Estée Lauder lifts its fiscal 2027 outlook and targets a 16.5%-18.5% operating margin by fiscal 2030
Chief executive Stéphane de La Faverie says the fiscal 2027 outlook "reflects accelerating organic sales growth and another year of significant profitability improvement".
Table: Reported sales growth, Adjusted operating margin, Adjusted diluted EPS growth
Estée Lauder is raising its fiscal 2027 outlook and aiming for an adjusted operating margin of 16.5%-18.5% by fiscal 2030. It set out both at a capital markets event in Shanghai.
The company now expects reported sales growth of 5.0%-6.5% in fiscal 2027, up from 3%-5%. It sees an adjusted operating margin of 12.9%-13.7%, up from 12.7%-13.5%, and adjusted diluted earnings per share growth of 28%-38%, up from 24%-34%.
For the years to fiscal 2030, it targets sustainable mid-single-digit organic net sales growth and double-digit adjusted diluted EPS growth.
The 2030 targets matter more than the raise. They give investors a multi-year yardstick for the Beauty Reimagined restructuring, so it can be judged on more than quarterly earnings beats. The margin goal sits well above the range expected for fiscal 2027, which leaves little room for slippage. Falling short would damage the turnaround case management is now asking the market to back.
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Estée Lauder reports Q1 EPS of $0.72, $0.20 better than expected. Revenue $3.71B vs $3.76B expected.
The company raised its fiscal 2027 outlook, now expecting organic net sales growth of 4.0% to 5.5%, up from its prior range of 3% to 5%. It raised its adjusted operating margin outlook to 12.9% to 13.7%, from 12.7% to 13.5% previously. It raised its adjusted diluted EPS outlook to $3.20 to $3.45, from $3.10 to $3.35 previously. Estée Lauder declared a quarterly dividend of $0.35 per share, payable December 15, 2026 to stockholders of record as of November 30, 2026.
President and CEO Stéphane de La Faverie said growth is accelerating and profitability strengthening as the company's Beauty Reimagined transformation takes hold, prompting the raised fiscal 2027 outlook.