Estee Lauder Q1 2027: Margins Expand as China and Fragrance Return to Growth
As seen on the 24/7 Wall St. homepage on November 2, 2026.
Estee Lauder's turnaround is now showing up in margins: adjusted operating margin expanded 480 basis points to 12.1%. Fragrance growth and mainland China's return to growth are the two things bears said would take years.
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Estee Lauder posted adjusted EPS of $0.72 for its fiscal first quarter of 2027, beating expectations and extending its streak of EPS beats to five consecutive quarters.
Adjusted operating margin expanded 480 basis points to 12.1% on procurement savings, manufacturing efficiencies, and strategic pricing under the Profit Recovery and Growth Plan.
Fragrance organic sales rose 20%, led by Le Labo, TOM FORD, Jo Malone London, and KILIAN PARIS, while Mainland China organic sales rose 9% and Asia Pacific grew 10% on travel retail recovery.
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Management raised its full-year fiscal 2027 adjusted EPS outlook to $3.20 to $3.45 and lifted its organic sales growth target to 4.0% to 5.5%.
Management flagged tariff, currency, and Aveda supply chain risks, with free cash flow still negative at $235 million for the quarter.
Mentioned: EL