Schwab Network on $EL (Nov 2, 2026)

Estee Lauder is working on a path of change, and you can see from the latest results that that change is gaining momentum. The stock is now slightly positive, up about half a percent in response, but it beat expectations on both revenue and profit.

Big gains in profit, with earnings per share of 72 cents on an adjusted basis. The market expectation was 51 cents. In terms of revenue, revenue came in at $3.72 billion, which was better than expected. The expectation was $3.65 billion.

What is noteworthy here is that perfume sales have increased by 20 percent. Nicole, this is one of the company's fastest growing businesses. These include Tom Ford, Zoe Malone and Killian Paris.

All of these are achieving double-digit growth. Kilian Paris is the fastest growing brand.

Consumers are spending, and they are spending on premium fragrances, even though we know that inflation is having a big impact on people's budgets. Families are still willing to spend for the experience, or in this case, for the fragrance.

Overall sales increased by 7 percent. Looking ahead to fiscal 2027, Estée Lauder now expects adjusted earnings of between $320 and $345. This is higher than their previous forecast.

Organic sales are expected to grow by 4 to 5.5 percent.

The CEO says their 'Beauty Reimagined ' strategy is basically working. This is evident throughout their business, which includes some of the restructuring we discussed earlier, and they are trying to attract younger shoppers through various collaborations.