The Estée Lauder Companies Inc.

Fiscal ’26 performance: strong re-acceleration + major margin expansion - Organic net sales: +3% (reported +5%). Growth delivered in every quarter and across multiple brands/categories. - Profitability: Gross margin +150 bps and operating margin +320 bps; diluted EPS +66%. - Brand milestones: Jo Malone London and TOM FORD joined the “billion-dollar club” (now 7 such brands including Clinique, Estée Lauder, La Mer, M·A·C). - Category highlights: Skin Care +4% organic, Fragrance +10% organic, Makeup stabilized with improved trend; Hair Care not yet back to organic growth but showing turnaround signs (notably Aveda U.S. share expansion).

Transformation execution (PRGP / Beauty Reimagined): benefits faster & stronger than expected - CEO confirmed the big reorg/operating model program is now largely completed for approvals (PRGP approvals done by June 30). - Fiscal ’26 PRGP charges: $823m total cumulative charges (mainly employee-related costs). - Nonconsumer-facing cost actions drove operating leverage: SG&A optimization and disciplined fixed-cost streamlining; management emphasized “everyday efficiency” continues beyond approval phase.

Cash flow and capital discipline: strong cash generation despite restructuring payments - Cash from operations: $1.8b (up from $1.3b last year), supported by better working capital discipline. - CapEx: $457m (down from $602m), prioritized to support consumer-facing growth (brick-and-mortar + online distribution upgrades). - Year-end cash: $3.5b on hand. - Tax: adjusted effective tax rate improved to 35.7% (from 38.8% last year).