\n| \n ($ in millions, except per share data)<\/i><\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n 2024<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet Sales<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n4,229<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n4,004<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOrganic Net Sales, Non-GAAP1,2<\/sup><\/p>\n<\/td>\n| \n \n$<\/p>\n<\/td>\n | \n \n4,155<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n4,004<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther Financial Results:<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \nGross Profit<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n3,235<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n3,047<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Gross Margin<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 76.5<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 76.1<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nAdjusted Gross Profit, Non-GAAP1,3<\/sup><\/p>\n<\/td>\n| \n \n$<\/p>\n<\/td>\n | \n \n3,235<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n3,047<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted Gross Margin, Non-GAAP<\/i>1,3<\/sup><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 76.5<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 76.1<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nOperating Income (Loss)<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n401<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n(580<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n100<\/p>\n<\/td>\n | \n \n+%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Operating Margin<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 9.5<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (14.5<\/i><\/p>\n<\/td>\n | \n )%<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nAdjusted Operating Income, Non-GAAP1,3<\/sup><\/p>\n<\/td>\n| \n \n$<\/p>\n<\/td>\n | \n \n608<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n462<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n32<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted Operating Margin, Non-GAAP<\/i>1,3<\/sup><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 14.4<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 11.5<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nDiluted Net Earnings (Loss) Per Common Share<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n.44<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n(1.64<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n100<\/p>\n<\/td>\n | \n \n+%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted Diluted Net Earnings Per Common Share, Non-GAAP1,3<\/sup><\/p>\n<\/td>\n| \n \n$<\/p>\n<\/td>\n | \n \n.89<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n.62<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n43<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n | \n\u00a0<\/td>\n<\/tr>\n | \n1<\/sup>See pages 18 and 19 for reconciliation between GAAP and Adjusted Non-GAAP measures.<\/i><\/td>\n<\/tr>\n\n2<\/sup>Organic net sales represents net sales excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures; as well as the impact from foreign currency translation. The Company believes that the Non-GAAP measure of organic net sales growth provides year-over-year sales comparisons on a consistent basis.<\/i><\/td>\n<\/tr>\n\n3<\/sup>Adjusted Non-GAAP measures are calculated based on Net Sales adjusted only for Returns associated with restructuring and other activities.<\/i><\/td>\n<\/tr>\n<\/table>\n\n- \nAs Reported Net sales<\/b> increased 6% to $4.2 billion. Organic net sales<\/b> increased 4%.<\/p>\n<\/li>\n
- \nAs Reported and Adjusted Gross margin <\/b>expanded 40 basis points, to 76.5% from 76.1%, reflecting net benefits from the Company\u2019s Profit Recovery and Growth Plan (\u201cPRGP\u201d), largely offset by the impact of incremental tariffs, changes in the Company\u2019s mix of business and inflation. The PRGP benefits were driven by operational efficiencies, including a more competitive approach to procurement and expense optimization, as well as lower excess and obsolescence.<\/p>\n<\/li>\n
- \nAs Reported Operating margin<\/b> was 9.5%, an improvement from (14.5)% in the prior-year period, which was unfavorably impacted by $861 million of goodwill and other intangible asset impairments. Adjusted Operating margin<\/b> expanded 290 basis points, to 14.4% from 11.5%, reflecting net benefits from the Company\u2019s PRGP. These net benefits helped to reduce non-consumer-facing expenses, despite the normalization of employee incentive costs, and provided funding for increased consumer-facing investments4<\/sup>.<\/p>\n<\/li>\n
- Effective tax rate<\/b> was 51.4%, compared with 9.2% in the prior-year period. The increase was primarily driven by the fiscal 2025 second quarter pre-tax loss and the discrete tax impact of goodwill and other intangible asset impairments. It also reflects the estimated unfavorable impact of recently enacted U.S. tax legislation and a higher effective tax rate on foreign operations due to the establishment of new valuation allowances on certain foreign deferred tax assets. The favorable year-over-year impact associated with previously issued stock-based compensation partially offset these increases. Adjusted effective tax rate<\/b> was 39.8%, compared with 42.6%.\n<\/li>\n
- Diluted net earnings (loss) per common share<\/b> increased to net earnings of $.44, compared with a net loss of $(1.64) in the prior-year period. Adjusted diluted net earnings per common share<\/b> increased to $.89, or 43%, compared with $.62.\n<\/li>\n
- \nFor the six months ended December 31, 2025:<\/p>\n
\n- Net cash flows provided by operating activities<\/b> increased to $785 million, an improvement compared to $387 million in the prior-year period, primarily reflecting higher earnings, excluding non-cash items.\n<\/li>\n
- Capital expenditures<\/b> decreased to $204 million from $273 million in the prior-year period, reflecting the Company\u2019s strategic focus on prioritizing consumer-facing investments to fuel growth while optimizing its overall investments.\n<\/li>\n
- Free Cash Flow<\/b>5<\/sup> was $581 million, compared with $114 million in the prior-year period, reflecting strong cash flows from operations as well as the timing of capital expenditures. The Company continues to focus on improving Free Cash Flow<\/b> through operational efficiencies and the optimization of its investments.\n<\/li>\n
- \nThe Company paid $150 million in deferred consideration associated with the fiscal 2023 acquisition of the TOM FORD brand and $255 million in Dividends<\/b>.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n\n | \n\u00a0<\/td>\n<\/tr>\n | \n4<\/sup>Consumer-facing investments includes co-operative advertising, selling, advertising and promotional expenses, as well as store operating costs.<\/i><\/td>\n<\/tr>\n\n| 5<\/sup>Free Cash Flow is defined as net cash flows from operating activities less capital expenditures. See page 21 for the reconciliation between GAAP and Adjusted Non-GAAP measures.<\/i><\/td>\n<\/tr>\n<\/table>\n BEAUTY GAINS AND OPERATIONAL HIGHLIGHTS<\/span>6<\/sup><\/b><\/p>\n\n- \nAchieved prestige beauty share gains for the fiscal 2026 second quarter in some key markets:<\/p>\n
\n- \nMainland China: Second consecutive quarter of double-digit retail sales growth and continued share gains, driven by every category, led by La Mer, TOM FORD, and Le Labo. For calendar year 2025, the Company gained share in every category and across brick-and-mortar and online.<\/p>\n<\/li>\n
- \nJapan: Share gains overall driven by Makeup, led by M\u00b7A\u00b7C and Bobbi Brown Cosmetics, and Fragrance, led by Le Labo, KILIAN PARIS, and Editions de Parfums Fr\u00e9d\u00e9ric Malle. For calendar year 2025, the Company gained share in Fragrance to further solidify its #1 rank in the category.<\/p>\n<\/li>\n
- \nU.S.7<\/sup>: Volume share gains in total prestige beauty, as the Company also gained value share in Skin Care and Hair Care. For calendar year 2025, the Company gained volume share in total prestige beauty, while Clinique and The Ordinary drove the Company\u2019s value share gains in Skin Care, ranking #1 and #2 brands in the category, respectively, and Est\u00e9e Lauder and Le Labo gained value share in Makeup and Fragrance, respectively. In direct-to-consumer, Fragrance rose mid-single-digits.<\/p>\n<\/li>\n
- \nWestern Europe: Share gains in Fragrance in each of France, Spain and the U.K.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n\n | \n\u00a0<\/td>\n<\/tr>\n | \n6<\/sup>Since the Company\u2019s last earnings announcement, including some previously disclosed.<\/i><\/td>\n<\/tr>\n\n7<\/sup>Source, excluding direct-to-consumer data: Circana, LLC, US Prestige Beauty Total Department\/Specialty, Dollar Share Growth of Corporation, three-months ended December 31, 2025.<\/i><\/td>\n<\/tr>\n<\/table>\n\n- \nLaunched breakthrough, on-trend and commercial innovations:<\/p>\n
\n- \nLimited edition holiday products, collections, and campaigns across brands, including, but not limited to: \u201cGift M\u00b7A\u00b7C\u201d, La Mer\u2019s \u201cA Sparkling Season\u201d, Jo Malone London\u2019s \u201cFun & Games\u201d, and The Ordinary\u2019s \u201cSlowvember\u201d<\/p>\n<\/li>\n
- \nEst\u00e9e Lauder further extended its longevity portfolio, powered by patented visible age-reversal technology, with Re-Nutriv Ultimate Lift Rejuvenating Oil, developed in the Company\u2019s China Innovation Labs, and launched in Mainland China in December 2025<\/p>\n<\/li>\n
- \nLa Mer debuted The New Lip Treatment, innovated to improve lip texture and replenish lips\u2019 moisture barrier, offered in a variety of bare and buildable shades, launched in November 2025<\/p>\n<\/li>\n
- \nThe Ordinary expanded its offerings targeting visible signs of aging, at accessible pricing, with Volufiline 92% + Pal-Isoleucine 1% Targeted Plumping Serum in November 2025<\/p>\n<\/li>\n
- \nTOM FORD introduced a solid-to-liquid lip formula in November 2025, and launched its winter Soleil Neige collection in December 2025, which included Soleil Neige Eau de Parfum, and a corresponding makeup collection of eyeshadow, illuminator, lip color, and blush<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nRanked highly during the 11.11 Global Shopping Festival: Est\u00e9e Lauder #1 in Prestige Beauty on Tmall and store livestreams on Douyin; La Mer #1 in Luxury on Tmall; Jo Malone London #1 in Prestige Fragrance on Tmall<\/p>\n<\/li>\n
- \nExpanded consumer coverage:<\/p>\n
\n- \nContinued expansion on:<\/p>\n
\n- \nAmazon from October 2025 through January 2026, bringing the total portfolio to 12 brands across 10 markets<\/p>\n<\/li>\n
- \nTikTok Shop from October 2025 through January 2026, bringing the total portfolio to 12 brands across seven markets<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nAmplified specialty-multi distribution, announcing in October 2025 M\u00b7A\u00b7C\u2019s planned March 2026 launch in select U.S. Sephora locations as well as online and in Sephora at Kohl\u2019s<\/p>\n<\/li>\n
- \nBroadened Fragrance distribution, including nine net new freestanding stores opened globally in the fiscal 2026 second quarter, led by Jo Malone London and Le Labo<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nReimagined the way the Company works, strategically leveraging leading external organizations to advance its organizational transformation:<\/p>\n
\n- \nAnnounced its strategic partnership with Shopify Inc. in October 2025 to modernize its digital technology infrastructure and deliver best-in-class omnichannel consumer experiences, with the Company\u2019s first store\u2014a TOM FORD freestanding store\u2014going live in the United Kingdom in January 2026<\/p>\n<\/li>\n
- \nEntered into a global strategic agreement with Accenture in November 2025 for Enterprise Business Services (\u201cEBS\u201d) in connection with the transformation of its global operating model. See the Profit Recovery and Growth Plan (\u201cPRGP\u201d)<\/b> section on page 8 for further details.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nOther highlights:<\/p>\n
\n- \nAnnounced in November 2025 its first investment in a Latin American brand with a minority interest in the Mexican luxury fragrance brand XIN\u00da, reinforcing the Company\u2019s focus on fostering local entrepreneurship and innovation<\/p>\n<\/li>\n
- \nLaunched in December 2025 the Jo Malone London AI Scent Advisor, an AI-powered digital experience using Google\u2019s Gemini and Google Cloud\u2019s Vertex AI to provide personalized fragrance recommendations through conversational, natural-language interactions<\/p>\n<\/li>\n
- \n
\nAnnounced in February 2026 a pioneering collaboration in the U.S. between Clinique and ACUVUE, a globally trusted contact lens brand, uniting two global leaders around a mission to advance eye education in beauty and vision by highlighting to consumers that they can wear contacts and eye makeup confidently<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n FISCAL 2026 SECOND QUARTER RESULTS BY PRODUCT CATEGORY AND BY REGION<\/span><\/b><\/p>\n\n\n| \n Results by Product Category<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (Unaudited)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \n\u00a0<\/p>\n<\/td>\n | \n Three Months Ended December 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n Net Sales<\/b><\/p>\n<\/td>\n | \n Percentage Change1<\/sup><\/b><\/p>\n<\/td>\n| \n Operating
\n
<\/b>Income (Loss)<\/b><\/p>\n<\/td>\n | \n Percentage
\n
<\/b>C<\/b>hange<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n ($ in millions)<\/i><\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n 2024<\/b><\/p>\n<\/td>\n | \n Reported
\n
<\/b>Basis<\/b><\/p>\n<\/td>\n | \n Impact of
\n
<\/b>F<\/b>oreign
\n
<\/b>C<\/b>urrency
\n
<\/b>T<\/b>ranslation<\/b><\/p>\n<\/td>\n | \n Organic
\n
<\/b>N<\/b>et Sales
\n
<\/b>(<\/b>Non-GAAP)<\/b><\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n 2024<\/b><\/p>\n<\/td>\n | \n Reported
\n
B<\/b>asis<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSkin Care<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n2,054<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n1,921<\/p>\n<\/td>\n | | \n\n \n7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n(1<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n454<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n306<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n48<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nMakeup<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,164<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,150<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(2<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(1<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n18<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(211<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n100<\/p>\n<\/td>\n | \n \n+<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nFragrance<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n812<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n744<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(3<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n105<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(446<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n100<\/p>\n<\/td>\n | \n \n+<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nHair Care<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n168<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n159<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(1<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n18<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(3<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n100<\/p>\n<\/td>\n | \n \n+<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n31<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n30<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n13<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(45<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n100<\/p>\n<\/td>\n | \n \n+<\/p>\n<\/td>\n<\/tr>\n | \n| \n Subtotal<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,229<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,004<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 6<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n (2<\/b><\/p>\n<\/td>\n | \n )%<\/b><\/p>\n<\/td>\n | \n 4<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 608<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n (399<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n | \n 100<\/b><\/p>\n<\/td>\n | \n +%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nReturns\/charges<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | <\/tr>\n \n| \n \nassociated with<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | <\/tr>\n \n| \n \nrestructuring and<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | <\/tr>\n \n| \n \nother activities<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(207<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(181<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n Total<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,229<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,004<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 6<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n (2<\/b><\/p>\n<\/td>\n | \n )%<\/b><\/p>\n<\/td>\n | \n 4<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 401<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n (580<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n | \n 100<\/b><\/p>\n<\/td>\n | \n +%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Non-GAAP Adjustments to As Reported Operating Income (Loss):<\/b><\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nReturns\/charges associated with restructuring and other activities<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n207<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n181<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nMakeup – Goodwill and other intangible asset impairments<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n258<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nFragrance – Other intangible asset impairments<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n549<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nOther – Other intangible asset impairments<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n54<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n Adjusted Operating Income – Non-GAAP<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 608<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 462<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 32<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n 1<\/sup>Percentages are calculated on an individual basis.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\nThe product category net sales commentary below reflects organic net sales, excluding the favorable impacts from foreign currency translation. In addition to the Operational Highlights above, below are the drivers of the Company\u2019s performance.<\/p>\n Skin Care<\/span><\/b><\/p>\n\n- \nSkin Care net sales increased 6%, primarily driven by growth from La Mer, Est\u00e9e Lauder and The Ordinary.<\/p>\n
\n- \nNet sales growth from La Mer was fueled by strong performance during key shopping moments and holiday\u2014supported by increased consumer-facing investments\u2014reflecting growth from The Treatment Lotion and Cr\u00e8me de la Mer product franchises as well as The Renewal Oil.<\/p>\n<\/li>\n
- \nNet sales from Est\u00e9e Lauder increased, similarly benefiting from performance during key shopping moments and holiday, as well as innovation across the Revitalizing Supreme+, Re-Nutriv and Advanced Night Repair product franchises.<\/p>\n<\/li>\n
- \nNet sales from The Ordinary increased, benefitting from targeted expanded consumer reach and existing distribution growth, as well as successful consumer activations, including those supporting the launch of Volufiline 92% + Pal-Isoleucine 1% Targeted Plumping Serum<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nSkin Care operating income increased, primarily due to the increase in net sales as well as net benefits from the PRGP\u2014 which helped to reduce non-consumer-facing expenses\u2014partially offset by increased consumer-facing investments to support key activations and new product launches.<\/p>\n<\/li>\n<\/ul>\n
Makeup<\/span><\/b><\/p>\n\n- \nMakeup net sales decreased 1%, primarily driven by Est\u00e9e Lauder, partially offset by M\u00b7A\u00b7C.<\/p>\n
\n- \nNet sales from Est\u00e9e Lauder declined, primarily due to an accrual for estimated returns of the existing Double Wear Stay-in-Place Long Wear Matte Foundation ahead of the launch of its next-generation of Double Wear matte innovation, which launched in February 2026.<\/p>\n<\/li>\n
- \nM\u00b7A\u00b7C net sales increased, primarily driven by initial shipments for the March 2026 launch in select U.S. Sephora locations as well as online and in Sephora at Kohl\u2019s. The growth also reflects continued success from the lip subcategory, fueled by its hero product Lip Pencil as well as Lipglass Air.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nMakeup operating results improved to income from a loss in the prior-year period, which included $258 million of goodwill and other intangible asset impairments relating to TOM FORD and Too Faced.<\/p>\n<\/li>\n<\/ul>\n
Fragrance<\/span><\/b><\/p>\n\n- \nFragrance net sales increased 6%, driven by high-single-digit growth from the Company\u2019s Luxury Brands\u2014which grew across all geographic regions\u2014led by TOM FORD, Le Labo and KILIAN PARIS.<\/p>\n
\n- \nNet sales from TOM FORD increased, fueled by innovation\u2014including Oud Voyager, Figue \u00c9rotique and Soleil Neige\u2014which created a halo effect that benefited existing Private Blend and Signature product sales. Net sales also benefited from targeted expanded consumer reach.<\/p>\n<\/li>\n
- \nNet sales growth from Le Labo was primarily driven by its Classic Collection, including growth from the juice subcategory, as well as body with the launch of perfuming hand creams. Targeted expanded consumer reach also contributed to growth.<\/p>\n<\/li>\n
- \nKILIAN PARIS net sales increased, primarily reflecting the success of existing products\u2014such as the Angels\u2019 Share Collection product franchise\u2014 as well as the launch of Angels\u2019 Share on the Rocks and targeted expanded consumer reach.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nFragrance operating results improved to income from a loss in the prior-year period, which included a $549 million other intangible asset impairment charge relating to TOM FORD. These results also reflect the increase in net sales, partially offset by increased consumer-facing investments to support key activations, distribution expansion and new product launches.<\/p>\n<\/li>\n<\/ul>\n
Hair Care<\/span><\/b><\/p>\n\n- \nHair Care net sales returned to growth, increasing 5%, primarily driven by distribution expansion and the success of Multi-Peptide Serum for Hair Density from The Ordinary, as well as initial shipments for Bumble and bumble\u2019s SalonCentric launch in February 2026.<\/p>\n<\/li>\n
- \nHair Care operating results improved to income from a loss in the prior-year period, primarily driven by the increase in net sales as well as net benefits from the PRGP, which helped to reduce non-consumer-facing expenses.<\/p>\n<\/li>\n<\/ul>\n
\n\n| \n Results by Geographic Region<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (Unaudited)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \n\u00a0<\/p>\n<\/td>\n | \n Three Months Ended December 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n Net Sales<\/b><\/p>\n<\/td>\n | \n Percentage Change1<\/sup><\/b><\/p>\n<\/td>\n| \n Operating
\n
Income (Loss)2<\/sup><\/b><\/p>\n<\/td>\n\n Percentage
\n
C<\/b>hange<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n ($ in millions)<\/i><\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n 2024<\/b><\/p>\n<\/td>\n | \n Reported
\n
B<\/b>asis<\/b><\/p>\n<\/td>\n | \n Impact of
\n
F<\/b>oreign
\n
C<\/b>urrency
\n
T<\/b>ranslation<\/b><\/p>\n<\/td>\n | \n Organic
\n
N<\/b>et Sales
\n
(Non-GAAP)<\/b><\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n 2024<\/b><\/p>\n<\/td>\n | \n Reported
\n
B<\/b>asis<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nThe Americas<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n1,218<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n1,209<\/p>\n<\/td>\n | | \n\n \n1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n104<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n(771<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n100<\/p>\n<\/td>\n | \n \n+%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEUKEM<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,183<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,085<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(7<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n156<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n145<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAsia\/Pacific<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n900<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n888<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n200<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n152<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n32<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nMainland China<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n928<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n822<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n13<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n13<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n148<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n75<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n97<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Subtotal<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,229<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,004<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 6<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n (2<\/b><\/p>\n<\/td>\n | \n )%<\/b><\/p>\n<\/td>\n | \n 4<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 608<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n (399<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n | \n 100<\/b><\/p>\n<\/td>\n | \n +%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nReturns\/charges<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | <\/tr>\n \n| \n \nassociated with<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | <\/tr>\n \n| \n \nrestructuring and other<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n | \n | <\/tr>\n \n| \n \nactivities<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(207<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(181<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n Total<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,229<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,004<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 6<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n (2<\/b><\/p>\n<\/td>\n | \n )%<\/b><\/p>\n<\/td>\n | \n 4<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 401<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n (580<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n | \n 100<\/b><\/p>\n<\/td>\n | \n +%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Non-GAAP Adjustments to As Reported Operating Income (Loss):<\/b><\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nReturns\/charges associated with restructuring and other activities<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n207<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n181<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nThe Americas – Goodwill and other intangible asset impairments<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n861<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| \n Adjusted Operating Income – Non-GAAP<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 608<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 462<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 32<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n 1<\/sup>Percentages are calculated on an individual basis.<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n 2<\/sup>As previously disclosed, operating results by geographic region for the fiscal 2025 second quarter (quarter-to-date period) have been adjusted to reflect the correction of a regional misclassification in the amounts furnished in the Form 8-K on October 2, 2025 related to a one-time charge during the fiscal 2025 first quarter. The misclassification was offset in the fiscal 2025 first quarter furnished amounts. No other periods were impacted and there is no impact on the consolidated financial results or results by product category.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\nThe geographic region net sales commentary below reflects organic net sales, excluding the (favorable)\/unfavorable impacts from foreign currency translation. In addition to the Operational Highlights above, below are the drivers of the Company\u2019s performance.<\/p>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |