EL · 8-K · 20261104PR000066

Operating Margin Drivers

ESTEE LAUDER COMPANIES INC · 2026-11-04 · Importance 56 · Surprise 42

The company targets an adjusted operating margin of 16.5%-18.5% in fiscal 2030. It expects greater margin expansion in fiscal 2028 than in fiscal 2029 and 2030, reflecting a full-year run-rate of benefits from final execution of initiatives approved under its Profit Recovery and Growth Plan through fiscal 2027. Additional drivers include continued reductions in non-consumer-facing expenses through everyday efficiencies, while maintaining consumer-facing investment to fuel sales growth.

Key facts

• ESTEE LAUDER COMPANIES INC expects an adjusted operating margin of 16.5%-18.5% in fiscal 2030. source
• ESTEE LAUDER COMPANIES INC plans to complete execution of the approved business cases under its Profit Recovery and Growth Plan (PRGP). source
• ESTEE LAUDER COMPANIES INC expects greater margin expansion in fiscal 2028 than in fiscal years 2029 and 2030, reflecting a full-year run-rate of benefits from final execution of initiatives approved under its PRGP through fiscal 2027. source
• ESTEE LAUDER COMPANIES INC expects continued incremental reduction in non-consumer-facing expenses through everyday efficiencies. source
• ESTEE LAUDER COMPANIES INC expects continued consumer-facing investment to fuel sales growth. source
• ESTEE LAUDER COMPANIES INC plans to advance additional adjusted gross margin improvement through operational excellence. source
• ESTEE LAUDER COMPANIES INC plans to embed everyday efficiency across the organization. source