Estee Lauder's Cost-Cutting Program Fuels Margin Gains

Dow Jones11-02 19:20

Estee Lauder's Profit Recovery and Growth Plan drove significant margin expansion in fiscal first quarter 2027. Adjusted gross margin widened 240 basis points to 75.7%, while adjusted operating margin expanded 480 basis points to 12.1%. The company says the improvement reflects procurement savings, expense optimization and manufacturing efficiencies from the PRGP, along with benefits from strategic pricing actions and sales leverage. Those gains offset inflation and provided funding for an 8% increase in consumer-facing investments. The improvements came across all geographic regions, with EUKEM's operating margin climbing to 4.8% from 0.7%

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