EL · 10-K · 2026A · Full report

Travel Retail Demand Trends

ESTEE LAUDER COMPANIES INC · 2026-08-19 · Importance 25 · Surprise 24

Fiscal 2025 net sales fell by approximately $1.15 billion across travel retail, Mainland China, North America and Korea combined, with travel retail the primary driver. Asia travel retail was affected by subdued sentiment and lower conversion from Chinese consumers, a difficult comparison after replenishment orders resumed in the second half of fiscal 2024, and the Company’s decision to reduce exposure to reseller activity. Retailers’ shifts toward more profitable duty-free models in Korea and Mainland China also reduced replenishment orders.

Key facts

• Fiscal 2025 net sales decreased primarily due to lower travel retail sales and, to a lesser extent, lower sales in Mainland China, North America, and Korea, combined, of approximately $1,150 million. source
• Fiscal 2025 travel retail sales decreased primarily due to Asia travel retail, reflecting subdued sentiment, lower conversion from Chinese consumers, a difficult comparison after replenishment orders resumed in the second half of fiscal 2024, and the company's decision to reduce reseller exposure. source
• Retailer shifts toward more profitable duty-free business models in Korea and mainland China led to lower travel retail replenishment orders in fiscal 2025. source
• Changes in global or local conditions could affect consumers' willingness or ability to travel and/or purchase ESTEE LAUDER COMPANIES INC products while traveling. source