Quarterly ResultMay 1, 2026, 12:07 PM
EL Q3 Net Sales $3.71B; YTD Net Earnings $298M; Restructuring Expanded
AI Summary
The Estée Lauder Companies Inc. reported mixed financial results for the third quarter and nine months ended March 31, 2026. While Q3 net sales increased by 4.6% to $3.71 billion, net earnings for the quarter decreased by 44% to $89 million. However, year-to-date net earnings showed a significant turnaround, reaching $298 million compared to a $(587) million loss in the prior year, with operating cash flows also increasing substantially. The company also announced an expansion of its restructuring program, now targeting 9,000 to 10,000 job reductions and increasing estimated charges to $1.5 billion-$1.7 billion.
Key Highlights
- Restructuring Program expanded to a net reduction of 9,000-10,000 positions globally.
- Total restructuring charges now estimated at $1,500M-$1,700M, an increase from previous estimates.
- Q3 Net Sales increased 4.6% to $3,712M from $3,550M year-over-year.
- Q3 Net Earnings decreased 44% to $89M from $159M year-over-year.
- Nine-month Net Earnings significantly improved to $298M from a $(587)M loss year-over-year.
- Nine-month Operating Cash Flows increased 78.4% to $1,197M from $671M year-over-year.
- Effective tax rate for Q3 2026 rose to 50.3% from 34.0% due to the "One Big Beautiful Bill Act".
- Current debt increased to $502M from $3M at June 30, 2025.