EL · The Estée Lauder Companies Inc.

The Estée Lauder Companies filed an amendment to its previous 8-K detailing the expansion of its restructuring program under the Profit Recovery and Growth Plan (PRGP). Initially launched in November 2023, the restructuring was expanded in February 2025. As of May 28, 2026, cumulative approved charges total $1,551 million, within the updated expected range of $1.5 billion to $1.7 billion (before tax). The new initiatives approved between April 30 and May 28, 2026 focus on four areas: Value Chain Optimization, Enabling Function Re-Invention, Go-to-Market Operating Model Acceleration, and Digital Organization Transformation. These initiatives are expected to primarily result in employee severance and asset-related costs, reflecting a net reduction in workforce and facility optimization. The restructuring program is part of the company's strategy to rebuild operating margins and reinvest in high-growth areas. Substantial completion is anticipated by fiscal 2027. The company expects future cash expenditures from these initiatives to be funded by operating cash flows. This update provides investors with clearer visibility into the ongoing cost transformation efforts and the magnitude of charges, which are significant relative to the company's expense base.