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Sep 30
Estee Lauder Q1 2026 Earnings Report
Estee Lauder reported a return to profitability and modest revenue growth in Q1 2026.
Key Takeaways
Estee Lauder posted a solid start to fiscal 2026 with a net income of $47M, driven by growth in Asia travel retail and luxury fragrance brands, alongside improved operational efficiency.
Returned to profitability with $47M in net income after a $156M loss in the prior year.
Revenue rose 4% to $3.48B, supported by strong performance in Asia/Pacific and luxury fragrance.
Adjusted EPS more than doubled year-over-year to $0.32.
Operating margin expanded significantly due to restructuring and cost-cutting under the PRGP.
Estee Lauder
Estee Lauder
Estee Lauder Revenue by Segment
Estee Lauder Revenue by Geographic Location
Revenue by Segment
Skin Care Revenue
CapyFin.comMakeup Revenue
CapyFin.comFragrance Revenue
CapyFin.comHair Care Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
The Americas Revenue
CapyFin.comEUKEM Revenue
CapyFin.comAsia/Pacific Revenue
CapyFin.comMainland China Revenue
CapyFin.com Forward Guidance
The company reaffirmed its fiscal 2026 outlook, targeting a return to sales growth and margin expansion amid restructuring and efficiency efforts.
Positive Outlook
- Reaffirmed FY26 outlook with focus on profitability.
- Majority of PRGP benefits expected in FY27.
- Organic sales growth expected in all regions.
- Continued innovation and expanded brand distribution.
- Restructuring actions to yield up to $1B in annual gross benefits.
Challenges Ahead
- Tariff-related headwinds expected to impact FY26 profit by ~$100M.
- Challenging North America retail environment with store closures and elevated inventory.
- Currency volatility remains a concern.
- Softness in Hair Care continues due to Aveda restructuring.
- Higher consumer-facing investments may pressure margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income