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Estee Lauder Gears Up to Report Q1 Earnings: What's in the Offing?
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Key Takeaways
EL's Q1 revenues are projected to rise 4.8% to $3.65 billion, with EPS expected to surge 62.5% to 52 cents.
Skin care and fragrance strength, China demand and digital expansion may support Estee Lauder's Q1 sales.
EL's Beauty Reimagined strategy and cost-saving initiatives could boost efficiency despite tariff pressures.
The Estee Lauder Companies Inc. (EL - Free Report) is likely to register growth in both top and bottom lines when it reports first-quarter fiscal 2027 earnings on Nov. 2, 2026. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $3.65 billion, indicating 4.8% growth from the same period last year.
The consensus mark for earnings has risen a penny over the past 30 days to 52 cents per share, implying a 62.5% increase from the 32 cents reported in the year-ago quarter.
In the last reported quarter, the leading manufacturers and marketers of skin care, makeup, fragrance and hair care products company’s earnings beat the Zacks Consensus Estimate by 21.9%. Estee Lauder delivered a trailing four-quarter average earnings surprise of 41.4%.
Factors Likely to Impact EL’s Q1 Results
The Estée Lauder Companies’ first-quarter performance is likely to have benefited from continued momentum in its Skin Care and Fragrance businesses, supported by strong brand appeal and an accelerated innovation pipeline. In Skin Care, established brands such as La Mer, Estée Lauder and The Ordinary are expected to have remained key growth drivers, benefiting from sustained demand for hero products and new launches. Innovations across Clinique, The Ordinary and Estée Lauder, particularly in advanced skin care and emerging ingredient trends, may have helped attract consumers. Meanwhile, Fragrance is likely to have maintained its growth momentum, supported by luxury brands such as Le Labo, TOM FORD, KILIAN PARIS and Jo Malone London. New fragrance launches and continued demand for popular collections are expected to have strengthened the company's sales performance.
Beyond product innovation, Estée Lauder's expanding digital presence and improving performance across key markets are likely to have supported first-quarter results. The company's efforts to strengthen its presence on online platforms, including Amazon, TikTok Shop and China's Douyin, may have helped reach new consumers and boost brand visibility. Mainland China is expected to have remained an important growth market, supported by strong demand for prestige beauty products, locally relevant innovation and effective marketing initiatives. Improving travel retail trends across Hainan, Korea and Hong Kong may also have provided a tailwind, aided by better consumer traffic and engaging retail activations. The recovery in North America, supported by M·A·C's expanded presence at Sephora and increased consumer-facing investments, is likely to have contributed to sales growth.
On the profitability front, Estée Lauder's ongoing Beauty Reimagined strategy and Profit Recovery and Growth Plan are expected to have supported first-quarter earnings. The company's efforts to streamline operations, simplify processes and optimize procurement may have helped improve cost efficiency and protect margins. The implementation of its One ELC operating model, alongside improvements in digital capabilities and the use of AI-enabled marketing tools, may have further enhanced productivity and execution. These initiatives are expected to have allowed the company to direct more resources toward brand building, innovation and consumer engagement while maintaining better control over operating expenses. Together, these factors are likely to have supported earnings growth during the quarter.
Despite these positives, certain challenges may have weighed on Estée Lauder's first-quarter performance. Weakness in parts of its Makeup and Hair Care portfolios remains a concern, particularly as Bobbi Brown and Too Faced have witnessed soft retail demand, while Aveda continues to encounter challenges in the salon channel and has been exiting underperforming stores. Inflationary pressures and incremental tariff-related costs could have constrained margin gains despite ongoing efficiency initiatives.
Earnings Whispers for EL Stock
Our proven model conclusively predicts an earnings beat for Estee Lauder this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
Estee Lauder carries a Zacks Rank #2 and has an Earnings ESP of +3.75%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
EL’s Price Performance & Valuation
The recent market movements show that Estee Lauder’s shares have gained 41.2% over the past six months compared with the industry's 43.3% growth.
Image Source: Zacks Investment Research
From the valuation standpoint, EL trades at a forward 12-month P/E multiple of 30.87X, exceeding the industry average of 26.19X. Its valuation appears relatively expensive.
Image Source: Zacks Investment Research
Other Stocks With the Favorable Combination
Here are a few other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for Helen of Troy’s upcoming quarterly revenues is pegged at $502.4 million. The figure indicates a 2% decrease from the prior-year quarter. The Zacks Consensus Estimate for Helen of Troy’s quarterly earnings per share is pegged at $1.94, suggesting a 13.5% rise from the year-ago period figure. HELE delivered a trailing four-quarter earnings surprise of 207.7%, on average.
Ulta Beauty, Inc. (ULTA - Free Report) currently has an Earnings ESP of +2.37% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pegged at $2.99 billion, which indicates an increase of 4.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ulta Beauty’s upcoming quarter’s EPS is pegged at $5.60, which implies a 9% increase year over year. ULTA delivered a trailing four-quarter earnings surprise of roughly 7.6%, on average.
Church & Dwight Co. (CHD - Free Report) currently has an Earnings ESP of +0.06% and a Zacks Rank of 3. The company is likely to register bottom-line growth and a decline in its top line when it reports third-quarter 2026 figures.
The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.58 billion, indicating a decrease of 0.2% from the figure reported in the prior-year quarter. The consensus estimate for CHD’s quarterly earnings of 90 cents per share implies a rise of 11.1% from the year-ago quarter’s level. CHD has a trailing four-quarter earnings surprise of 3.9%, on average.
View the Zacks #1 Rank List
Image: Bigstock
Estee Lauder Gears Up to Report Q1 Earnings: What's in the Offing?
Key Takeaways
The Estee Lauder Companies Inc. (EL - Free Report) is likely to register growth in both top and bottom lines when it reports first-quarter fiscal 2027 earnings on Nov. 2, 2026. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $3.65 billion, indicating 4.8% growth from the same period last year.
The consensus mark for earnings has risen a penny over the past 30 days to 52 cents per share, implying a 62.5% increase from the 32 cents reported in the year-ago quarter.
In the last reported quarter, the leading manufacturers and marketers of skin care, makeup, fragrance and hair care products company’s earnings beat the Zacks Consensus Estimate by 21.9%. Estee Lauder delivered a trailing four-quarter average earnings surprise of 41.4%.
Factors Likely to Impact EL’s Q1 Results
The Estée Lauder Companies’ first-quarter performance is likely to have benefited from continued momentum in its Skin Care and Fragrance businesses, supported by strong brand appeal and an accelerated innovation pipeline. In Skin Care, established brands such as La Mer, Estée Lauder and The Ordinary are expected to have remained key growth drivers, benefiting from sustained demand for hero products and new launches. Innovations across Clinique, The Ordinary and Estée Lauder, particularly in advanced skin care and emerging ingredient trends, may have helped attract consumers. Meanwhile, Fragrance is likely to have maintained its growth momentum, supported by luxury brands such as Le Labo, TOM FORD, KILIAN PARIS and Jo Malone London. New fragrance launches and continued demand for popular collections are expected to have strengthened the company's sales performance.
Beyond product innovation, Estée Lauder's expanding digital presence and improving performance across key markets are likely to have supported first-quarter results. The company's efforts to strengthen its presence on online platforms, including Amazon, TikTok Shop and China's Douyin, may have helped reach new consumers and boost brand visibility. Mainland China is expected to have remained an important growth market, supported by strong demand for prestige beauty products, locally relevant innovation and effective marketing initiatives. Improving travel retail trends across Hainan, Korea and Hong Kong may also have provided a tailwind, aided by better consumer traffic and engaging retail activations. The recovery in North America, supported by M·A·C's expanded presence at Sephora and increased consumer-facing investments, is likely to have contributed to sales growth.
On the profitability front, Estée Lauder's ongoing Beauty Reimagined strategy and Profit Recovery and Growth Plan are expected to have supported first-quarter earnings. The company's efforts to streamline operations, simplify processes and optimize procurement may have helped improve cost efficiency and protect margins. The implementation of its One ELC operating model, alongside improvements in digital capabilities and the use of AI-enabled marketing tools, may have further enhanced productivity and execution. These initiatives are expected to have allowed the company to direct more resources toward brand building, innovation and consumer engagement while maintaining better control over operating expenses. Together, these factors are likely to have supported earnings growth during the quarter.
Despite these positives, certain challenges may have weighed on Estée Lauder's first-quarter performance. Weakness in parts of its Makeup and Hair Care portfolios remains a concern, particularly as Bobbi Brown and Too Faced have witnessed soft retail demand, while Aveda continues to encounter challenges in the salon channel and has been exiting underperforming stores. Inflationary pressures and incremental tariff-related costs could have constrained margin gains despite ongoing efficiency initiatives.
Earnings Whispers for EL Stock
Our proven model conclusively predicts an earnings beat for Estee Lauder this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
Estee Lauder carries a Zacks Rank #2 and has an Earnings ESP of +3.75%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
EL’s Price Performance & Valuation
The recent market movements show that Estee Lauder’s shares have gained 41.2% over the past six months compared with the industry's 43.3% growth.
Image Source: Zacks Investment Research
From the valuation standpoint, EL trades at a forward 12-month P/E multiple of 30.87X, exceeding the industry average of 26.19X. Its valuation appears relatively expensive.
Image Source: Zacks Investment Research
Other Stocks With the Favorable Combination
Here are a few other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
Helen of Troy (HELE - Free Report) currently has an Earnings ESP of +20.62% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Helen of Troy’s upcoming quarterly revenues is pegged at $502.4 million. The figure indicates a 2% decrease from the prior-year quarter. The Zacks Consensus Estimate for Helen of Troy’s quarterly earnings per share is pegged at $1.94, suggesting a 13.5% rise from the year-ago period figure. HELE delivered a trailing four-quarter earnings surprise of 207.7%, on average.
Ulta Beauty, Inc. (ULTA - Free Report) currently has an Earnings ESP of +2.37% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pegged at $2.99 billion, which indicates an increase of 4.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ulta Beauty’s upcoming quarter’s EPS is pegged at $5.60, which implies a 9% increase year over year. ULTA delivered a trailing four-quarter earnings surprise of roughly 7.6%, on average.
Church & Dwight Co. (CHD - Free Report) currently has an Earnings ESP of +0.06% and a Zacks Rank of 3. The company is likely to register bottom-line growth and a decline in its top line when it reports third-quarter 2026 figures.
The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.58 billion, indicating a decrease of 0.2% from the figure reported in the prior-year quarter. The consensus estimate for CHD’s quarterly earnings of 90 cents per share implies a rise of 11.1% from the year-ago quarter’s level. CHD has a trailing four-quarter earnings surprise of 3.9%, on average.