Estee Lauder (NYSE:EL) shares rose sharply Friday, after the cosmetics company reported better-than-expected third-quarter sales in its earnings report. The company reported earnings of $0.91 per share and $3.71 billion in revenue, compared to estimates for $0.65 in earnings per share and $3.69 billion in revenue.
Estee Lauder also announced plans to cut more jobs as part of its turnaround plan.
“Our third-quarter results extend strong year-to-date performance, driven by Beauty Reimagined,” said CEO Stéphane de La Faverie.
“In the first nine months of fiscal 2026, organic sales for Fragrance rose double-digits, while three of four regions grew, led by high single-digit growth in Mainland China where we outperformed prestige beauty to gain share.
“With momentum across all five action plan priorities of Beauty Reimagined, today we raised our fiscal 2026 outlook, now expecting organic sales growth at the high-end of the prior range and adjusted operating margin expansion to approach 300 basis points, bolstered in part by adjusted gross margin expansion.”
de La Faverie emphasized, “Fiscal 2026 is promising to be the pivotal year we intended, one in which we restore organic sales growth and expand our adjusted operating margin for the first time in four years. Looking ahead to fiscal 2027, we are confident in our improving trajectory and realizing the benefits of One ELC, especially its One Operating Ecosystem which will be fully deployed.”
EL shares kicked off the week’s last session up $4.75, or 6.2%, to $81.46.
