EL · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

ESTEE LAUDER COMPANIES INC · 2026-11-02 · Importance 31 · Surprise 32

Gross margin increased to 75.7% for the quarter ended September 30, 2026, from 73.4% in the prior-year period, a 2.3 percentage-point improvement. The company attributed the increase to business mix, higher sales, net strategic pricing, product mix and benefits enabled by the Profit Recovery and Growth Plan (PRGP). PRGP supply-chain cost efficiencies and shifts in the manufacturing network helped, partly offset by cost inflation.

Key facts

• ESTEE LAUDER COMPANIES INC's gross margin increased to 75.7% in the three months ended September 30, 2026, from 73.4% in the prior-year period. source
• ESTEE LAUDER COMPANIES INC gross margin improvement reflected business mix, increased net sales, net strategic pricing, product mix, and net benefits enabled through the PRGP; supply-chain efficiencies and manufacturing-network shifts were partly offset by cost inflation. source