Feb 4 (Reuters) - Estee Lauder ( EL ) on Tuesday
expanded its restructuring plan that would include up to 7,000
job cuts and posted smaller-than-expected drop in second-quarter
sales.
Shares of the company, which fell about 49% last year, were
marginally down in premarket trading.
The company said that the expanded plan is to help Estee
Lauder ( EL ) return to sales growth and restore a solid double-digit
adjusted operating margin over the next few years along with the
aim to "manage external volatility, such as potential tariff
increases globally."
As part of its turnaround efforts to drive profit
recovery, the company has been implementing restructuring
programs, which include a series of changes in the executive
team after Stéphane de La Faverie took on the role of Chief
Executive Officer in January.
Estee Lauder ( EL ) expects to take restructuring and other
charges of between $1.2 billion and $1.6 billion, before taxes,
consisting of employee-related costs, contract terminations,
asset write-offs, and other costs associated with implementing
these initiatives.
The company's sales fell 6% to $4 billion in the quarter,
compared with analysts' estimates of 7.3% drop to $3.97 billion,
as per data compiled by LSEG.