For the future, we are focused on a plan to further accelerate our growth in key markets, return to organic sales growth in our Asia travel retail business and skincare category, and to progressively rebuild margin across brands, categories, and regions.

May 3, 2023 / CEO / receipt, needs a key / Fabrice Alfreda, CEO | earnings call 2023-05-03 | transcript db4288f9-f619-4767-953b-72d3b3a5da47 | chars 6494-6748 | segment 6

As the shape of recovery for Asia travel retail comes into a better focus, it is proving to be both far more volatile than we expected and more gradual relative to what we experienced in other markets. We are therefore lowering our organic sales and EPS outlook for fiscal year 2023 as we reduce our implied four-quarter outlook, primarily for Asia travel retail.

May 3, 2023 / CEO / receipt, needs a key / Fabrice Alfreda, CEO | earnings call 2023-05-03 | transcript db4288f9-f619-4767-953b-72d3b3a5da47 | chars 4344-4707 | segment 4

For Asia travel retail, there are two factors driving our revised outlook. In Hainan, the pressure from elevated inventory in the trade is proving to be deeper and longer-lasting, driven by the slower-than-expected consumption trend I discussed, compounded by the retailer inventory tightening.

May 3, 2023 / CEO / receipt, needs a key / Fabrice Alfreda, CEO | earnings call 2023-05-03 | transcript db4288f9-f619-4767-953b-72d3b3a5da47 | chars 4708-5002 | segment 5