Estée Lauder Raises Fiscal 2027 Outlook as Quarterly Sales Rise 7%

Operating income rose to $408 million from $169 million, while operating margin reached 11%, compared with 4.9%. Adjusted operating margin increased to 12.1% from 7.3%. Diluted earnings per share were $0.64, against $0.13 a year earlier.

Stéphane de La Faverie, President and CEO, said in the company’s November 2 earnings release: “Growth is accelerating, profitability is strengthening significantly, and the impact of Beauty Reimagined is becoming increasingly evident across our business.” For fiscal 2027, the company now expects reported sales growth of 5%–6.5%, up from 3%–5%.

Its organic sales forecast increased to 4%–5.5%, from 3%–5%. The adjusted earnings forecast rose to $3.20–$3.45 per share, from $3.10–$3.35. The updated outlook includes an adjusted operating margin of 12.9%–13.7%. Estée Lauder also raised its forecast for operating cash flow to $1.4 billion–$1.5 billion.