Estée Lauder (EL) Q2 2026 Earnings Call Transcript

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Thu, February 5, 2026 astatine 9:17 AM CST 48 min read

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Thursday, Feb. 5, 2026 astatine 8:30 a.m. ET

• President and Chief Executive Officer — Stephane de La Faverie

• Executive Vice President and Chief Financial Officer — Akhil Shrivastava

Stephane de La Fabri: Thank you, Rainey. Hello to everyone today. We reported beardown 2nd 4th results, marked the one-year day of Beauty Reimagine, and raised our fiscal 2026 outlook. Our 2nd 4th show further exemplifies the momentum we person created crossed our 5 enactment program priorities, having delivered 4% integrated income growth. Our maturation and operating borderline expanded, and EPS grew 43%, showcasing erstwhile again our quality to negociate expenses. For the archetypal year, we made promises we kept promises arsenic we expanded user sum crossed online and ceramic and mortar successful each region, overhauled our innovation motor with caller enactment faster to marketplace launches, and a renewed consumer-first mindset.

Increase consumer-facing investment, each 4th to accelerate recruitment enabled by important redeeming from the PRGP. And created 1 ELC, 1 caller operating model, aligning brands, regions, and relation arsenic 1 squad with 1 civilization and 1 operating ecosystem. When we introduced Beauty Reimagine, our ambition was bold, execute the biggest operational leadership, and taste translation successful our history, to go the champion consumer-centric prestige quality company. Thanks to the passion, creativity, and resilience of our squad astir the world, we person travel acold successful 1 year. Yes. There is much enactment to do, but overmuch has been accomplished.

In 2026, our planetary retail income inclination improved from the archetypal to the 2nd quarter, from down 4% to level arsenic the diminution successful question moderated. Even much encouraging, our retail income grew 4% successful the archetypal fractional excluding question retail. In Mainland China, we outperformed Prestige Beauty successful the 4th again with double-digit growth. We gained stock for the 4th and calendar twelvemonth 2025, led by Lambert and Tom Ford, showcasing the beardown desirability of our brands compared to planetary and section peers. In Hainan, our retail income grew precocious single-digit successful the 4th led by Estee Lauder and La Mer. In Japan, we outperformed Prestige Beauty successful the 4th driven by MAC and Le Labo.

For calendar 2025, we gained stock successful France, strengthening our fig 1 class rank. In The US, for the 4th and calendar 2025, we gained measurement stock successful full prestige beauty. We besides grew worth stock for the 4th and calendar 2025 successful skincare led by The Ordinary. And hairsbreadth care. In addition, Estee Lauder gained stock successful constitution for calendar 2025. These retail results and stock inclination bespeak the exceptional execution of quality reimagined implicit the past year. For our archetypal enactment program priority, we moved rapidly to our portfolio beingness successful consumer-preferred, high-growth channels, market, media, and terms tiers. We expanded our beingness connected Amazon premium quality stores present with 12 brands crossed 10 markets.