THE WHAT? The Estée Lauder Companies has reported third-quarter fiscal 2026 results, raising its full-year outlook on the back of continued performance momentum.
THE DETAILS The company delivered net sales of $3.7 billion, up 5%, with organic growth of 2%, supported by double-digit growth in fragrance and gains across three of four regions, led by Mainland China. Adjusted operating margin expanded to 15.0%, driven by gross margin improvements and benefits from its Profit Recovery and Growth Plan (PRGP), despite reported margin pressure from restructuring costs and an $84 million legal provision.
Innovation and distribution expansion remained key, with launches across brands including Estée Lauder, M·A·C, TOM FORD and La Mer, alongside channel growth through Amazon, TikTok Shop and expanded specialty retail partnerships. The company also progressed its “Beauty Reimagined” strategy and One ELC operating model, supported by partnerships with Shopify, Accenture and WPP.
Looking ahead, Estée Lauder expects fiscal 2027 net sales growth of 3% to 5% and operating margins approaching 13%, signalling continued recovery and operational improvement.
THE WHY? The results reflect the company’s ongoing transformation strategy, with a focus on margin recovery, innovation, and channel expansion to restore growth and strengthen competitiveness in a challenging macroeconomic environment.
Source: Estée Lauder
