Global Finance News
30 Oct 2025, 14:25
The Estée Lauder Companies Reports Strong Start to Fiscal 2026, Returns to Growth and Profitability
The Estée Lauder Companies Inc. (NYSE: EL) reported fiscal 2026 first-quarter net sales of $3.48 billion, up 4% year over year, marking a return to organic growth under its “Beauty Reimagined” strategy. Organic net sales rose 3%, driven by strong performance across skincare, fragrance, and makeup brands. Operating income reached $169 million versus a loss of $121 million a year earlier, while adjusted operating income surged 77% to $255 million, representing a 7.3% margin. Diluted EPS improved to $0.13 from a loss of $0.43, and adjusted EPS rose to $0.32 from $0.14.
CEO Stéphane de La Faverie said the company is regaining momentum with operational efficiencies and cost discipline under its Profit Recovery and Growth Plan (PRGP). Gross margin expanded 100 basis points to 73.4%, supported by procurement savings, lower promotions, and reduced obsolescence. Cash flow use improved sharply, with $340 million used in operating activities versus $670 million last year, while capital expenditures fell to $96 million.
The company reaffirmed its full-year fiscal 2026 outlook to restore positive sales growth and expand operating margins for the first time in four years.
Market and brand highlights included continued share gains in Mainland China led by La Mer, Le Labo, and TOM FORD; U.S. gains across The Ordinary, Estée Lauder, and M·A·C; and strong fragrance performance in Western Europe. Innovation launches featured new products from Estée Lauder, La Mer, TOM FORD, The Ordinary, and M·A·C, while digital expansion included new partnerships with Amazon, TikTok Shop, and Shopify to modernize global e-commerce. The company also opened a global Fragrance Atelier in Paris to accelerate prestige scent innovation and continued its social impact initiatives through Vital Voices and BEAUTY&YOU India.
The Estée Lauder Companies Inc. (NYSE: EL) reported fiscal 2026 first-quarter net sales of $3.48 billion, up 4% year over year, marking a return to organic growth under its “Beauty Reimagined” strategy. Organic net sales rose 3%, driven by strong performance across skincare, fragrance, and makeup brands. Operating income reached $169 million versus a loss of $121 million a year earlier, while adjusted operating income surged 77% to $255 million, representing a 7.3% margin. Diluted EPS improved to $0.13 from a loss of $0.43, and adjusted EPS rose to $0.32 from $0.14.
CEO Stéphane de La Faverie said the company is regaining momentum with operational efficiencies and cost discipline under its Profit Recovery and Growth Plan (PRGP). Gross margin expanded 100 basis points to 73.4%, supported by procurement savings, lower promotions, and reduced obsolescence. Cash flow use improved sharply, with $340 million used in operating activities versus $670 million last year, while capital expenditures fell to $96 million.
The company reaffirmed its full-year fiscal 2026 outlook to restore positive sales growth and expand operating margins for the first time in four years.
Market and brand highlights included continued share gains in Mainland China led by La Mer, Le Labo, and TOM FORD; U.S. gains across The Ordinary, Estée Lauder, and M·A·C; and strong fragrance performance in Western Europe. Innovation launches featured new products from Estée Lauder, La Mer, TOM FORD, The Ordinary, and M·A·C, while digital expansion included new partnerships with Amazon, TikTok Shop, and Shopify to modernize global e-commerce. The company also opened a global Fragrance Atelier in Paris to accelerate prestige scent innovation and continued its social impact initiatives through Vital Voices and BEAUTY&YOU India.
