ESTEE LAUDER COMPANIES INC (EL) Form 10-Q — Nov 2, 2026
Estée Lauder delivered a sharp turnaround in its fiscal 2027 first quarter, with net sales up 7% to $3,715 million and net earnings surging to $233 million from $47 million a year earlier. Diluted EPS rose to $0.64 from $0.13, and adjusted diluted EPS came in at $0.72 versus $0.32, driven by higher skin care and fragrance sales and lower restructuring charges. Gross margin expanded to 75.7% from 73.4% and the effective tax rate fell to 32.5% from 56.9%, while every geographic region grew, led by Mainland China at $614 million in sales versus $532 million. Management noted tariffs negatively impacted results and that share buybacks remain suspended since December 2022.
Key figures
- Revenue
- 3715
- Net Income
- 233
- Total Debt
- 7251
- Revenue Yoy
- 7%
- Total Assets
- 19963
- Cash Position
- 3198
- Shares Outstanding
- 362,330,460 total (247,823,116 Class A + 114,507,344 Class B as of October 26, 2026)
- Gross margin
- 75.7% vs 73.4%
- Operating income
- 408
- Dividend per share
- $0.35 declared October 30, 2026, payable December 15, 2026
- Effective tax rate
- 32.5% vs 56.9%
- Prior year revenue
- 3481
- Adjusted diluted eps
- $0.72 vs $0.32
- Prior year net earnings
- 47
- Expected remeasurement gain
- $94M in fiscal 2027 Q2
- Prior year operating income
- 169
- Cumulative restructuring charges
- $1,475M through September 30, 2026
- Forest essentials purchase price
- $160M for remaining 51% plus $37M one-time inducement payment
AI analysis
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