Overview
- The company reported results on May 27 that beat Wall Street on adjusted EPS of $0.32 and revenue near $1.38–$1.4 billion while net sales fell about 3% year over year.
- Reported net income rose to $183 million but that figure was materially affected by an $88 million pretax litigation settlement gain and a $62 million tax benefit, with roughly $8 million in transformation costs noted.
- Management described the quarter as early proof that its multi‑year Consumer First transformation is working, and said the Amazon storefront launched earlier this year is drawing younger, more affluent shoppers.
- Body care was the weakest category, declining in the mid‑teens after assortment changes, though executives said restocking top fragrances has already begun to improve trends.
- CFO Eva Boratto will step down effective June 12 with Tom Javitch named interim, the company reaffirmed full‑year guidance for modest sales declines and adjusted EPS of $2.40–$2.65, and the stock jumped sharply after the release.