Estée Lauder Companies Inc. reported its fiscal 2025 third quarter earnings, surpassing expectations with adjusted earnings per share (EPS) of $0.65, beating the estimate of $0.31, and revenue of $3.55 billion, exceeding the forecast of $3.52 billion. Despite these results, the company experienced a 10% year-over-year revenue decline. The gross margin improved to 75.0% from 71.9% year-over-year. The company revised its full-year guidance downwards, now expecting adjusted EPS to be between $1.33 and $1.58, compared to the previous range of $2.78 to $2.98. It also anticipates a net sales decline of 8% to 9%, a significant adjustment from the earlier forecast of -1% to +2%. Estée Lauder announced plans to lay off between 5,800 and 7,000 employees, a move that comes as the company faces challenges from a slowdown in the U.S. market and a sputtering recovery in China. The CEO expressed confidence in returning to sales growth in fiscal 2025, contingent on a resolution of recently enacted tariffs. The company's organic net sales fell 9% year-over-year, though excluding travel retail, the decline was less severe at 3%, showing sequential improvement from a 4% drop in the second quarter. Estée Lauder achieved share gains in the U.S., China, and Japan. The company's stock rose by 0.7% pre-market and 5% post-market following the announcement.