Estée Lauder swings toward recovery: Q4 loss shrinks, profit outlook raised

Washington - The Estée Lauder Co. Inc. (EL), a cosmetics company, on Wednesday reported that its net loss narrowed in the fourth quarter compared with the loss in the same period a year earlier. The company also raised its full-year 2027 adjusted operating margin outlook.

For the fourth quarter, net loss narrowed to 116 million dollars from 546 million dollars in the previous year. Loss per share came in at 0.32 dollars versus 1.51 dollars a year ago, while adjusted earnings per share rose to 0.39 dollars from 0.09 dollars.

Operating loss narrowed to 39 million dollars from 390 million dollars in the prior year, and adjusted operating income increased to 267 million dollars from 137 million dollars in the same period a year earlier. Net sales grew to 3.63 billion dollars from 3.41 billion dollars.

The company declared a quarterly cash dividend of 0.35 dollars per share on its Class A and Class B common stock, payable on 15 September to shareholders of record as of 31 August.

Looking ahead, Estée Lauder reaffirmed that it expects full-year 2027 net sales growth of 3 to 5 percent. Adjusted earnings per share are expected to range from 3.10 dollars to 3.35 dollars, representing growth of 24 to 34 percent.

The company raised its full-year 2027 adjusted operating margin outlook to a range of 12.7 to 13.5 percent.

In pre-market trading, Estée Lauder shares were 7.96 percent higher at 91 dollars on the New York Stock Exchange.