Estée Lauder Q1 FY2027: sales up 6.7%, EPS $0.64, outlook raised
Estée Lauder's fiscal 2027 first quarter was a genuine operating step-up: sales rose 6.7% to $3.72 billion, gross margin reached 75.7% and GAAP EPS hit $0.64 against $0.13 a year ago. Management raised full-year guidance on sales, margin and EPS. Read the quarter as a margin-recovery story first and a growth story second — the top line accelerated, but the profit jump leaned heavily on cost savings and a much lower tax rate.
1 · Expected vs. Actual
Free preview belowGAAP EPS was $0.64 versus $0.13, and adjusted EPS $0.72 versus $0.32 — more than double. Operating income rose to $408 million from $169 million, lifting operating margin to 11.0% from 4.9%, helped by $45 million less in restructuring charges. A falling effective tax rate also mattered: 32.5% versus 56.9% a year ago, though the $112 million tax bill is still heavy against $345 million of pretax earnings.
Sales rose 6.7% to $3.72 billion from $3.48 billion, with organic growth of 6.2% after stripping out a $20 million currency drag. Gross margin jumped to 75.7% from 73.4%, which is where most of the quarter's extra profit came from. Fragrance did the heavy lifting at $861 million, up 19.4%, while Skin Care added 4.8% and Makeup only 1.7%.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-02
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