Estée Lauder's net sales for Q2 of fiscal year 2026 increased by 6%

K-LinePoet · 2026-02-06T14:21:05+00:00

Estée Lauder Companies released its Q2 FY2026 financial report, with net sales increasing by 6% to $4.2 billion and organic net sales growing by 4%. Adjusted gross margin improved to 76.5%, and operating profit margin significantly increased to 9.5%. These achievements are driven by profit recovery and growth plans that enhanced operational efficiency and optimized expenses, despite challenges from inflation and incremental tariffs.

K-LinePoet

2026-02-06 14:21:05

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Beijing Business Daily (Reporter Zhang Junhua) reported on February 6 that Estée Lauder Companies announced its second quarter fiscal year 2026 financial results, achieving a 6% increase in net sales to $4.2 billion; organic net sales grew by 4%. During the reporting period, Estée Lauder’s adjusted gross margin increased by 40 basis points, from 76.1% to 76.5%. This was mainly due to the net benefits from the Profit Recovery and Growth Plan (PRGP), which significantly offset the impacts of increased tariffs, changes in business structure, and inflation factors. The benefits of the PRGP stem from improved operational efficiency, including more competitive procurement strategies, cost optimization, and reductions in excess and slow-moving inventory. Additionally, during the reporting period, Estée Lauder’s operating profit margin was 9.5%, a significant improvement from -14.5% in the same period last year. The adjusted operating profit margin expanded by 290 basis points, from 11.5% to 14.4%, mainly due to the net benefits from the PRGP. Although employee incentive costs returned to normal levels, this net benefit effectively reduced non-consumer-facing expenses and provided funding for increased investment in consumer-facing initiatives.

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