Estee Lauder Cos Affirms FY2026 Adj EPS Guidance of $1.90-$2.10 vs $2.06 Est; Affirms FY2026 Sales Guidance of $14.613B-$15.042B vs $14.761B Est

Author: Benzinga Newsdesk | October 30, 2025 05:05am

OUTLOOK FOR FISCAL 2026 FULL YEAR 

The Company reaffirms its fiscal 2026 full-year outlook.

The Company continues to closely monitor evolving trade policies and enacted tariffs, and its task force has been actively evaluating developments and mitigation strategies to reduce the potential impacts of tariffs. The Company has implemented a range of actions, including leveraging available trade programs and further optimizing its regional manufacturing footprint to bring production closer to the consumer—including through its facility in Japan. These efforts, combined with increased supply chain agility, are helping to offset more than half of the expected impacts and better position the Company to adapt quickly as trade policies continue to evolve.

In terms of enacted tariffs, the Company's assumption reflects the following incremental rates on its most material flow of goods:

• For U.S. imports: (i) from Switzerland a 39% rate, (ii) from Canada a 35% rate, (iii) from China a 30% rate, (iv) from Mexico a 25% rate, (v) from both the European Union and Japan a 15% rate and (vi) from the U.K. a 10% rate
• For Canada imports from the U.S., a 25% rate
• For China imports from the U.S., a 10% rate

Based on information available and net of planned mitigation actions through October 24, 2025, the Company continues to expect tariff-related headwinds to impact fiscal 2026 profitability by approximately $100 million. This assumption does not reflect any subsequent or future changes. The Company continues to evaluate additional strategies, including further PRGP initiatives and potential pricing actions.

See the Company's fiscal 2025 fourth quarter Earnings Press Release for other full-year assumptions underlying its fiscal 2026 outlook.

Reconciliation between GAAP and Non-GAAP - Net Sales Growth  (Unaudited)
	Twelve Months Ending
	June 30, 2026(F)
As Reported - GAAP	2% - 5	%
Impact of foreign currency translation	2
Returns associated with restructuring and other activities(1)	—
Organic, Non-GAAP	0% - 3	%
(F)Represents forecast, using spot rates as of September 30, 2025.
(1)The net sales growth impact of returns associated with restructuring and other activities includes approvals to date. Additional returns associated with restructuring and other activities are anticipated as initiatives are approved in fiscal 2026.

Reconciliation between GAAP and Non-GAAP - Diluted Net Earnings (Loss) Per Common Share ("EPS")  (Unaudited)
	Twelve Months Ending
	June 30
	2026(F)		2025			Growth
Forecasted/As Reported EPS - GAAP	$1.39 - $1.65	$	(3.15	)	100+	%
Non-GAAP
Restructuring and other charges(1)	.45 - .51		1.06
Goodwill and other intangible asset impairments	—			2.78
U.S. deferred tax asset valuation allowance adjustment	—			.48
Talcum litigation settlement agreements(2)	—			.34
Forecasted/Adjusted EPS - Non-GAAP	$1.90 - $2.10	$	1.51		26% - 39	%
Impact of foreign currency translation	(.03	)
Forecasted/Adjusted Constant Currency EPS - Non-GAAP	$1.87 - $2.07	$	1.51		24% - 37	%

Posted In: EL