Corrects Q2 sales in Key Details table to $4,229 mln from $4.20 bln, and accordingly reflects throughout that sales slightly beat, not slightly missed estimates
Overview
Beauty products maker's fiscal Q2 net sales rose 6%, slightly beating analyst expectations
Adjusted EPS for fiscal Q2 beat analyst expectations
Company raised fiscal 2026 full-year outlook, citing strong first half results
Outlook
Estee Lauder raises fiscal 2026 full-year outlook for adjusted EPS and operating margin
Company expects fiscal 2026 organic net sales growth between 1% and 3%
Tariff-related headwinds expected to impact fiscal 2026 profitability by $100 mln
Result Drivers
PRGP BENEFITS - Estee Lauder's Profit Recovery and Growth Plan improved margins through operational efficiencies, despite increased tariffs and inflation
SKIN CARE GROWTH - Skin Care sales rose 6%, driven by La Mer, Estée Lauder, and The Ordinary, supported by consumer investments and product launches
CHINA SALES BOOST - Double-digit sales growth in Mainland China, driven by 11.11 Global Shopping Festival and holiday performance, supported by consumer investments
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Sales | Slight Beat* | $4,229 mln | $4,225 mln (15 Analysts) |
Q2 Adjusted EPS | Beat | $0.89 | $0.84 (18 Analysts) |
Q2 EPS | $0.44 | ||
Q2 Net Income | $162 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the personal products peer group is "hold"
Wall Street's median 12-month price target for Estee Lauder Companies Inc is $110.50, about 7.6% below its February 4 closing price of $119.61
The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 40 three months ago
Press Release: ID:nBw71MrRpa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)