NET EARNINGS (LOSS) ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE

3 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

NET EARNINGS (LOSS) ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE

NET EARNINGS (LOSS) ATTRIBUTABLE TO THE ESTÉE LAUDER COMPANIES INC. PER COMMON SHARE

Net earnings (loss) attributable to The Estée Lauder Companies Inc. per common share (“basic EPS”) is computed by dividing net earnings (loss) attributable to The Estée Lauder Companies Inc. by the weighted average number of common shares outstanding and shares underlying PSUs and RSUs where the vesting conditions have been met. Net earnings (loss) attributable to The Estée Lauder Companies Inc. per common share assuming dilution (“diluted EPS”) is computed by reflecting potential dilution from stock-based awards using the treasury stock method.

A reconciliation between the numerator and denominator of the basic and diluted EPS computations is as follows:

	Three Months Ended September 30
(In millions, except per share data)	2024		2023
Numerator:
Net earnings (loss) attributable to The Estée Lauder Companies Inc.	$	(156)	$	31
Denominator:
Weighted average common shares outstanding – Basic	359.6		358.4
Effect of dilutive stock options(1)	—		1.3
Effect of PSUs(1)	—		0.1
Effect of RSUs(1)	—		0.7
Weighted average common shares outstanding – Diluted	359.6		360.5
Net earnings (loss) attributable to The Estée Lauder Companies Inc. per common share:
Basic	$	(.43)	$	.09
Diluted	$	(.43)	$	.09

(1)For the three months ended September 30, 2024, the effects of potentially dilutive stock options, PSUs and RSUs were excluded from the computation of diluted EPS as they were anti-dilutive due to the net loss incurred during the period.

The shares of Class A Common Stock underlying stock options, RSUs and PSUs that were excluded in the computation of diluted EPS because their inclusion would be anti-dilutive were as follows:

	Three Months Ended September 30
(In millions)	2024	2023
Stock options	7.6	4.8
RSUs and PSUs	1.2	0.1

As of September 30, 2024 and 2023, 0.6 million and 0.4 million shares, respectively, of Class A Common Stock underlying PSUs have been excluded from the computation of diluted EPS as the number of shares ultimately issued is contingent on the achievement of applicable performance targets of the Company, as discussed in Note 9 – Stock Programs.