Estée Lauder Raises Outlook as Adjusted Earnings More Than Double
Estée Lauder raised its full-year outlook after first-quarter adjusted earnings more than doubled, a sign that the beauty company's turnaround plan is gaining traction.
Net sales rose 6.7% to $3.72 billion for the quarter ended Sept. 30, and organic net sales grew 6%, the company said in an 8-K Monday. Diluted earnings were 64 cents per share, up from 13 cents, and adjusted earnings rose to 72 cents from 32 cents.
Margins widen
Gross margin expanded to 75.7% from 73.4%, helped by cost savings from the company's Profit Recovery and Growth Plan, sales leverage and pricing actions, according to the release. Adjusted operating margin climbed to 12.1% from 7.3%.
"We have moved beyond restoring growth," President and CEO Stéphane de La Faverie said, adding that the company is raising its fiscal 2027 outlook.
New outlook
Estée Lauder now expects:
- Organic net sales growth of 4.0% to 5.5%, up from 3% to 5%
- Adjusted operating margin of 12.9% to 13.7%, up from 12.7% to 13.5%
- Adjusted earnings of $3.20 to $3.45 per share, up from $3.10 to $3.35
The company said the outlook reflects its strong first quarter while remaining cautious amid geopolitical and macroeconomic uncertainty.
By the numbers
- $3.72 billion net sales, up 6.7%
- $0.72 adjusted EPS vs. $0.32
- 12.1% adjusted operating margin
- $3.20 to $3.45 raised fiscal 2027 adjusted EPS outlook
Sources
- Estée Lauder Companies Form 8-K with fiscal first-quarter 2027 results, filed Nov. 2, 2026 (accession 0001001250-26-000057)
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