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Estée Lauder raised its full-year sales and adjusted earnings forecasts on Monday, November 2, after reporting a 7% increase in first-quarter net sales to $3.715 billion. The company said in its fiscal 2027 first-quarter results release that organic net sales grew 6% in the three months ended September 30, 2026.
Diluted earnings per share under generally accepted accounting principles (GAAP) rose to $0.64 from $0.13 a year earlier. Adjusted diluted earnings per share, a non-GAAP measure, increased to $0.72 from $0.32.
The company now expects fiscal 2027 organic net sales growth of 4% to 5.5%, up from its previous range of 3% to 5%. It raised its adjusted diluted earnings forecast to $3.20 to $3.45 per share from $3.10 to $3.35.
Estée Lauder also raised its full-year adjusted operating margin forecast to 12.9% to 13.7%, from 12.7% to 13.5%. The updated outlook follows first-quarter GAAP operating income of $408 million, compared with $169 million a year earlier. Adjusted operating income was $449 million, up from $255 million.
The company attributed the improvement in profitability to sales growth, pricing and savings under its Profit Recovery and Growth Plan. It said these benefits helped offset inflation while funding additional spending aimed at consumers.
Estée Lauder will discuss the results on an earnings call at 8:30 a.m. Eastern time on Monday. Its organic sales and adjusted earnings and margin figures are non-GAAP measures, separate from its reported GAAP results.
JBizNews Desk | New York
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