Estée Lauder Companies Inc. (EL), while reporting lower profit in its third quarter despite revenue growth, on Friday revised fiscal 2026 expectation while remaining cautious amid ongoing geopolitical and macroeconomic uncertainty.
Further, the firm has revised its restructuring expectations, now expecting to cut more jobs than announced earlier.
In pre-market activity, the shares were gaining around 12 percent to trade at $85.94.
The company now estimates a final net reduction in positions of 9,000 to 10,000, an increase from 5,800 to 7,000 announced earlier. Over 70 percent of the increase in job reduction will be in point-of-sale demonstration roles at select unproductive doors in its department store and freestanding store channels.
The company now projects restructuring and other charges totaling between $1.5 billion and $1.7 billion, before taxes, an increase from $1.2 billion and $1.6 billion expected earlier.
Looking ahead for fiscal 2026, Estée Lauder now expects earnings per share of $0.69 to $0.83, lower than previous estimate of earnings in a range of $0.98 to $1.22 per share.
Adjusted net earnings per share are now projected to range between $2.35 and $2.45, higher than prebvious view of $2.05 to $2.25 per share.
In fiscal 2025, the company reported a loss of $3.15 per share on a reported basis and adjusted earnings of $1.51 per share.
Further, adjusted operating margin is now projected to range between 10.7 percent to 11.0 percent, an expansion to approach 300 basis points.
Net sales growth is now projected at 4 percent, and organic net sales growth to be approximately 3 percent, at the high-end of its prior outlook range.
The company previously projected sales growth of 3 to 5 percent and organic net sales growth of 1 to 3 percent.
The Company continues to expect tariff-related headwinds to impact fiscal 2026 profitability by approximately $100 million.
Looking ahead to fiscal 2027, the firm said it is confident in improving trajectory, and expects to accelerate organic sales growth and for adjusted operating margin to approach 13 percent.
Further, the company announced a quarterly dividend of $0.35 per share, payable in cash on June 15 to stockholders of record at the close of business on May 29.
In the third quarter, Estée Lauder's net earnings totaled $89 million or $0.24 per share, down 45 percent from $159 million or $0.44 per share last year.
Adjusted earnings were $0.88 per share for the period, compared to $0.65 a year ago.
The company's net sales for the period rose 4.6 percent to $3.712 billion from $3.550 billion last year.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.