“We continue to forecast adjusted free cash flow productivity of 90% for the year”

In context

“ity costs remains unchanged, forecasting a commodity cost headwind of approximately $200 million after tax, which equates to a headwind of $0.08 per share for fiscal 2025. Since last earnings, foreign exchange rates have eased modestly. We are now estimating a headwind of approximately $200 million after tax, which equates to a headwind of $0.08 per share for fiscal 2025. We continue to expect lower non-operating income benefits for the fiscal year. As a reminder, the fourth-quarter base period includes the gain from the divestiture of our Vidal Sassoon brand in China. We are now forecasting only modest headwinds from net interest income and expense, and an effective tax rate roughly in line with the prior year. Combined, these below-the-line items are around a $0.04 headwind to core EPS. We continue to forecast adjusted free cash flow productivity of 90% for the year, and we have plans to pay around $10 billion in dividends and to repurchase $6 to $7 billion in common stock. Combined, returning $16 to $17 billion of cash to shareholders this fiscal year. This outlook assumes a range of $100 to $160 million in BT tariff impacts in the fourth quarter, or $0.03 to $0.05 per share. This assumes current tariff rates hold for the full quarter when products and materials inbound to the US and other tariffs impacted markets will be affected, and when those goods will be recognized in our P&L as finished products are sold to retailers. Currently, the largest US tariff impacts are coming from raw and packaging materials and some finished products sourced from China. While China accounts for just over 10% of total imports exposure to the US, the size of the tari”