Estée Lauder (EL) announced its fiscal year 2030 targets on November 4, 2026, at an investor event in Shanghai. The company projects an adjusted operating margin (non-GAAP, excluding items the company considers non-recurring) of 16.5% to 18.5% in fiscal year 2030. It also expects mid-single-digit annual organic net sales growth and double-digit growth in adjusted diluted earnings per share (EPS) through fiscal year 2030.
The company says the adjusted operating margin was 11.2% in fiscal year 2026, compared with 8.0% in fiscal year 2025. The largest margin expansion is expected in fiscal year 2028, with the full benefit of the Profit Recovery and Growth Plan (PRGP), whose approved initiatives will be completed by fiscal year 2027. The company also expects to reduce non-consumer-facing expenses and maintain consumer-facing investments.
The company projects that the adjusted effective tax rate will reach 30% or less by fiscal year 2030, compared with 35.7% in fiscal year 2026. By then, it expects higher profit, lower restructuring payments and better working capital management, which should increase operating cash flow and free cash flow. For fiscal year 2028, it forecasts restructuring charges of US$ 40 mi to US$ 50 mi before taxes, excluded from adjusted metrics.
Estée Lauder also raised its outlook for fiscal year 2027: reported sales growth of 5.0% to 6.5% (previously 3% to 5%) and organic sales growth of 4.0% to 5.5% (previously 3% to 5%). The adjusted operating margin is expected to be between 12.9% and 13.7% (previously 12.7% to 13.5%), and adjusted diluted EPS is expected to grow 28% to 38% (previously 24% to 34%). In the first fiscal quarter of 2027, reported sales rose 7%, organic sales rose 6% and adjusted diluted EPS rose 125%.
