The following is a summary of the Estée Lauder (EL) Q2 2024 Earnings Call Transcript:

Financial Performance:

Esteé Lauder reported an 8% decline in organic net sales for Q2, meeting company expectations.
Earnings per share was reported at $0.88.
Operating income decreased by 25% to $577 million, while the operating margin contracted from 16.6% to 13.5%.
The geographical changes led to an increase in the effective tax rate to 37.7%, resulting in a 43% decrease in diluted EPS.
Net cash flow from operating activities increased to $937 million from $751 million last year.

Business Progress:

The Asia-Pacific region indicated high growth for luxury fragrance brands and The Ordinary showed double-digit growth from specialty multi.
Despite significant declines in skincare (10%) and makeup (8%) due to challenges in Asia travel retail, mainland China, and MAC, the company plans to return to organic sales growth in the latter part of the fiscal year.
A two-year restructuring program has been initiated to improve gross margins and reduce expenses, including a 3%-5% global position reduction.
The restructuring program aims to generate an incremental operating profit between $1.1 billion and $1.4 billion.
Esteé Lauder has partnered with a global consulting firm, Alvarez & Marsal, for advisory services to assist in their profitability recovery plan.
The company aims to adapt quickly to consumer trends and continue to leverage their existing capabilities for future growth.