Estee Lauder (EL) shares tumbled 5.07% in pre-market trading on Thursday following the release of its fiscal 2025 third-quarter results and the announcement of a major restructuring program. The cosmetics giant reported mixed financial results while unveiling plans for significant organizational changes that spooked investors.

The company's third-quarter adjusted earnings per share came in at $0.65, substantially beating the IBES estimate of $0.32. Net sales for the quarter reached $3,600 million, also surpassing analyst expectations of $3,518 million. However, despite the earnings beat, Estee Lauder announced a restructuring program that is expected to result in charges between $1.2 billion and $1.6 billion before taxes, raising concerns about the company's near-term profitability.

Adding to investor worries, Estee Lauder disclosed the departure of Carl Haney, Executive Vice President of Global Innovation and Research & Development. This leadership change, coupled with the restructuring announcement, suggests significant shifts within the company. While Estee Lauder expressed confidence in its ability to return to sales growth in fiscal 2026, the market's immediate reaction indicates skepticism about the company's short-term outlook and the potential costs associated with its reorganization efforts.