Estee Lauder Companies, Inc. (the) · NYSE:EL
Estee Lauder Companies, Inc. (the) — The Estée Lauder Companies — FY2026 Earnings Presentation
41 slides from Estee Lauder Companies, Inc. (the)'s earnings presentation, 2026
Slide 1: Q4 and Full-Year Fiscal 2026 Earnings Conference Call
Q4 AND FULL-YEAR FISCAL 2026 EARNINGS CONFERENCE CALL
Slide 2: Rainey Mancini, SVP Investor Relations
Q4 AND FULL-YEAR FISCAL 2026 EARNINGS CONFERENCE CALL Rainey Mancini SENIOR VICE PRESIDENT, INVESTOR RELATIONS
Slide 3: Forward Looking and Non-GAAP Disclosures
Q4 AND FULL-YEAR FISCAL 2026 FORWARD LOOKING AND NON-GAAP DISCLOSURES Statements on this call and in this presentation, as well as remarks by the CEO and other members of management, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Slide 4: Stéphane de La Faverie, President and CEO
Q4 AND FULL-YEAR FISCAL 2026 EARNINGS CONFERENCE CALL Stéphane de La Faverie PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 5: Reignited Growth
REIGNITED GROWTH +5% FY26 Reported Sales Growth +3% FY26 Organic Sales Growth1 1 See Appendix for footnote de nition fi
Slide 6: Significantly Improved Profitability
SIGNIFICANTLY IMPROVED PROFITABILITY +150 bps FY26 Adjusted Gross Margin1 +320 bps FY26 Adjusted Operating Margin1 +66% FY26 Adjusted Diluted EPS1 1 See Appendix for footnote de nition fi
Slide 7: Expanded Our Billion-Dollar Club
EXPANDED OUR BILLION-DOLLAR CLUB Note: Based on FY26 Reported Net Sales
Slide 8: For an Unparalleled Portfolio of Billion-Dollar Brands
FOR AN UNPARALLELED PORTFOLIO OF BILLION-DOLLAR BRANDS Note: Based on FY26 Reported Net Sales
Slide 9: Fueled The Ordinary, Our Next Billion-Dollar Brand
FUELED THE ORDINARY, OUR NEXT BILLION-DOLLAR BRAND $1B $500M Fiscal 2022: Fiscal 2024: Fiscal 2026 First Full Fiscal as Reached 100% Majority Owner Ownership Note: Reported Net Sales for given year
Slide 10: Powered by Skin Care: Entry-Prestige Through Luxury
POWERED BY SKIN CARE: +4% ENTRY-PRESTIGE THROUGH LUXURY Organically 1 1 See Appendix for footnote de nition fi
Slide 11: Amplified by Fragrance: Heroes + Innovation
AMPLIFIED BY FRAGRANCE: HEROES + INNOVATION +10% Organically 1 1 See Appendix for footnote de nition fi
Slide 12: Stabilized Makeup: Led by Artistry + Luxury
STABILIZED MAKEUP: LED BY ARTISTRY + LUXURY +Low Single-Digit +Double-Digit Organically 2 Organically 2 2 See Appendix for footnote de nition fi
Slide 13: Narrowed the Organic Sales Decline in Hair Care
NARROWED THE ORGANIC SALES DECLINE IN HAIR CARE 1 -1% -10% Fiscal 2025 Fiscal 2026 1 See Appendix for footnote de nition fi
Slide 14: Improved Organic Sales Trends in Every Region
IMPROVED ORGANIC SALES TRENDS IN EVERY REGION 1 The Americas EUKEM Asia/Paci c Mainland China 9% 4% 1% 1% -1% -3% -6% -21% Fiscal 2025 Fiscal 2026 Fiscal 2025 Fiscal 2026 Fiscal 2025 Fiscal 2026 Fiscal 2025 Fiscal 2026 1 See Appendix for footnote de nition fi fi
Slide 15: Delivered Vibrant Growth in Mainland China
DELIVERED VIBRANT GROWTH IN MAINLAND CHINA SKIN CARE: +High Single-Digit 5 +9% MAKEUP: +Mid Single-Digit 5 Organically 1 FRAGRANCE: +Double-Digit 5 1, 5 S ee Appendix for footnote de nition fi
Slide 16: Powered Return to Growth in Travel Retail
POWERED RETURN TO GROWTH IN TRAVEL RETAIL WITH ENGAGING ACTIVATIONS
Slide 17: Accelerated Performance in Priority Emerging Markets
ACCELERATED PERFORMANCE IN PRIORITY EMERGING MARKETS +Mid Single-Digit 6 in FY25 to +High Single-Digit Growth 6 in FY26 Organically 1 1,6 S ee Appendix for footnote de nition fi
Slide 18: Improved Organic Sales Trends in Key Developed Markets
IMPROVED ORGANIC SALES TRENDS IN KEY DEVELOPED MARKETS 1 United States United Kingdom & Ireland Korea Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 1Q26 2Q26 3Q26 4Q26 1Q26 2Q26 3Q26 4Q26 1Q26 2Q26 3Q26 4Q26 1 See Appendix for footnote de nition fi
Slide 19: Delivered Outstanding Performance Online
DELIVERED OUTSTANDING PERFORMANCE ONLINE +Double-Digit As Reported and Organically 1 1 See Appendix for footnote de nition fi
Slide 20: Achieved Record-High Online Sales Mix
ACHIEVED RECORD-HIGH ONLINE SALES MIX 34% of Reported Sales +3 ppts from Fiscal 2025 Note: Based on FY26 Reported Net Sales
Slide 21: Slide 21
Slide 22: Delivered Beauty Reimagined, As Promised
DELIVERED BEAUTY REIMAGINED, AS PROMISED Five Action Plan Priorities 1 2 3 ACCELERATE CREATE BOOST BEST-IN-CLASS TRANSFORMATIVE CONSUMER-FACING CONSUMER INNOVATION INVESTMENTS 4 5 COVERAGE FUEL SUSTAINABLE REIMAGINE GROWTH THE WAY WE THROUGH BOLD WORK EFFICIENCIES
Slide 23: Skin Care: Launched Robust Innovation, Slate to Begin FY27
LAUNCHED ROBUST INNOVATION SLATE TO BEGIN FY27 SKIN CARE
Slide 24: Makeup & Fragrance: Launched Robust Innovation, Slate to Begin FY27
LAUNCHED ROBUST INNOVATION SLATE TO BEGIN FY27 MAKEUP & FRAGRANCE
Slide 25: Launched M·A·C's U.S. Online DTC on Shopify
LAUNCHED M·A·C’S U.S. ONLINE DTC ON SHOPIFY AS ROLLOUTS ACCELERATE
Slide 26: Stéphane de La Faverie, President and CEO
Q4 AND FULL-YEAR FISCAL 2026 EARNINGS CONFERENCE CALL Stéphane de La Faverie PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 27: Akhil Shrivastava, EVP and CFO
Q4 AND FULL-YEAR FISCAL 2026 EARNINGS CONFERENCE CALL Akhil Shrivastava EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER
Slide 28: Positioned for Sustainable Growth & Long-Term Value Creation
POSITIONED FOR SUSTAINABLE GROWTH & LONG-TERM VALUE CREATION +3% Organic Net Sales1 ~320 bps +66% Adjusted Operating Margin Expansion1 Adjusted Diluted EPS1 $1.8B Net Cash Flows from Operations $3.5B Cash & Cash Equivalents 1 See Appendix for footnote de nition fi
Slide 29: Broad-Based Organic Net Sales Growth in Q4
BROAD-BASED ORGANIC NET SALES GROWTH IN Q4 1 Growth by Product Category Skin Care 10% Makeup Fragrance Hair Care 0% Q1 Q2 Q3 Q4 Growth by Geographic Region 10% The Americas EUKEM Asia/Paci c Mainland China 0% Q1 Q2 Q3 Q4 1See Appendix for footnote de nition fi fi
Slide 30: Strong Adjusted Gross Margin
STRONG ADJUSTED GROSS MARGIN - NEARLY BACK TO HISTORIC LEVELS 3 76.0% 75.8% 75.5% 74.0% 73.0% 71.7% 71.4% 70.0% FY22 FY23 FY24 FY25 FY26 3 See Appendix for footnote de nition fi
Slide 31: Adjusted Operating Margin
ADJUSTED OPERATING MARGIN 1 Fiscal 2026 Adjusted Operating Margin Expansion Q1 Q2 Q3 Q4 FY 300 bps 290 bps 360 bps 330 bps 320bps Full-Year Adjusted Operating Margin 19.7% 20% 11.4% 11.2% 10.2% 8.0% 10% 0% FY22 FY23 FY24 FY25 FY26 1 See Appendix for footnote de nition fi
Slide 32: Optimizing Fixed Costs to Fund Growth
OPTIMIZING FIXED COSTS TO FUND GROWTH +7% Consumer-Facing Investments* (+4%, excluding FX) *Compared to FY25
Slide 33: Restructuring Program
RESTRUCTURING PROGRAM COMPONENT OF THE PRGP CONCLUDED APPROVALS AS OF JUNE 30, 2026 $1.4B Total Cumulative Charges Recognized through June 30, 2026 $0.8B in Fiscal 2026 $1.2B - Expected Gross Benefits Range: $1.0B to $1.2B 10,000 - Expected Net Reduction in Positions Range: 9,000 to 10,000 Enabled 5
Slide 34: Effective Tax Rate and Diluted EPS
EFFECTIVE TAX RATE AND DILUTED EPS 1 Adjusted ETR from 38.8 % 35.7% to FY25 FY26 Adjusted Diluted EPS from $.09 $.39 to Q4FY25 Q4FY26 from $1.51 $2.51to FY25 FY26 +66% 1 See Appendix for footnote de nition fi
Slide 35: Strong Cash Generation
STRONG CASH GENERATION from $1.3B $1.8B FY25 to FY26 Net Cash Flows from Operations from $0.6B $0.5B to FY25 FY26 Capital Expenditures from $0.7B $1.3B FY25 to FY26 Free Cash Flow1 $3.5B Cash & Cash Equivalents 1 See Appendix for footnote de nition fi
Slide 36: Fiscal 2027 Outlook – Affirms Accelerating Sales Growth
FISCAL 2027 OUTLOOK – AFFIRMS ACCELERATING SALES GROWTH, RAISES VIEW ON ADJUSTED OPERATING MARGIN +3%-5% Organic Net Sales4 12.7%-13.5% Adjusted Operating Margin4 Up from 12.5%-13.0% (Preliminary Outlook in May 2026) 4 See Appendix for footnote de nition fi
Slide 37: Fiscal 2027 Outlook – Effective Tax Rate and Diluted EPS
FISCAL 2027 OUTLOOK –3 EFFECTIVE TAX RATE AND DILUTED EPS 33%-34% Full Year Adjusted ETR $3.10-$3.35 Full Year Adjusted Diluted EPS 368 million shares Weighted-Average Share Count 3 See Appendix for footnote de nition fi
Slide 38: Fiscal 2027 Cash Generation
FISCAL 2027 CASH GENERATION $1.3B-$1.4B Net Cash Flows from Operations ~4% of Projected Sales Capital Expenditures
Slide 39: Akhil Shrivastava, EVP and CFO
Q4 AND FULL-YEAR FISCAL 2026 EARNINGS CONFERENCE CALL Akhil Shrivastava EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER
Slide 40: Q&A
Q4 AND FULL-YEAR FISCAL 2026 EARNINGS CONFERENCE CALL Q&A
Slide 41: Appendix: Footnote Definitions
APPENDIX: FOOTNOTE DEFINITIONS 1Compared to FY25. Please refer to the Company’s website for additional information about non-GAAP measures, including reconciliations to the most directly comparable GAAP measures 2Compared to FY25. Please refer to the Company’s website for additional information abou
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