Fabrizio Freda on cost restructuring
From Estee Lauder Companies Inc ($EL) Q2 2026 Earnings Call · · Castify Earnings Call
“We are going to have all the added benefit of the PRGP that continues to flow through like you know the P&L this year and in fiscal 27 because while the PRGP ends at the end of this fiscal year the execution of it will continue into fiscal 27 fiscal 27 and we will basically get some benefits.”
On , Fabrizio Freda, President, Chief Executive Officer & Director at Estee Lauder Companies Inc, spoke about cost restructuring during Estee Lauder Companies Inc ($EL) Q2 2026 Earnings Call on Castify Earnings Call.
About Fabrizio Freda
Fabrizio Freda, president and CEO of Estée Lauder Companies, discussed the company’s fiscal 2026 first-quarter results on an October 31, 2025 earnings call, reporting organic sales growth of 3% and a sequential acceleration from a 13% decline in the prior quarter. He stated that the company had returned to appropriate inventory levels in travel retail and noted that retail sales in China increased double digits, outperforming the prestige beauty market. Freda also announced a new partnership with Shopify to modernize the company’s direct-to-consumer business and reaffirmed the full-year outlook. On a January 30, 2026 earnings call covering the second quarter, Freda reported 4% organic sales growth, operating margin expansion, and 43% EPS growth. He said the company was raising its fiscal 2026 outlook, narrowing organic sales growth toward the high end of the range and increasing operating margin expansion expectations. Freda attributed the momentum to the “beauty reimagine” restructuring initiative, describing a simplified organizational structure with fewer layers. He noted that in mainland China, the company again outperformed prestige beauty with double-digit growth and gained share for the quarter and calendar year 2025, led by La Mer and Tom Ford.