit Recovery and Growth Plan targets $0.8–$1.0 billion in annual savings with $1.2–$1.6 billion in charges and 5,800–7,000 expected job reductions, supporting increased consumer-facing investment and supply-chain adjustments.