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The Estee Lauder (The Estee Lauder) Gross Margin % : 71.90% (As of Mar. 2024)


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What is The Estee Lauder Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The Estee Lauder's Gross Profit for the three months ended in Mar. 2024 was $2,833 Mil. The Estee Lauder's Revenue for the three months ended in Mar. 2024 was $3,940 Mil. Therefore, The Estee Lauder's Gross Margin % for the quarter that ended in Mar. 2024 was 71.90%.

Warning Sign:

The Estee Lauder Companies Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


The historical rank and industry rank for The Estee Lauder's Gross Margin % or its related term are showing as below:

EL' s Gross Margin % Range Over the Past 10 Years
Min: 70.72   Med: 78.22   Max: 80.63
Current: 70.72


During the past 13 years, the highest Gross Margin % of The Estee Lauder was 80.63%. The lowest was 70.72%. And the median was 78.22%.

EL's Gross Margin % is ranked better than
94.62% of 1822 companies
in the Consumer Packaged Goods industry
Industry Median: 25.305 vs EL: 70.72

The Estee Lauder had a gross margin of 71.90% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for The Estee Lauder was -1.60% per year.


The Estee Lauder Gross Margin % Historical Data

The historical data trend for The Estee Lauder's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Estee Lauder Gross Margin % Chart

The Estee Lauder Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 77.21 75.15 76.36 75.73 71.31

The Estee Lauder Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 69.10 67.78 69.58 73.03 71.90

Competitive Comparison of The Estee Lauder's Gross Margin %

For the Household & Personal Products subindustry, The Estee Lauder's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Estee Lauder's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Estee Lauder's Gross Margin % falls into.



The Estee Lauder Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

The Estee Lauder's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=11346 / 15910
=(Revenue - Cost of Goods Sold) / Revenue
=(15910 - 4564) / 15910
=71.31 %

The Estee Lauder's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=2833 / 3940
=(Revenue - Cost of Goods Sold) / Revenue
=(3940 - 1107) / 3940
=71.90 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


The Estee Lauder  (NYSE:EL) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

The Estee Lauder had a gross margin of 71.90% for the quarter that ended in Mar. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


The Estee Lauder Gross Margin % Related Terms

Thank you for viewing the detailed overview of The Estee Lauder's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Estee Lauder (The Estee Lauder) Business Description

Address
767 Fifth Avenue, New York, NY, USA, 10153
Estee Lauder is a leader in the global prestige beauty market, participating across skin care (56% of 2022 sales), makeup (26%), fragrance (14%), and hair care (4%) categories, with top-selling brands such as Estee Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins. The firm operates in more than 150 countries, generating 26% of revenue from the Americas, 43% from Europe, the Middle East and Africa (including travel retail), and 31% from Asia Pacific. Estee Lauder sells its products through department stores, travel retail, specialty multibrand beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.
Executives
Charlene Barshefsky director
Jane Lauder director 767 FIFTH AVENUE, NEW YORK NY 10153
Hudis Jane Hertzmark officer: Group President C/O THE ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Carl P. Haney officer: EVP-Global R&D C/O ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Jennifer Hyman director 767 FIFTH AVENUE, C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Fabrizio Freda officer: President and COO 767 FIFTH AVENUE, NEW YORK NY 10153
De La Faverie Stephane officer: Executive Group President C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Michael O'hare officer: EVP-Global Human Resources 767 FIFTH AVENUE, NEW YORK NY 10153
Wei Sun Christianson director MORGAN STANLEY, TOWER 1, 18 TAIPINGQIAO ST. XICHENG DIST, BEIJING F4 1000032
Barry S Sternlicht director STARWOOD CAPITAL GROUP GLOBAL LP, 1601 WASHINGTON AVENUE, SUITE 800, MIAMI BEACH FL 33139
Angela Wei Dong director C/O THE ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Peter Jueptner officer: President, International
Arturo Nunez director C/O THE ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Ronald S Lauder director, 10 percent owner, officer: Chairman Clinique Labs, Inc. 767 FIFTH AVENUE, NEW YORK NY 10153
John Demsey officer: Group President 767 FIFTH AVENUE, NEW YORK NY 10036