Q3 2026 Estee Lauder Companies Inc Earnings Call Transcript
Key Points
- The Estee Lauder Companies Inc (EL) raised its 2026 outlook, demonstrating confidence in its business trajectory.
- Organic sales rose 2% in the third quarter, with a significant 40% growth in EPS, showcasing strong performance.
- The company achieved double-digit growth in fragrance and high single-digit growth in Mainland China, outperforming the Prestige Beauty market.
- The Estee Lauder Companies Inc (EL) expanded its operating margin significantly, reaching 15% in the third quarter, compared to 11.4% last year.
- The company is making strategic investments in high-growth channels like Amazon and TikTok, and expanding its brand presence in emerging markets.
- Sales in North America declined slightly, reflecting continued pressure in brick-and-mortar stores and retailer bankruptcies.
- The conflict in the Middle East negatively impacted third-quarter sales growth in the UCEM region by approximately 1 percentage point.
- The company is undergoing restructuring, which includes the anticipated exit of select underperforming doors in department stores and freestanding store channels.
- The Estee Lauder Companies Inc (EL) faces ongoing external uncertainty and volatility in the geopolitical and macroeconomic environment.
- The company is still in the process of finalizing its fiscal 2027 plan, indicating some uncertainty in future projections.
Good day, everyone, and welcome to the Estee Lauder Companies fiscal 2026 third-quarter conference Call. Today's webcast is being recorded. For opening remarks and introductions, I would like to turn the call over to the Senior Vice President of Investor Relations, Ms. Rainey Mancini.
Hello. On today's webcast are Stephane de la Faverie, President and Chief Executive Officer; and Akhil Shrivastava, Executive Vice President and Chief Financial Officer.
Since many of our remarks today contain forward-looking statements, let me refer you to our press release and our reports filed with the SEC, where you'll find factors that could cause actual results to differ materially from these forward-looking statements.
To facilitate the discussion of our underlying business, the commentary on our financial results and expectations is before restructuring and other charges and adjustments disclosed in our press release. Unless otherwise stated, all organic net sales growth also
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