Estée Lauder CEO Stéphane de La Faverie stated the company achieved a "great quarter" and has "great momentum" heading into fiscal 2027. He highlighted that the company has delivered on its promises since he took over at the start of 2025, reigniting growth, accelerating innovation, significantly expanding margins, and investing in consumer acquisition and brands. The company reported four consecutive quarters of growth, with the strongest quarter being the last at over 5% organic growth.
De La Faverie acknowledged that some investors still have concerns about future momentum, particularly regarding the full-year guidance of 3% to 5% organic sales growth for fiscal 2027, noting that the lower end of this range might not be perceived as an acceleration. Despite these concerns, he affirmed confidence in accelerating organic sales growth for fiscal 2027 and raised the outlook for an even stronger adjusted operating margin.
The company's fiscal 2026 results exceeded initial expectations, with organic sales rising 3% for the full year, driven by broad growth across brands and significant operating margin expansion. Estée Lauder ended the year on a high note with accelerating organic sales growth of 5% in the fourth quarter and stronger profitability. The CEO emphasized that the company has a clear playbook, strong brands, and a capable team ready to accelerate in the upcoming fiscal year, reinforcing the success of the "Beauty Reimagined" strategy and the "One ELC" operating model.
