The Estée Lauder Cos. announced fourth-quarter results demonstrating ongoing recovery momentum, with net sales reaching $3.6 billion, a 6 percent increase from the prior year. The results surpassed Wall Street analyst forecasts of $3.54 billion, with growth registered across all product categories except hair care and spanning all geographic regions.
The company reported a net loss of $116 million for the quarter, compared to $546 million in the equivalent prior-year period. Diluted net loss per share totaled 32 cents, down from $1.51 previously. On an adjusted basis, excluding restructuring and other charges, diluted net earnings per share reached 39 cents, marking a significant improvement from 9 cents in the prior-year quarter.
For the full fiscal year 2026, net sales grew to $15 billion, representing a 5 percent increase. Organic net sales expanded 3 percent for the year. The company received $38 million in tariff refunds during the fourth quarter, partially offsetting the full-year gross tariff impact of $102 million.
Looking ahead to fiscal 2027, management provided guidance for net sales growth between 3 percent and 5 percent. The company anticipated stronger growth in the first half of the fiscal year due to increased new product launches, higher travel retail shipments reflecting improving retail conditions, and a lower comparison base from the prior year’s second half. Management also projected continued growth in fragrance and skin care categories, along with a return to growth in makeup across the full fiscal year.
Chief Executive Officer Stéphane de La Faverie stated the company was affirming confidence in accelerating organic sales growth and raising its outlook for stronger adjusted operating margins, with plans to diversify growth across product categories and geographies, including acceleration in North America. The company indicated it did not expect Middle East geopolitical conditions to materially impact fiscal 2027 results, while pledging to monitor developments.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI