European Investor
02 Nov 2026, 15:19
Estée Lauder Slips 0.9% Despite Strong Q1 Growth and Raised Fiscal 2027 Outlook
Estée Lauder (NYSE: EL) shares fell about 0.9% despite reporting strong fiscal first-quarter 2027 results and raising its full-year outlook for sales, margins and earnings.
Net sales increased 7% year over year to $3.72 billion, while organic sales rose 6%. Growth was broad-based, with gains across nearly all product categories and every geographic region.
Profitability improved sharply. Gross margin expanded 230 basis points to 75.7%, while adjusted operating margin rose 480 basis points to 12.1%. Adjusted operating income increased 76% to $449 million.
Adjusted EPS more than doubled to $0.72 from $0.32 a year earlier, while GAAP EPS increased to $0.64 from $0.13. Management attributed the improvement to operating leverage, strategic pricing and cost efficiencies from its Profit Recovery and Growth Plan.
The company also raised its fiscal 2027 outlook for sales, margin and EPS, citing stronger momentum from its Beauty Reimagined strategy and improved execution.
The 0.9% decline appears to reflect a muted market reaction despite the stronger fundamentals. Investors may be weighing the improved outlook against already elevated expectations, while the quarter itself showed clear progress in sales growth, margin recovery and earnings.
Estée Lauder (NYSE: EL) shares fell about 0.9% despite reporting strong fiscal first-quarter 2027 results and raising its full-year outlook for sales, margins and earnings.
Net sales increased 7% year over year to $3.72 billion, while organic sales rose 6%. Growth was broad-based, with gains across nearly all product categories and every geographic region.
Profitability improved sharply. Gross margin expanded 230 basis points to 75.7%, while adjusted operating margin rose 480 basis points to 12.1%. Adjusted operating income increased 76% to $449 million.
Adjusted EPS more than doubled to $0.72 from $0.32 a year earlier, while GAAP EPS increased to $0.64 from $0.13. Management attributed the improvement to operating leverage, strategic pricing and cost efficiencies from its Profit Recovery and Growth Plan.
The company also raised its fiscal 2027 outlook for sales, margin and EPS, citing stronger momentum from its Beauty Reimagined strategy and improved execution.
The 0.9% decline appears to reflect a muted market reaction despite the stronger fundamentals. Investors may be weighing the improved outlook against already elevated expectations, while the quarter itself showed clear progress in sales growth, margin recovery and earnings.
