Estée Lauder annual sales climb to $15 billion

• Estée Lauder reported fiscal 2026 net sales of $15 billion, up 5% year over year, with organic sales increasing 3%.
• The company expanded adjusted operating margin to 11.2% from 8% and reported operating margin of 5.2%.
• Estée Lauder affirmed fiscal 2027 organic sales growth guidance of 3% to 5% and raised adjusted operating margin guidance to 12.7% to 13.5%.

Estée Lauder Companies (NYSE:EL) reported fiscal 2026 net sales of $15 billion, up 5% year over year, as organic sales increased 3% and adjusted operating margin expanded to 11.2%.

The company’s fourth-quarter net sales increased 6% on a reported basis and 5% organically, while full-year sales growth was recorded across all geographic regions.

Estée Lauder’s gross margin increased 150 basis points to 75.5%, supported by benefits from its Profit Recovery and Growth Plan, including procurement improvements, expense optimization and lower excess inventory, partly offset by inflation and tariffs net of refunds.

The company affirmed fiscal 2027 organic net sales growth expectations of 3% to 5% and raised adjusted operating margin guidance to 12.7% to 13.5%.

Estée Lauder reported operating margin of 5.2% for fiscal 2026, compared with a loss-adjusted margin of (5.5)% in the prior year, which included $1.286 billion in goodwill and intangible asset impairments and $159 million in charges related to talcum litigation settlement agreements.

The company said adjusted operating margin improved due to operating leverage and gross margin expansion, while its Profit Recovery and Growth Plan supported additional consumer-facing investments and reduced non-consumer-facing expenses.