EL

EX-99.1

2 fy2027q1exhibit991.htm

EX-99.1

Document

Exhibit 99.1

767 Fifth Avenue

New York, NY 10153

News

Contact:

Investors: Rainey Mancini

rmancini@estee.com

Media: Brendan Riley

briley@estee.com

THE ESTÉE LAUDER COMPANIES REPORTS FISCAL 2027 FIRST QUARTER RESULTS

Delivered Strong First Quarter Results across Sales, Margins and EPS

Net Sales Growth Across Nearly All Product Categories and Every Geographic Region

Raises Fiscal 2027 Full-Year Outlook on Sales, Margin and EPS

New York, November 2, 2026 - The Estée Lauder Companies Inc. (NYSE: EL) today reported its financial results for the first quarter ended September 30, 2026.

“Our first quarter of fiscal 2027 marks another powerful step forward for The Estée Lauder Companies. Growth is accelerating, profitability is strengthening significantly, and the impact of Beauty Reimagined is becoming increasingly evident across our business. We are bringing more breakthrough innovation to consumers, amplifying the desirability of our brands with bold, high impact campaigns, and building a faster, more agile organization that is converting momentum into stronger financial performance,” said Stéphane de La Faverie, President and CEO.

“We have moved beyond restoring growth. We are building diverse drivers for sustained profitable growth. The energy and determination of our teams, combined with the strength of our brands and the progress of our transformation, give me greater confidence than ever in the opportunities that lie ahead. We are raising our fiscal 2027 outlook, reflecting both our strong start and our conviction in the future we are creating.”

Page 1 of 19

FISCAL 2027 FIRST QUARTER SELECT FINANCIAL RESULTS (unaudited)1,2,3

Three Months Ended

September 30

Percentage

Change

($ in millions, except per share data)20262025

Net Sales$3,715 $3,481 7 %

Organic Net Sales, Non-GAAP1,2 $3,696 $3,480 6 %

Other Financial Results:

Gross Profit$2,813 $2,554 10 %

Gross Margin75.7 %73.4 %

Adjusted Gross Profit, Non-GAAP1,3 $2,814 $2,551 10 %

Adjusted Gross Margin, Non-GAAP1,3 75.7 %73.3 %

Operating Income$408 $169 100+%

Operating Margin11.0 %4.9 %

Adjusted Operating Income, Non-GAAP1,3 $449 $255 76 %

Adjusted Operating Margin, Non-GAAP1,3 12.1 %7.3 %

Diluted Net Earnings Per Common Share$.64 $.13 100+%

Adjusted Diluted Net Earnings Per Common Share, Non-GAAP1,3 $.72 $.32 100+%

•As Reported Net sales increased 7% to $3.7 billion. Organic Net sales increased 6%.

•As Reported Gross margin expanded 230 basis points, to 75.7% from 73.4% in the prior year and Adjusted Gross margin expanded 240 basis points, to 75.7% from 73.3%. This reflects net benefits from cost and operational efficiencies enabled through the Company’s Profit Recovery and Growth Plan (“PRGP”), sales leverage and the net benefit of strategic pricing actions, which collectively offset inflation. The PRGP benefits included procurement savings, expense optimization and manufacturing efficiencies.

•As Reported Operating margin expanded 610 basis points, to 11.0% from 4.9% in the prior year and Adjusted Operating margin expanded 480 basis points, to 12.1% from 7.3%, driven by operating leverage and gross margin expansion, which provided funding for increased consumer-facing investments4. As Reported Operating margin also reflects the year-over-year decrease in restructuring and other charges of $45 million.

•As Reported Effective tax rate decreased to 32.5% from 56.9% in the prior year and Adjusted Effective tax rate decreased to 31.9% from 40.5%, reflecting the impact of lower pre-tax income in the fiscal 2026 first quarter. The decrease was primarily driven by a more favorable estimated full-year mix of earnings, partially offset by an estimated increase in unrecognized tax benefits, primarily related to transfer pricing matters.

1See pages 16 and 17 for reconciliation between GAAP and Adjusted Non-GAAP measures.

2Organic net sales represents net sales excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures; as well as the impact from foreign currency translation. The Company believes that the Non-GAAP measure of organic net sales growth provides year-over-year sales comparisons on a consistent basis.

3Adjusted Non-GAAP measures are calculated based on Net Sales adjusted only for Returns associated with restructuring and other activities.

4Consumer-facing investments includes co-operative advertising, selling, advertising and promotional expenses, as well as store operating costs.

Page 2 of 19

•As Reported Diluted net earnings per common share increased to $.64 from $.13 in the prior year and Adjusted Diluted net earnings per common share increased to $.72, compared with $.32.

•For the three months ended September 30, 2026, Cash and cash equivalents increased to $3.20 billion compared with $2.22 billion in the prior year. This reflects decreases of $300 million and $702 million for t

EX-99.1

2 fy2026q3exhibit991.htm

EX-99.1

Document

Exhibit 99.1

767 Fifth Avenue

New York, NY 10153

News

Contact:

Investors: Rainey Mancini

rmancini@estee.com

Media: Brendan Riley

briley@estee.com

THE ESTÉE LAUDER COMPANIES REPORTS FISCAL 2026 THIRD QUARTER RESULTS

Raises Full-Year Fiscal 2026 Outlook on Organic Net Sales and Adjusted Profitability, Reflecting Strong Year-to-Date Results:

–Double-Digit Net Sales Growth in Fragrance

–Net Sales Growth in Three of Four Geographic Regions, Led by Mainland China

–Beauty Reimagined Execution on Track, PRGP Ahead of Expectations

Shares Preliminary View on Fiscal 2027:

–Net Sales Growth of 3% to 5%; Adjusted Operating Margin of 12.5% to 13.0%

New York, May 1, 2026 - The Estée Lauder Companies Inc. (NYSE: EL) today reported its financial results for the third quarter ended March 31, 2026.

“Our third quarter results extend strong year-to-date performance, driven by Beauty Reimagined,” said Stéphane de La Faverie, President and CEO. “In the first nine months of fiscal 2026, organic sales for Fragrance rose double-digits, while three of four regions grew, led by high single-digit growth in Mainland China where we outperformed prestige beauty to gain share. With momentum across all five action plan priorities of Beauty Reimagined, today we raised our fiscal 2026 outlook, now expecting organic sales growth at the high-end of the prior range and adjusted operating margin expansion to approach 300 basis points, bolstered in part by adjusted gross margin expansion.”

de La Faverie emphasized, “Fiscal 2026 is promising to be the pivotal year we intended, one in which we restore organic sales growth and expand our adjusted operating margin for the first time in four years. Looking ahead to fiscal 2027, we are confident in our improving trajectory and realizing the benefits of One ELC, especially its One Operating Ecosystem which will be fully deployed. Our preliminary view is to accelerate organic sales growth and for adjusted operating margin to approach 13%, albeit in an uncertain geopolitical and macroeconomic environment.”

Page 1 of 24

FISCAL 2026 THIRD QUARTER SELECT FINANCIAL RESULTS (unaudited)1,2,3

Three Months Ended

March 31

Percentage

Change

($ in millions, except per share data)20262025

Net Sales$3,712 $3,550 5 %

Organic Net Sales, Non-GAAP1,2 $3,611 $3,550 2 %

Other Financial Results:

Gross Profit$2,836 $2,661 7 %

Gross Margin76.4 %75.0 %

Adjusted Gross Profit, Non-GAAP1,3 $2,836 $2,661 7 %

Adjusted Gross Margin, Non-GAAP1,3 76.4 %75.0 %

Operating Income $249 $306 (19)%

Operating Margin6.7 %8.6 %

Adjusted Operating Income, Non-GAAP1,3 $557 $403 38 %

Adjusted Operating Margin, Non-GAAP1,3 15.0 %11.4 %

Diluted Net Earnings Per Common Share$.24 $.44 (45)%

Adjusted Diluted Net Earnings Per Common Share, Non-GAAP1,3 $.91 $.65 40 %

•As Reported Net sales increased 5% to $3.7 billion. Organic net sales increased 2%.

•As Reported and Adjusted Gross margin expanded 140 basis points, to 76.4% from 75.0%, reflecting net benefits from the Company’s Profit Recovery and Growth Plan (“PRGP”), which helped to offset the unfavorable impacts from incremental tariffs and inflation. This also reflects a favorable comparison to the prior-year period—which included an in-period charge for under-absorbed manufacturing overhead costs—as well as improved sales leverage.

•As Reported Operating margin contracted 190 basis points, to 6.7% from 8.6% in the prior-year period, reflecting the increase in restructuring and other charges of $127 million as well as the unfavorable impact of an $84 million loss contingency, net of the estimated probable insurance recoveries, related to a potential settlement of a securities class action recorded in the fiscal 2026 third quarter. Adjusted Operating margin expanded 360 basis points, to 15.0% from 11.4%, driven by gross margin expansion and operating leverage, including net benefits from the Company’s PRGP—which helped to reduce non-consumer-facing expenses, despite a more normalized level of employee incentive costs, and provided funding for increased consumer-facing investments4.

•Effective tax rate was 50.3%, compared with 34.0% in the prior-year period. The increase was primarily driven by the estimated unfavorable impact of recently enacted U.S. tax legislation. Adjusted effective tax rate was 31.8%, compared with 30.8%.

1See pages 20 - 22 for reconciliation between GAAP and Adjusted Non-GAAP measures.

2Organic net sales represents net sales excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures; as well as the impact from foreign currency translation. The Company believes that the Non-GAAP measure of organic net sales growth provides year-over-year sales comparisons on a consistent basis.

3Adjusted Non-GAAP measures are calculated based on Net Sales adjusted only for Returns associated with restructuring and other ac