Estée Lauder(US:EL) Zheng Quan Ri Bao·2025-11-02 12:36Core Insights - Estée Lauder Companies reported significant performance recovery in Q1 of FY2026, driven by the "Reimagining Beauty" strategy, aiming for sustainable sales growth and improved operational profitability [2] Financial Performance - The company achieved net sales of $3.5 billion, a year-over-year increase of 4%, with organic net sales growing by 3%, a notable recovery from a 13% decline in the previous fiscal quarter [2] - Gross margin increased by 100 basis points from 72.4% to 73.4%, while adjusted gross margin rose by 60 basis points from 72.7% to 73.3% [2] - Operating profit margin improved significantly to 4.9%, compared to -3.6% in the same period last year; adjusted operating profit margin surged from 4.3% to 7.3%, an increase of 300 basis points [2] Market Performance - The China mainland market emerged as a key highlight, contributing to a 9% organic net sales growth in the Asia-Pacific region, with double-digit growth in retail sales in the high-end beauty sector [2] - Seven brands under the company achieved double-digit growth, with Le Labo nearing triple-digit growth [2] Strategic Initiatives - The growth in the China mainland market is attributed to a dual approach of innovation and existing product expansion, targeted consumer outreach, and key marketing activities supporting online growth [3] - For the full FY2026, the company reaffirmed its outlook, expecting organic net sales to remain flat to grow by 3%, with adjusted operating profit margin projected between 9.4% and 9.9% [3] - The company is addressing external uncertainties, such as tariff policies, by optimizing regional production layouts and bringing production closer to consumer locations [3]