EL · 10-Q · 2026Q3 · Full report

Operating Expense Trends

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

Operating expenses were 64.7% of net sales in the September 2026 quarter, down from 68.5% a year earlier. Higher consumer-facing investment, particularly advertising for new product innovation, key campaigns and expanded consumer reach, was largely offset by sales growth. Non-consumer-facing expenses were lower overall, with employee-related cost reductions enabled by the PRGP contributing to the improvement.

Key facts

• ESTEE LAUDER COMPANIES INC operating expenses were 64.7% of net sales in the three months ended September 30, 2026, compared with 68.5% in the prior-year period. source
• ESTEE LAUDER COMPANIES INC's operating expense margin favorability reflected sales growth largely offsetting increased consumer-facing investment, primarily advertising for innovation, campaigns, and expanded reach; lower aggregate non-consumer-facing expenses reflected PRGP-enabled employee-cost reductions. source
• Real-estate rates and availability could affect ESTEE LAUDER COMPANIES INC’s ability to increase or maintain retail locations and the costs of its other facilities. source
• Since June 30, 2026, ESTEE LAUDER COMPANIES INC has had no significant changes to the assumptions and estimates related to its critical accounting policies. source