Estee Lauder Posts a Higher Gross Margin Despite Tariff Pressures

Key Takeaways EL lifted Q2 gross margin to 76.5%, up 40 bps despite tariffs and mix shifts. Estee Lauder credited PRGP savings, lower excess costs and sales leverage for gains. EL expects about $100M in FY26 tariff impacts and guides 9.8%-10.2% operating margin. The Estee Lauder Companies (EL) reported a gross margin of 76.5% in the second quarter of fiscal 2026, up from 76.1% in the prior-year period, reflecting a 40-basis-point increase. The expansion was achieved despite ongoing external pressures, inclu ...