Estée Lauder Companies reported fiscal 2026 fourth-quarter and full-year earnings on August 19, with organic net sales up 3% for the year, adjusted operating margin expanding 320 basis points to 11.2%, and adjusted diluted EPS jumping 66% to $2.51. Fragrance led growth with 10% organic sales increase, while Skin Care grew 4%, and Jo Malone London and TOM FORD joined the billion-dollar brand club, bringing the total to six brands at that scale. Gross margin reached 75.5%, up 150 basis points, aided by the Profit Recovery and Growth Plan, which is delivering $1.2 billion in annual gross benefits. Mainland China organic net sales grew 9%, and online sales hit a record 34% of total sales. For fiscal 2027, the company guides to organic sales growth of 3% to 5% and an adjusted operating margin of 12.7% to 13.5%. However, the Middle East conflict cut EMEA organic sales growth by 2 percentage points in the fourth quarter, Hair Care declined 1%, and Makeup finished flat. The restructuring plan eliminated 10,000 positions with $823 million in cumulative charges, and fiscal 2027 cash flow guidance of $1.3 billion to $1.4 billion is down from $1.8 billion in fiscal 2026. CEO Stephane de la Faverie ruled out large acquisitions, saying the company is not entertaining transformational deals. Hedge fund ownership held steady at 47 funds, and the stock trades at a forward P/E of 32.26, with short interest at 3.46% of float.
Estee Lauder Companies IncFiscal 2026 results show adjusted operating margin up 320bp to 11.2% and adjusted EPS up 66% to $2.51, with fiscal 2027 margin guidance of 12.7%-13.5%.
