EL Filings — Estee Lauder Companies Inc - FilingSpy
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Estee Lauder Companies Inc
A prestige beauty company with over 20 brands across skin care, makeup, fragrance, and hair care, including Estée Lauder, La Mer, M·A·C, Clinique, and TOM FORD. It was founded in 1946 by Estée Lauder and her husband Joseph, who started with just four skin care products. The name "Estée" came from her childhood nickname "Esty," while the couple adopted "Lauder" after a misspelling on Joseph's father's immigration papers; its first big break came when Estée handed out lipsticks at a Waldorf-Astoria charity event.
10-K · Fiscal year ended Jun 30, 2026 · SEC filing ↗
Estée Lauder returned to operating profit in FY2026 as revenue rose 5% and prior-year impairment charges did not recur.
Estée Lauder swung back to an after a loss the year before. rose 5% to $15.0 billion and widened 1.5 points to 75.5%, as the absence of $1,286 million in prior-year brand charges turned a $785 million operating loss into $780 million of operating income. The company is now rebuilding profitability, but tariffs are expected to weigh on fiscal 2027 results.
Key takeaways
swung to $780 million from a $785 million loss, driven by the absence of $1,286 million in non-cash charges recorded in FY2025 for , , and .
rose 5% to $15,049 million on 2% volume growth, 2% favorable foreign exchange, and 1% pricing, with skin care and fragrance leading the increase.
improved 150 to 75.5%, helped by supply-chain efficiencies and lower obsolescence charges under the , partly offset by inflation and tariffs.
Section summaries
Business
Estée Lauder is a global prestige beauty company with over 20 brands across skin care, makeup, fragrance, and hair care.
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The company operates as a through department stores, duty-free retailers, specialty-multi retailers, and e-commerce platforms, plus a business of about 1,600 freestanding stores and brand websites.
Its four product categories are skin care, makeup, fragrance, and hair care, with an 'other' category covering TOM FORD trademark and ancillary products.
Skin care rose $842 million and fragrance operating income rose $582 million, while makeup and hair care losses narrowed; all four geographic regions improved, led by The Americas and Asia/Pacific.
The restructuring program was expanded to target about 10,000 position reductions and roughly $1,200 million in annual gross benefits, with total charges estimated at $1,748 million.
rose 39.4% to $1,773 million and nearly doubled to $1,316 million, while fell 7.0% to $6,803 million.
What changed
Earlier filings flagged skin care as the key metric to watch; FY2026 skin care rose $842 million, confirming the recovery that began in Q1 FY2026 held through the year.
The $1,286 million in FY2025 brand charges did not recur in FY2026, removing the single largest drag on reported .
The restructuring program was expanded again during the year, from 5,800–7,000 position reductions targeted in FY2025 to about 10,000 by year-end, with annual gross benefits raised from $800M–$1,000M to roughly $1,200 million.
growth of 5% in FY2026 reversed the 8% decline in FY2025 and the 2% decline in FY2024, marking the first annual revenue increase since FY2022.
fell 7.0% to $6,803 million after rising in each of the prior three fiscal years, while cash and equivalents rose 19.8% to $3,498 million.
What to watch
FY2027 trajectory toward management's double-digit target as restructuring charges continue and tariff impacts materialize.
Realization of the roughly $1,200 million in annual gross benefits and 10,000 position reductions under the expanded restructuring program.
Skin care and fragrance growth in FY2027 to confirm the FY2026 recovery sustains without further Asia travel retail or mainland China resets.
Any new or intangible charges beyond the $1,286 million cumulative FY2025 charges, particularly for , , or .
Brands are tiered by : Large Brands (Estée Lauder, La Mer, M·A·C, Clinique, Jo Malone London, TOM FORD), Scaling Brands (The Ordinary, Le Labo, Bobbi Brown Cosmetics, Aveda), and Developing Brands (Too Faced, KILIAN PARIS, Dr.Jart+, and others).
In February 2025 the company launched '' and a 'One ELC' operating model built on One Team, One Culture, and One Operating Ecosystem to simplify the organization and speed decision-making.
Effective July 1, 2025, geographic reporting was reorganized into four regions: The Americas; Europe, the United Kingdom and Ireland and Emerging Markets (EUKEM); Asia/Pacific; and Mainland China as a separate region.
The Lauder family controls approximately 82% of the outstanding through Class A and Class B Common Stock as of August 12, 2026.
Key risks span intense beauty competition, shifting consumer trends, AI use, global operations, cybersecurity, and Lauder family control.
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Intense competition from multinationals and private-equity-backed indie brands, plus rapid shifts in consumer preferences and digital channels, could erode market share, especially in key markets like China and the U.S.
Declining U.S. department-store traffic and retail consolidation increase dependence on key retailers, whose strategy changes, bankruptcy, or termination could materially hurt the business.
The company's use of AI and machine learning carries risks of harmful content, bias, IP infringement, and heightened cybersecurity and data-privacy exposure, with an evolving regulatory landscape adding cost and uncertainty.
Global operations face foreign-exchange swings, tariffs, sanctions, geopolitical tensions, and supply-chain disruptions, including reliance on single or limited suppliers.
Cybersecurity incidents, including past unauthorized access, could disrupt operations, compromise sensitive data, and trigger regulatory and litigation costs.
The Lauder family holds about 82% of voting power through dual-class shares, and the company relies on NYSE '' exemptions from certain governance requirements.
The following table sets forth our principal owned and leased manufacturing, assembly, research and development (“R&D”) and distribution facilities, some of which include contiguous office space, as well as our principal executive offices, as of August 12, 2026. The leases expir…
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The following table sets forth our principal owned and leased manufacturing, assembly, research and development (“R&D”) and distribution facilities, some of which include contiguous office space, as well as our principal executive offices, as of August 12, 2026. The leases expire at various times through 2040 subject to certain renewal options.
The Americas EUKEM Asia/Pacific(1) Mainland China
Owned Leased Owned Leased Owned Leased Owned Leased
Manufacturing 2 2 4 — 1 — — —
R&D 1 3 — 1 — — — 1
Distribution — 6 — 3 1 — — 1
Manufacturing and R&D 1 — — — — — — —
Manufacturing and Assembly — 1 — — — — — —
Distribution and Manufacturing — — 1 — — — — —
Principal Executive Offices — 1 — — — — — —
Total 4 13 5 4 2 — — 2
(1) These properties are generally included in the geographic region in which they are located, with the exception of our owned Distribution facility relating to our travel retail business, which is reported within our Asia/Pacific region.
Certain of our manufacturing facilities are utilized primarily for the production of products relating to particular product categories: four for skin care and makeup; three for skin care; two for makeup; two for skin care and fragrance; and one for hair care. As demand changes, certain of our manufacturing facilities can produce products from categories other than their primary category.
We consider our properties to be generally in good condition and believe our facilities are adequate for our operations and provide sufficient capacity to meet anticipated requirements.
For a discussion of legal proceedings, see Item 8. Financial Statements and Supplementary Data – Note 16 – Commitments and Contingencies. 24 Table of Contents
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For a discussion of legal proceedings, see Item 8. Financial Statements and Supplementary Data – Note 16 – Commitments and Contingencies.
24
Table of Contents
FY2026 net sales rose 5% to $15.05B and operating income swung to $780M from a $785M loss, aided by lower impairments.
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Reported rose 5% to $15,049 million, driven by 2% volume, 2% favorable FX, and 1% pricing; skin care and fragrance led growth.
improved 150 to 75.5%, driven by supply-chain efficiencies and lower obsolescence, partly offset by inflation and tariffs.
swung to $780 million from a $785 million loss, helped by the absence of $1,286 million in prior-year and intangible impairments.
Skin care rose $842 million and fragrance rose $582 million, while makeup and hair care losses narrowed; all regions improved, led by The Americas and Asia/Pacific.
The is expected to cut about 10,000 positions and deliver roughly $1,200 million in annual gross benefits, with total charges estimated at $1,748 million.
rose to $1,773 million from $1,272 million; the company expects tariffs to adversely affect fiscal 2027 profitability and cash flows, potentially materially.
Quantitative and Qualitative Disclosures About Market Risk
The information required by this item is set forth in Item 7 of this Annual Report on Form 10-K under the caption Liquidity and Capital Resources – Market Risk and is incorporated herein by reference.
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The information required by this item is set forth in Item 7 of this Annual Report on Form 10-K under the caption Liquidity and Capital Resources – Market Risk and is incorporated herein by reference.