Estée Lauder Returns to Sales Growth, Raises Fiscal 2027 Margin Outlook

The Estée Lauder Companies reported a return to annual sales growth and improved profitability for the fiscal year ended June 30, 2026, while raising part of its fiscal 2027 margin outlook. The prestige-beauty company reported fiscal 2026 net sales of $15.049 billion, up 5% from the prior year.

On an organic basis, a non-GAAP comparison that adjusts net sales for certain returns associated with restructuring and other activities, Estée Lauder said sales increased 3% for the year. The company also reported fourth-quarter net-sales growth of 6% on a reported basis and 5% on an organic basis.

Profitability improved from the prior year

Estée Lauder reported GAAP operating income of $780 million for fiscal 2026, compared with a GAAP operating loss of $785 million in fiscal 2025. Its reported operating margin was 5.2%, compared with negative 5.5% in the prior year. The comparison reflects, among other items, the prior year’s goodwill and intangible-asset impairments and talcum-litigation settlement charges described in the company’s release.

On an adjusted, non-GAAP basis, operating income was $1.687 billion, up 47% from $1.146 billion, and adjusted operating margin was 11.2%, up from 8.0%. The company said operating leverage and gross-margin expansion supported the improvement. Reported and adjusted figures should not be treated as interchangeable because they use different accounting presentations.

Restructuring and digital distribution

The company said it concluded restructuring-program approvals under its Profit Recovery and Growth Plan as of June 30. It expects total gross benefits from the plan to reach $1.2 billion and a total net reduction of 10,000 positions. Those amounts are company expectations and plan-level estimates rather than a guarantee of future financial results.

Estée Lauder also said it expanded consumer coverage on Amazon to 13 brands in 11 markets and on TikTok Shop to 12 brands in nine markets during fiscal 2026. The company reported adding Jo Malone London and TOM FORD to its group of billion-dollar brands, bringing the count to six.

Fiscal 2027 outlook

Looking ahead, Estée Lauder affirmed guidance for fiscal 2027 organic net-sales growth of 3% to 5%. It raised its adjusted operating-margin outlook to a range of 12.7% to 13.5%. The guidance is forward-looking and depends on execution, demand across geographic markets, inflation, currency movements, tariffs and other factors the company identifies in its filings.

The company said it received $38 million in tariff refunds in the fiscal fourth quarter, partly offsetting a full-year gross impact of $102 million from incremental tariffs. That disclosure provides context for the results but does not establish what future tariff costs or refunds will be.

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Bloomberg Television’s interview with CEO Stéphane de La Faverie is included as executive commentary after the results. Financial figures in this article are from the company’s release.

Sources and reporting

• The Estée Lauder Companies: Fiscal 2026 Results, Aug. 19, 2026.
• Bloomberg Television: Estée Lauder CEO Says Company Has ‘Great Momentum’, Aug. 19, 2026.