Estée Lauder has set financial targets through fiscal 2030, aiming for sustainable mid-single-digit annual organic sales growth and double-digit growth in adjusted earnings per share. The company said it is building on a recovery in China while working to improve profitability.
At an investor event in Shanghai, the cosmetics group also set a fiscal 2030 target for adjusted operating margin of 16.5% to 18.5%. The targets mark a push for faster growth after several years of weaker performance, particularly in China, where the company faced subdued consumer demand, competition from domestic brands and discounted products sold by unauthorized sellers.
Mainland China has posted positive organic sales growth for four consecutive quarters. It generated $3.1 billion in net sales in Estée Lauder’s most recent fiscal year, or about 20% of the company’s total revenue.
Estée Lauder plans to tailor products and marketing to Chinese consumers and apply lessons from MAC Cosmetics’ turnaround to other brands, including Aveda. The company expects margin expansion to be stronger in fiscal 2028 than in fiscal 2029 and 2030, as its Profit Recovery and Growth Plan, which runs through fiscal 2027, contributes for a full year.
The company also expects its adjusted effective tax rate to reach 30% or lower by fiscal 2030. Higher earnings, lower restructuring payments and working-capital efficiencies are expected to support operating and free cash flow.
For fiscal 2028, Estée Lauder anticipates about $40 million to $50 million in restructuring and other charges before taxes. It also said the potential impact on net sales from its acquisition of Forest Essentials in the first quarter of fiscal 2028 could not yet be forecast with reasonable certainty.
Sources: Investing.com News.