EL · 10-K · 2026A · Full report

FX / Currency Impact

ESTEE LAUDER COMPANIES INC · 2026-08-19 · Importance 33 · Surprise 30 · Matches filing data

The Company uses foreign-currency forward contracts to manage exchange-rate exposure on balance-sheet items, anticipated transactions, and net investments in certain foreign operations. A hypothetical 10% weakening of the U.S. dollar would have reduced the fair value of its forward-contract portfolio by approximately $164 million at June 30, 2026, compared with $223 million at June 30, 2025. The Company also uses cross-currency swaps; under the same hypothetical weakening, their fair value would have decreased approximately $76 million at June 30, 2026, versus $85 million a year earlier.

Key facts

• A hypothetical 10% weakening of the U.S. dollar would have decreased the fair value of ESTEE LAUDER COMPANIES INC's foreign currency forward contract portfolio by approximately $164 million at June 30, 2026, compared with $223 million at June 30, 2025. source
• A hypothetical 10% weakening of the U.S. dollar would have decreased the fair value of ESTEE LAUDER COMPANIES INC's cross-currency swap contracts by approximately $76 million at June 30, 2026, compared with $85 million at June 30, 2025. source
• Foreign currency fluctuations could affect ESTEE LAUDER COMPANIES INC's operating results, foreign asset values, relative prices against foreign competitors in the same markets, and operating and manufacturing costs outside the United States. source

Impact estimates