Estée Lauder has warned that new and higher tariffs will shave about $100 million off its profits this year.
Estée Lauder's latest forecast wasn't a winning look.
Estee Lauder delivered a Q2 earnings beat but issued a cautious outlook, triggering a double-digit share price drop. EL's recovery is underway, with margin expansion and strong China growth, yet organic growth remains sub-4% and U.S. sales are flat. Restructuring is progressing, yielding cost savings and improved free cash flow, but near-term capital returns are unlikely until completion.
EL beats fiscal second-quarter earnings and sales estimates as Beauty Reimagined gains traction, lifting fiscal 2026 guidance.
The Estée Lauder Companies Inc. (EL) Q2 2026 Earnings Call Transcript
Estée Lauder said in its second-quarter earnings report that it's expecting its full-year profitability to take a $100 million hit from tariff impacts. The company said its weighing additional strategies to offset costs, including "potential pricing actions.
While the top- and bottom-line numbers for Estee Lauder (EL) give a sense of how the business performed in the quarter ended December 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Estee Lauder (EL) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.84 per share. This compares to earnings of $0.62 per share a year ago.
Estee Lauder lifted its adjusted earnings outlook for the year but continues to expect tariff-related headwinds to hurt its profit by about $100 million, mostly in the second half.
Beyond analysts' top-and-bottom-line estimates for Estee Lauder (EL), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended December 2025.
EL's second-quarter results are likely to reflect stronger retail trends and margin expansion, despite ongoing challenges in certain markets.
Estee Lauder (EL) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.