Estee Lauder Companies, Inc. (the) · NYSE:EL
Estee Lauder Companies, Inc. (the) — The Estée Lauder Companies — Q1 2027 Earnings Presentation
37 slides from Estee Lauder Companies, Inc. (the)'s earnings presentation, November 2026
Slide 1: Q1 2027 Earnings Conference Call
Q1 2027 EARNINGS CONFERENCE CALL
Slide 2: Rainey Mancini, Senior Vice President, Investor Relations
Q1 FISCAL 2027 EARNINGS CONFERENCE CALL Rainey Mancini SENIOR VICE PRESIDENT, INVESTOR RELATIONS
Slide 3: Forward Looking and Non-GAAP Disclosures
Q1 FISCAL 2027 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. Such statemen
Slide 4: Stéphane de La Faverie, President and CEO
Q1 FISCAL 2027 EARNINGS CONFERENCE CALL Stéphane de La Faverie PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 5: Raised Fiscal 2027 Outlook
RAISED FISCAL 2027 OUTLOOK +4.0%-5.5% FY27 Organic Sales1 Growth Up from +3%-5% +170-250 bps FY27 Adjusted Operating Margin1 Expansion Up from +150-230 bps 1 See Appendix for footnote definition de nition fi
Slide 6: Delivered Strong Growth in the First Quarter
DELIVERED STRONG GROWTH IN THE FIRST QUARTER +7% Reported Sales Growth +6% Organic Sales Growth1 1 See Appendix for footnote definition
Slide 7: Significantly Improved Profitability in the First Quarter
SIGNIFICANTLY IMPROVED PROFITABILITY IN THE FIRST QUARTER +240 bps +480 bps Adjusted Adjusted Gross Margin1 Operating Margin1 +125% +8% Adjusted Diluted Consumer-Facing EPS1 Growth Investments 1 See Appendix for footnote definition de nition fi
Slide 8: Powered Fragrance: Prestige Through Luxury
POWERED FRAGRANCE: PRESTIGE THROUGH LUXURY +20% Organically1 1 See Appendix for footnote definition
Slide 9: Amplified Skin Care: Heroes + Innovation
AMPLIFIED SKIN CARE: HEROES + INNOVATION +4% Organically1 1 See Appendix for footnote definition
Slide 10: Reignited Makeup: Led by Artistry and Luxury
REIGNITED MAKEUP: LED BY ARTISTRY AND LUXURY +1% Organically1 1 See Appendix for footnote definition
Slide 11: Stabilized Hair Care: Driven by The Ordinary
STABILIZED HAIR CARE: DRIVEN BY THE ORDINARY
Slide 12: Delivered Growth in Every Region for the 2nd Consecutive Quarter
DELIVERED GROWTH IN EVERY REGION FOR THE 2 CONSECUTIVE QUARTER ND THE AMERICAS EUKEM ASIA/PACIFIC MAINLAND CHINA Q4FY26 +5% +1% +9% +7% Q1FY27 +4% +4% +10% +9% Organically1 1 See Appendix for footnote definition
Slide 13: Realized Strong Growth in Asia/Pacific, Led by Travel Retail
REALIZED STRONG GROWTH IN ASIA/PACIFIC, LED BY TRAVEL RETAIL
Slide 14: Delivered Vibrant Growth in Mainland China
DELIVERED VIBRANT GROWTH IN MAINLAND CHINA SKIN CARE: +High Single-Digit 2 +9% MAKEUP: +High Single-Digit 2 Organically 1 FRAGRANCE: +Double-Digit 2 1, 2 S ee Appendix for footnote definition
Slide 15: Achieved Strong Performance in Priority Emerging Markets
ACHIEVED STRONG PERFORMANCE IN PRIORITY EMERGING MARKETS +15% Organically1,3 The Ordinary in Istanbul, Turkey Le Labo freestanding store in Merida, Mexico FOREVER IN M·A·C Bridal Campaign shot in Mumbai, India 1, 3 S ee Appendix for footnote definition
Slide 16: Realized Online Strength Around the World
REALIZED ONLINE STRENGTH AROUND THE WORLD +High Single-Digit Organically1,4 THE AMERICAS EUKEM ASIA/PACIFIC MAINLAND CHINA +High Single-Digit +High Single-Digit +Double-Digit +High Single-Digit 1,4 See Appendix for footnote definition
Slide 17: Complemented by In-Store Performance
COMPLEMENTED BY IN-STORE PERFORMANCE +Mid Single-Digit Organically1,5 1, 5 See Appendix for footnote definition
Slide 18: Beauty Reimagined | Our Growth Playbook
BEAUTY REIMAGINED | OUR GROWTH PLAYBOOK 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 19: Stéphane de La Faverie, President and CEO
Q1 FISCAL 2027 EARNINGS CONFERENCE CALL Stéphane de La Faverie PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 20: Akhil Shrivastava, EVP, Chief Financial Officer
Q1 FISCAL 2027 EARNINGS CONFERENCE CALL Akhil Shrivastava EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER
Slide 21: Delivered Strong Start to Fiscal 2027
DELIVERED STRONG START TO FISCAL 2027 GROWTH MARGIN CASH Q1FY27 Q1FY27 Q1FY27 +6% +240 bps ($166M) Organic Net Sales Adjusted Gross Margin Net Cash Flows Used for Growth1 Expansion1 Operations Decrease of ~50% vs Q1FY26 +480 bps $3.2B Adjusted Operating Cash & Cash Equivalents Margin Expansion1 Rais
Slide 22: Saw Broad-Based Organic Net Sales Growth in Q1FY27
SAW BROAD-BASED ORGANIC NET SALES GROWTH IN Q1FY27 1 PRODUCT CATEGORY GROWTH1 SKIN CARE MAKEUP FRAGRANCE HAIR CARE OTHER TOTAL ELC +4% +1% +20% - +12% +6% GEOGRAPHIC REGION GROWTH1 The Americas EUKEM Asia/Paci c Mainland China Total ELC Q1FY26 Q4FY26 Q1FY27 1 See Appendix for footnote de nition fi f
Slide 23: Continued Adjusted Gross Margin Expansion
CONTINUED ADJUSTED GROSS MARGIN EXPANSION 1 +240 bps 75.7% Q1FY27 vs. 73.3% Q1FY26 ADJUSTED GROSS MARGIN1 Q1FY26 Q2FY26 Q3FY26 Q4FY26 73.3% 76.5% 76.4% 75.5% +60 bps vs. FY25 +40 bps vs. FY25 +140 bps vs. FY25 +360 bps vs. FY25 1 See Appendix for footnote de nition fi
Slide 24: Expanded Adjusted Operating Margin Through Sales Leverage and Cost Discipline
EXPANDED ADJUSTED OPERATING MARGIN 1 THROUGH SALES LEVERAGE & COST DISCIPLINE +480 bps 12.1% Q1FY27 vs. 7.3% Q1FY26 ADJUSTED OPERATING MARGIN1 Q1FY26 Q2FY26 Q3FY26 Q4FY26 7.3% 14.4% 15.0% 7.3% +300 bps vs. FY25 +290 bps vs. FY25 +360 bps vs. FY25 +330 bps vs. FY25 1 See Appendix for footnote de niti
Slide 25: Invested to Fuel Growth and Brand Desirability, With Cost Discipline
INVESTED TO FUEL GROWTH AND BRAND DESIRABILITY, WITH COST DISCIPLINE +8% Consumer-Facing Investments* Increased Advertising & Promotional Activities Enhanced Selling Productivity (1%) Reduction in Non-Consumer-Facing Expenses* *Compared to Q1FY26
Slide 26: Drove Speed and Productivity Through One ELC
DROVE SPEED AND PRODUCTIVITY THROUGH ONE ELC ENTERPRISE GLOBAL UNIFIED DTC BUSINESS MEDIA MODEL COMMERCE SERVICES ACCENTURE WPP SHOPIFY
Slide 27: Restructuring Program Component of the PRGP
RESTRUCTURING PROGRAM COMPONENT OF THE PRGP CONCLUDED APPROVALS AS OF JUNE 30, 2026 $1.5B Total Cumulative Charges Recognized through September 30, 2026 $41M in Q1FY27 $1.2B Expected Gross Benefits Range: $1.0B-$1.2B 10,000 Expected Net Reduction in Positions Range: 9,000-10,000 Enabled 50%+ increas
Slide 28: Effective Tax Rate and Diluted EPS
EFFECTIVE TAX RATE AND DILUTED EPS 1 from 40.5% to Q1FY26 31.9% Q1FY27 Adjusted Effective Tax Rate1 from $.32 to Q1FY26 $.72 Q1FY27 Adjusted Diluted EPS1, +125% 1 See Appendix for footnote de nition fi
Slide 29: Improved Cash Used for Operations
IMPROVED CASH USED FOR OPERATIONS from ($340M) to Q1FY26 ($166M) Q1FY27 Net Cash Flows Used for Operations NET CASH USED FOR OPERATIONS ($ IN MILLIONS) $(166) $(340) $(670) Q1FY25 Q1FY26 Q1FY27
Slide 30: Disciplined Capital Spending Drove Improving Free Cash Flow Trend
DISCIPLINED CAPITAL SPENDING DROVE IMPROVING FREE CASH FLOW TREND from $96M to Q1FY26 $69M Q1FY27 Capital Expenditures from ($436M) to Q1FY26 ($235M) Q1FY27 Free Cash Flow1 $3.2B Q1FY27 Cash & Cash Equivalents 1 See Appendix for footnote de nition fi
Slide 31: Completed Acquisition of Remaining Interest in Forest Essentials
COMPLETED ACQUISITION OF REMAINING INTEREST IN FOREST ESSENTIALS
Slide 32: Raised Fiscal 2027 Full-Year Outlook
RAISED FISCAL 2027 FULL-YEAR OUTLOOK +4.0%-5.5% Organic Net Sales Growth1 Up from +3%-5% previously 12.9%-13.7% Adjusted Operating Margin1 Up from 12.7%-13.5% previously 1 See Appendix for footnote de nition fi
Slide 33: Effective Tax Rate and Diluted EPS Outlook
EFFECTIVE TAX RATE AND DILUTED EPS OUTLOOK 1 33%-34% Full Year Adjusted ETR1 $3.20-$3.45 Adjusted Diluted EPS1 RAISED Full Year Outlook Up from $3.10-$3.35 previously 368 million shares Weighted-Average Share Count 1 See Appendix for footnote de nition fi
Slide 34: Fiscal 2027 Cash Generation
FISCAL 2027 CASH GENERATION $1.4B-$1.5B Net Cash Flows from Operations RAISED Full Year Outlook Up from $1.3B-$1.4B previously ~4% of Projected Sales Capital Expenditures
Slide 35: Akhil Shrivastava, EVP, Chief Financial Officer
Q1 FISCAL 2027 EARNINGS CONFERENCE CALL Akhil Shrivastava EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER
Slide 36: Q1 2027 Earnings Conference Call Q&A
Q1 2027 EARNINGS CONFERENCE CALL Q&A
Slide 37: Appendix: Footnote Definitions
APPENDIX: FOOTNOTE DEFINITIONS 1Compared to Q1FY26 or period noted. Please refer to the Company’s website for additional information about non-GAAP measures, including reconciliations to the most directly comparable GAAP measures 2On a Reported basis, including the favorable impact from foreign curr
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