$EL · ESTEE LAUDER COMPANIES INC
Estée Lauder reported Q1 FY2027 results with net sales of $3.715B (+7% reported, +6% organic), adjusted EPS of $0.72 (vs. $0.32 prior year), and gross margin of 75.7%. The company raised its full-year FY2027 outlook for sales, margin, and EPS, citing accelerating growth and the impact of its Beauty Reimagined transformation program.
- Net sales rose 7% YoY to $3.715B, with organic net sales up 6%.
- Adjusted diluted EPS hit $0.72 vs. $0.32 a year ago, a 125% increase.
- Gross margin expanded 240 bps to 75.7%, driven by PRGP cost efficiencies and pricing.
- Adjusted operating margin nearly doubled to 12.1% from 7.3% in the prior-year quarter.
- Fragrance was the standout category with 20% organic net sales growth.
Extended-hours trading pushed shares to $112.00, +2.54% above the regular close, signaling a positive initial reaction to the broad-based beat and raised full-year outlook.
The combination of accelerating revenue growth, dramatic margin expansion, and a raised full-year outlook signals Estée Lauder's turnaround is gaining real traction after years of sluggish performance.
Estée Lauder's margin recovery and Fragrance momentum contrast with a mixed prestige beauty backdrop; share gains in China, Japan, and Korea suggest the Beauty Reimagined turnaround is gaining traction against L'Oréal and LVMH peers.
Foreign currency translation was a 1% headwind to organic net sales; Makeup grew only 1% organically, with Estée Lauder brand declining. The effective tax rate remains elevated at 32.5% (adjusted 31.9%), and transfer-pricing-related unrecognized tax benefits are rising.