Investing.com -- The Estée Lauder Companies Inc. (NYSE: EL) reported first-quarter results that exceeded analyst expectations, driving shares up 5.2% premarket as the beauty company raised its full-year outlook.
The company posted adjusted earnings per share of $0.72 for the quarter ended September 30, beating the analyst consensus of $0.51 by $0.21. Revenue reached $3.72 billion, surpassing the $3.64 billion estimate and representing a 7% increase from $3.48 billion in the prior-year period.
Organic net sales grew 6% YoY. CEO Stéphane de La Faverie stated, "Our first quarter of fiscal 2027 marks another powerful step forward for The Estée Lauder Companies. Growth is accelerating, profitability is strengthening significantly, and the impact of Beauty Reimagined is becoming increasingly evident across our business."
The strong performance was driven by growth across nearly all product categories and geographic regions. Fragrance led with 20% organic growth, while Skin Care increased 4%. The company benefited from its Luxury Brands portfolio, including Le Labo, TOM FORD, and Jo Malone London, along with continued momentum from The Ordinary.
Adjusted operating margin expanded 480 basis points to 12.1% from 7.3%, reflecting operational efficiencies and sales leverage.
Estée Lauder raised its fiscal 2027 full-year guidance, now expecting organic net sales growth of 4.0% to 5.5%, up from the prior range of 3% to 5%. The midpoint of 4.75% exceeds the previous midpoint of 4%. Adjusted EPS guidance increased to $3.20 to $3.45 from $3.10 to $3.35, with the new midpoint of $3.33 above the prior $3.23. Adjusted operating margin is now expected between 12.9% to 13.7%, up from 12.7% to 13.5%.
The company declared a quarterly dividend of $0.35 per share, payable December 15, 2026.
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