EL · 10-Q · 2026Q3 · Full report

Foreign Exchange Risk

ESTEE LAUDER COMPANIES INC · 2026-11-02 · Importance 30 · Surprise 14

A hypothetical 10% weakening of the U.S. dollar would have reduced the fair value of the foreign-currency forward portfolio by approximately $159 million at September 30, 2026, compared with $164 million at June 30, 2026. The filing states that this sensitivity excludes underlying foreign-currency exposures. A similar 10% weakening would have reduced the fair value of cross-currency swaps by approximately $76 million at both dates.

Key facts

• A hypothetical 10% weakening of the U.S. dollar would have reduced the fair value of ESTEE LAUDER COMPANIES INC's foreign currency forward contract portfolio by approximately $159 million at September 30, 2026, compared with $164 million at June 30, 2026. source
• A hypothetical 10% weakening of the U.S. dollar would have reduced the fair value of ESTEE LAUDER COMPANIES INC's cross-currency swap contracts by approximately $76 million at September 30, 2026 and June 30, 2026. source
• Foreign-currency fluctuations could affect ESTEE LAUDER COMPANIES INC’s operating results, foreign-asset values, relative selling prices versus foreign competitors, and operating and manufacturing costs outside the United States. source