Estee Lauder Companies Inc

XMUN:ELAA

Outlook raised: Estée Lauder raised its fiscal 2026 outlook, now expecting about 3% organic sales growth at the high end of prior guidance and operating margin of 10.7% to 11%, with fiscal 2027 preliminarily set at 3% to 5% growth and 12.5% to 13% operating margin.

Quarter strong: Third-quarter organic sales grew 2%, operating margin expanded to 15%, and diluted EPS rose 40% to $0.91, helped by gross margin improvement and PRGP savings.

Broad-based momentum: Management said fragrance led growth, online sales were strong, and China, emerging markets, and travel retail in Hainan all outperformed broader prestige beauty.

North America improving: The company said the U.S. and North America are stabilizing, with share gains in several categories, but department-store pressure and retailer bankruptcies still weighed on sales.

Cost actions expanding: Estée Lauder expanded its restructuring program and now expects total restructuring and other charges of $1.5 billion to $1.7 billion before taxes, aiming to support more leverage in the business.

Travel retail and Middle East: The Middle East conflict hurt third-quarter growth by about 1 percentage point, and management expects about a 2-point drag in Q4 sales growth and $0.06 of EPS impact.

Strategy focus: Management emphasized Beauty Reimagined, One ELC, and channel shifts toward online, Amazon, Sephora, TikTok Shop, and specialty-multi, while continuing to trim weaker physical doors.