EL
Updated: 24/09/2026, 21:57:19
The Estée Lauder Companies Inc. is a global entity dedicated to the development, marketing, and sale of a diverse range of premium beauty and personal care items worldwide. Its extensive product catalog encompasses numerous offerings across four primary categories. For skin care, it provides moisturizers, serums, cleansers, toners, body treatments, exfoliants, acne and oil control solutions, facial masks, specialized cleansing devices, and sun protection. In makeup, consumers can find lipsticks, glosses, mascaras, foundations, eyeshadows, nail polishes, powders, compacts, brushes, and various other cosmetic tools. The fragrance segment includes eau de parfum sprays, colognes, scented lotions, powders, creams, candles, and soaps. Lastly, its hair care selection features shampoos, conditioners, styling aids, treatments, finishing sprays, and hair color products. Beyond these, the company also offers ancillary products and services. Estée Lauder boasts an impressive portfolio of owned brands, such as Clinique, M·A·C, Aveda, La Mer, Jo Malone London, and The Ordinary, among many others. Furthermore, it operates under license agreements for notable fashion labels including Tommy Hilfiger and Michael Kors. These products are distributed globally through a broad network of retail channels, comprising high-end department stores, specialty multi-brand retailers, luxury perfumeries and pharmacies, salons and spas, exclusive freestanding stores, its own and authorized online platforms, major third-party e-commerce sites, airport retail locations, and in-flight and duty-free concessions. Established in 1946, the company maintains its corporate headquarters in New York, New York.
No summaries found.
Reported and calculated KPIs plus operational exposure disclosed in the FY 2026 filing.
Revenue
$15.0B
FY 2026 · Reported
Net income
$0.2B
FY 2026 · Reported
Gross margin
75.5%
FY 2026 · Calculated
Free cash flow
$1.3B
FY 2026 · Calculated
R&D intensity
N/A
FY — · Reported
Share repurchases
$0.1B
FY 2026 · Reported
| Product / service | Sales | Share of sales | YoY growth | By reported area |
|---|---|---|---|---|
Skin CareSource evidence“Balance as of June 30, 2026 Goodwill1,543 1,116 271 353 3,283 Accumulated impairments(401)(745)(30)— (1,176) Total goodwill $1,142 $371 $241 $353 $2,107” | $1,142m | +54.2% | N/A | Not disclosed by product and area |
MakeupSource evidence“Balance as of June 30, 2026 Goodwill1,543 1,116 271 353 3,283 Accumulated impairments(401)(745)(30)— (1,176) Total goodwill $1,142 $371 $241 $353 $2,107” | $371m | +17.6% | N/A | Not disclosed by product and area |
Hair CareSource evidence“Balance as of June 30, 2026 Goodwill1,543 1,116 271 353 3,283 Accumulated impairments(401)(745)(30)— (1,176) Total goodwill $1,142 $371 $241 $353 $2,107” | $353m | +16.8% | N/A | Not disclosed by product and area |
FragranceSource evidence“Balance as of June 30, 2026 Goodwill1,543 1,116 271 353 3,283 Accumulated impairments(401)(745)(30)— (1,176) Total goodwill $1,142 $371 $241 $353 $2,107” | $241m | +11.4% | N/A | Not disclosed by product and area |
Other offerings mentioned without separate sales
Area-level product sales are displayed only when the filing reports a product × geography breakdown. Regional totals are not allocated across products by estimation.
Map layer
Pins show disclosed operations. The heatmap colors the filing’s reported geographies; regional figures shade the region and are not estimates for each country.
Only locations and quantities explicitly supported by the filing are displayed. A country-level manufacturing percentage or product allocation is shown only when the source discloses it; materiality scores are never presented as production shares.
Company overview
Estée Lauder Companies: prestige beauty across skin care, makeup, fragrance, hair care; 20+ brands; ~150 countries; wholesale and DTC channels.
“one of the world’s leading manufacturers, marketers and sellers of quality skin care, makeup, fragrance and hair care products. We are a steward of over 20 luxury and prestige brands globally.”
Core product categories
Prestige beauty company selling skin care, makeup, fragrance and hair care products through department stores and other channels globally.
“changes in consumer preferences for skin care, makeup, fragrance and hair care products”
Operating segments are four product categories
Skin care, makeup, fragrance and hair care product categories are the Company's operating segments
“The skin care, makeup, fragrance and hair care product categories are the Company's operating segments.”
Brand tiering by net sales
Large Brands (≥$1B sales): Estée Lauder, La Mer, M·A·C, Clinique, Jo Malone London, TOM FORD; Scaling ($400M-$1B): The Ordinary, Le Labo, Bobbi Brown, Aveda.
“Our “Large Brands”, defined as brands that have net sales of $1,000 million or more, are Estée Lauder, La Mer, M·A·C, Clinique, Jo Malone London and TOM FORD.”
Distribution channels
Wholesale via department stores, duty-free, specialty-multi, online pure players, perfumeries/pharmacies, salons/spas; DTC via freestanding stores, brand sites, third-party platforms.
“our products sold in brick-and-mortar locations and on various e-commerce platforms, including those operated by department stores, duty-free retailers, specialty-multi retailers, online pure players, upscale perfumeries and pharmacies, and top-tier salons and spas”
Credit extended to retailers
Company generally extends credit to retailers based on evaluation of financial condition; retailer financial weakness is a disclosed risk.
“We generally extend credit to a retailer based on an evaluation of its financial condition”
Product categories
Skin Care, Makeup, Fragrance, Hair Care, plus Other (TOM FORD licensing royalties).
“These products include moisturizers, serums, cleansers, toners, eye care, body care, exfoliators, acne and oil correctors, facial masks and sun care products.”
Net sales by product category and region FY2024-2026
FY2026 net sales $15,049M: Skin Care $7,338M; Makeup $4,276M; Fragrance $2,779M; Hair Care $565M. Regions: Americas $4,463M; EUKEM $3,794M; Asia/Pacific $3,746M; Mainland China $3,058M.
“Skin Care$7,338 $6,962 $7,908”
Operating income (loss) by product category and region FY2024-2026
FY2026 operating income $780M (recovered from $(785)M loss in FY2025); Skin Care $1,416M; Asia/Pacific $823M; Mainland China $373M; Makeup $(70)M.
“Operating income (loss)$780 $(785)$970”
Goodwill by product category as of June 30, 2026
Goodwill: Skin Care $1,142M, Makeup $371M, Fragrance $241M, Hair Care $353M, Total $2,107M (June 30, 2026)
“Balance as of June 30, 2026 Goodwill1,543 1,116 271 353 3,283 Accumulated impairments(401)(745)(30)— (1,176) Total goodwill $1,142 $371 $241 $353 $2,107”
Loss on undesignated foreign currency forward contracts
Loss of $(8)M in FY2026 and $(22)M in FY2025 on foreign currency forward contracts not designated as hedging instruments, recognized in SG&A
“Foreign currency forward contractsSelling, general and administrative$(8)$(22)”
DECIEM and pending Forest Essentials acquisition; minority investments
Fully acquired DECIEM in 2024; agreement to acquire remaining interest in Forest Essentials (India), subject to regulatory approvals; New Incubation Ventures makes minority beauty investments.
“we have signed an agreement, subject to regulatory approvals, to acquire the remaining interest”
Impairment triggers: weakness in mainland China, Asia travel retail, Hong Kong SAR, Korea
Lower-than-expected growth in mainland China, Asia travel retail and Hong Kong SAR (TOM FORD); mainland China and Korea (Dr.Jart+)
“the TOM FORD brand experienced lower-than-expected growth within key geographic regions and channels, including in mainland China, Asia travel retail and Hong Kong SAR.”
Market positions and brand differentiators
M·A·C is the leading prestige makeup brand globally; La Mer a leading global luxury skin care brand; luxury portfolio spans 8 brands plus Re-Nutriv.
“M·A·C, the leading prestige makeup brand globally, was created in Toronto, Canada.”
Beauty Reimagined strategic vision
"Beauty Reimagined" (Feb 2025): consumer coverage, transformative innovation, consumer-facing investment, bold efficiencies, new way of work via One ELC operating model.
“In February 2025, we embarked on “Beauty Reimagined,” a strategic vision which focuses on accelerating best-in-class consumer coverage, creating transformative innovation, boosting consumer-facing investments, fueling sustainable growth through bold efficiencies and reimagining the way we work.”
Dr.Jart+ exited travel retail channel; increased direct investment including mainland China
Dr.Jart+ decided to exit the travel retail channel with a revised strategy including increased direct investment in mainland China
“a decision was made in the prior year in the reporting unit’s operating plan to exit the travel retail channel. A revised strategy was implemented that included increased direct investment in other areas of the business, including in mainland China”
Long-term strategy investment areas
Long-term strategy requires investment in new capabilities, brands, categories, channels, supply chain, AI/data analytics and geographic markets; may be dilutive short-term. Also includes potential divestitures of certain brands.
“Achieving our long-term strategy will require investment in new capabilities, brands, categories, distribution channels, supply chain facilities, technologies, including AI and data analytics, and emerging and more mature geographic markets.”
Recurring fair value hierarchy of financial assets and liabilities (June 30, 2026 vs 2025)
2026: assets $1,509M money market funds (L1), $40M FX forwards, $34M cross-currency swaps (L2), total $1,583M; liabilities $47M FX forwards, $118M interest rate contracts, $1M cross-currency swaps, total $166M. 2025: assets total $809M; liabilities total $216M
“Money market funds$1,509 $— $— $1,509 Foreign currency forward contracts— 40 — 40”
Fair value of current and long-term debt below carrying amount
Current and long-term debt carrying amount $7,306M vs fair value $6,814M (2026); $7,317M vs $6,794M (2025)
“Current and long-term debt$7,306 $6,814 $7,317 $6,794”
Derivative liabilities netted under master netting agreements
Derivative assets $74M gross ($34M net) and liabilities $(166)M gross ($(126)M net) as of June 30, 2026; total derivatives $(92)M vs $(134)M in 2025
“Derivative assets$74 $(40)$34 $82 $(60)$22 Derivative liabilities(166)40 (126)(216)60 (156)”
Notes payable and deferred consideration composition
Notes payable and deferred consideration $123M carrying (2026), primarily vendor deferred service payments; $322M (2025) primarily TOM FORD acquisition deferred payments, paid in fiscal 2026 Q1 and Q3
“as of June 30, 2026 consist primarily of obligations to a vendor related to deferred service payments, and as of June 30, 2025 consist primarily of deferred payments associated with the fiscal 2023 acquisition of TOM FORD, which was paid during the fiscal 2026 first and third quarters.”
Cross-currency swap fair value hedge gain on hedged item and derivative
FY2026 loss on fair value hedge of cross-currency swap contracts: hedged item $(44)M offset by $44M gain on designated derivatives
“Hedged itemN/A(44)N/A Derivatives designated as hedging instrumentsN/A44 N/A”
Governance/control structure
Lauder family controls ~82% of outstanding voting power as of August 12, 2026.
“beneficially own, directly or indirectly, as of August 12, 2026, shares of our Company's Class A Common Stock and Class B Common Stock having approximately 82% of the outstanding voting power of the Common Stock.”
Outlook: key market challenges and tariff impact
Challenges in West, Beijing/Shanghai duty-free changes, Middle East (~2% of FY2025 net sales); tariffs expected to adversely affect FY2027 profitability and cash flows, possibly materially.
“We anticipate tariffs to have an adverse effect on fiscal 2027 profitability and cash flows, and depending on actual rates and countries imposing tariffs such adverse impacts could be material.”
Fiscal 2025 brand impairment charges
FY2025 impairments: TOM FORD trademark $773M; Too Faced trademark $125M and goodwill $13M; Dr.Jart+ trademark $83M and customer list $292M
“recorded an impairment charge of $773 million for TOM FORD and $75 million for Too Faced... an impairment charge of $83 million for Dr.Jart+ and $50 million for Too Faced... the calculated impairment charge to be allocated to the long-lived assets of Dr.Jart+ was $292 million.”
Estimated aggregate intangible amortization expense FY2027-FY2031
Estimated amortization: FY2027 $86M, FY2028 $69M, FY2029 $67M, FY2030 $65M, FY2031 $48M
“Estimated aggregate amortization expense$86 $69 $67 $65 $48”
Other intangible assets net at June 30, 2026 and 2025
Other intangibles net: $3,579M (2026) vs $3,759M (2025); trademarks $3,081M, customer lists and other $498M in 2026
“Total other intangible assets, net $3,579 $3,759”
Cumulative goodwill impairments by category
Accumulated goodwill impairments: Skin Care $401M, Makeup $745M, Fragrance $30M, Total $1,176M
“Accumulated impairments(401)(745)(30)— (1,176)”
Too Faced goodwill fully impaired; remaining carrying values as of June 30, 2025
Too Faced goodwill reduced to zero; remaining June 30, 2025: TOM FORD trademark $1,805M, Too Faced trademark $50M, Dr.Jart+ trademark $42M and customer list $189M
“TOM FORDThe Americas$— $— $— $773 $— $— $1,805 $— $— Too FacedThe Americas50 — — 125 — 13 62 50 —”
IEEPA tariff refunds
Submitted IEEPA tariff refund claims in Q4 FY2026; refunds recorded as offset to cost of sales; remainder not material.
“During the fiscal 2026 fourth quarter, we submitted claims for a portion of our eligible IEEPA tariffs paid, and have begun to receive refunds.”
Restructuring-related accelerated depreciation under Profit Recovery and Growth Plan
Accelerated D&A from the Profit Recovery and Growth Plan restructuring is recorded in Restructuring and other charges
“accelerated depreciation and amortization related to the restructuring component of the Profit Recovery and Growth Plan is included in Restructuring and other charges”
Foreign currency exposure
Majority of net sales generated outside the U.S.; FX fluctuations affect results of operations.
“We operate on a global basis, with the majority of our net sales generated outside the United States. Accordingly, fluctuations in foreign currency exchange rates can affect our results of operations.”
AI usage risks
Company uses AI including machine learning and generative AI; risks include hallucinations, bias, IP infringement and heightened cybersecurity/data privacy risks, plus evolving AI regulation costs.
“We are using AI solutions, including machine learning and generative AI tools, to assist in the development of our products, engage with consumers, and in the use of internal tools that support our business.”
Intense competition in beauty industry
Faces vigorous global competition including from indie brands; competition based on pricing, innovation, advertising, e-commerce and AI/data analytics capabilities.
“We face vigorous competition from companies throughout the world, including multinational consumer product companies. Some competitors have greater resources than we do, others are newer companies (such as Indie Brands, some of which are backed by private-equity investors)”
Retail consolidation and destocking risk
Forward-looking factors include retail consolidation causing fewer stores, ownership overlaps with competitors, receivables collection risk, and retailer destocking.
“destocking and tighter working capital management by retailers”
Key country competition exposure: China and US
Inability to compete effectively in key countries such as China or the United States could have a material adverse effect.
“Our inability to continue to compete effectively in key countries around the world (e.g., China or the United States) could have a material adverse effect on our business.”
Discretionary consumer spending sensitivity
Products are discretionary; consumer purchases of discretionary items tend to decline during recessions, also affecting retail customers' financial strength.
“Many of our products may be considered discretionary items for consumers, and consumer purchases of discretionary items tend to decline during recessionary periods”
Goodwill and intangible impairment risk
Acquisitions add goodwill/intangibles; impairments have been recorded and future impairment amounts and timing cannot be predicted.
“We are required at least annually, or as facts and circumstances exist, to test goodwill and other intangible assets with indefinite lives to determine if impairment has occurred”
Reputation and social media risk
Strong reputation is critical; could be harmed by social media and by ineffective or unethical use of AI, impacting ability to attract customers and employees.
“Our reputation could be negatively impacted by social media and many other factors, including, given the legal, regulatory and ethical landscape around the use of AI, our ability to adapt and use the emerging technology in an effective and ethical manner.”
Retail traffic decline and customer concentration
Longer-term decline in US department store retail traffic; retail consolidation may increase dependence on key retailers and customer concentration risk.
“In certain key markets, such as the United States, we have seen a longer-term decline in retail traffic in our department store customers.”
Foreign currency and global conditions exposure
FX fluctuations affect operations, competitor pricing and manufacturing costs; global conditions including inflation, supply chain challenges, energy costs and commodity pricing could affect consumer purchasing and inputs.
“foreign currency fluctuations affecting our results of operations and the value of our foreign assets, the relative prices at which we and our foreign competitors sell products in the same markets and our operating and manufacturing costs outside of the United States”
ESG/social impact execution risk
Risk of failing or being perceived to fail on announced ESG initiatives and goals across climate, packaging, sourcing, formulation and inclusion.
“We announce certain initiatives, including goals and commitments, regarding our focus areas, including environmental and climate matters; packaging; sourcing; product formulation; social investments; and inclusion.”
Mainland China is separately reported with $3,058M net sales and $373M operating income in FY2026, a major growth and profit region; travel retail (reported in Asia/Pacific) is also tied to Chinese travel hubs.
“Mainland China3,058 2,741 2,904”
Lower-than-expected growth in mainland China was a key trigger for TOM FORD and Dr.Jart+ impairments; Dr.Jart+ strategy includes increased direct investment in mainland China.
“including in mainland China, Asia travel retail and Hong Kong SAR”
Skin Care is an operating segment and carries the largest goodwill balance ($1,142M net) after impairments.
“The skin care, makeup, fragrance and hair care product categories are the Company's operating segments.”
Products are discretionary items; purchases decline in recessions driven by economic conditions, inflation, interest rates, energy costs and confidence.
“consumer purchases of discretionary items tend to decline during recessionary periods, when disposable income is lower, and may impact sales of our products”
Asia travel retail weakness triggered the TOM FORD impairment; Dr.Jart+ exited the travel retail channel under a revised strategy.
“the TOM FORD brand experienced lower-than-expected growth within key geographic regions and channels, including in mainland China, Asia travel retail and Hong Kong SAR”
US is cited as a key competitive market; department store traffic decline is concentrated there.
“Our inability to continue to compete effectively in key countries around the world (e.g., China or the United States) could have a material adverse effect on our business.”
Inability to compete effectively in key countries such as China could have a material adverse effect on the business.
“Our inability to continue to compete effectively in key countries around the world (e.g., China or the United States) could have a material adverse effect on our business.”
Long-term decline in US department store retail traffic and retail consolidation could concentrate customer risk and adversely affect sales.
“In certain key markets, such as the United States, we have seen a longer-term decline in retail traffic in our department store customers.”
TOM FORD trademark impaired by $773 million in fiscal 2025 due to lower-than-expected growth and higher WACC.
“recorded an impairment charge of $773 million for TOM FORD”
Beauty business changes rapidly due to consumer preferences and industry trends, amplified by digital and social media; failure to respond adversely affects business.
“The beauty business can change rapidly due to consumer preferences and industry trends.”
AI increasingly important for product development, consumer engagement and internal tools; misuse risks plus competitors adopting AI faster could hinder competitiveness.
“Our competitors or other third parties may incorporate AI into their business, services, and products more rapidly or more successfully than us, which could hinder our ability to compete effectively and adversely affect our business.”
Dr.Jart+ trademark ($83M) and customer list ($292M) impaired in fiscal 2025 on mainland China and Korea weakness.
“recorded an impairment charge of $83 million for Dr.Jart+ and $50 million for Too Faced”
FX fluctuations affect reported results, foreign asset values, relative pricing versus foreign competitors and non-US manufacturing costs.
“foreign currency fluctuations affecting our results of operations and the value of our foreign assets, the relative prices at which we and our foreign competitors sell products in the same markets and our operating and manufacturing costs outside of the United States”
Inflation and increased energy costs affect consumer purchasing power, supplier/counterparty financial strength, raw material cost and availability, and production costs.
“supply chain challenges, inflation, or increased energy costs, that could affect consumer purchasing”
Lower-than-expected growth in Korea contributed to Dr.Jart+ forecast revisions and impairment testing as of April 1, 2025.
“given the lower-than-expected growth within key geographic regions in fiscal 2025, specifically within mainland China and Korea”
The company uses interest rate contracts (fair value $118M liability at FY2026) and values them with SOFR and treasury yield curve inputs, indicating exposure to interest rate movements on its ~$7.3B debt load.
“Interest rate contracts — 118 — 118”
Increases in WACC (11.5%-14%) contributed to triggering and sizing of trademark and goodwill impairments.
“Additionally, there were increases in the weighted average cost of capital for both the TOM FORD brand and Too Faced reporting unit as compared to the prior-year annual goodwill and other indefinite-lived intangible asset impairment testing”
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