The Estée Lauder Companies Inc. (NYSE:EL) Q4 2023 Earnings Call Transcript

Fabrizio Freda: And I would just want to add a bit more color to the concept that Tracey just underlined on the fact that despite this will take a couple of years to ramp up to get to the full leveraging, the benefits on agility will come as we go earlier. And the reason for that is that the agility is particularly needed on what we call the heroes SKUs. So the high-volume and the high-volume SKU, the one which can benefit more from speed to market, forecasting decisions which are closer to the moment where the market happens, the ability to produce depending on the trends. And so we will gradually ramp up, but we will ramp up first the SKUs and the brands that have the biggest need to create agility in Asia. And over time, then this will become our, as Tracey described, ongoing in a couple of years, we will have the full agility of the system implement.

Operator: That concludes today’s question-and-answer session. If you are unable to join for the entire call, a playback will be available at 1:00 p.m. Eastern Time today through September 1. To hear a recording of the call, please dial (877) 344-7529, pass code #4620398. That concludes today’s Estee Lauder conference call. I would like to thank you all for your participation, and wish you all a good day.