Estee Lauder sets 2030 growth, margin targets as turnaround advances

Nov 4 (Reuters) - Estee ‌Lauder said ​on ​Wednesday it aims to lift its adjusted operating margin by as much as 5.6 ‌percentage points over the next three years, ⁠as the cosmetics maker builds on progress in its turnaround.

The ‌company is targeting an ‌adjusted operating margin of 16.5% to 18.5% in fiscal 2030, compared with its fiscal 2027 guidance ​of 12.9% to 13.8%.

The targets come days after Estee Lauder raised its fiscal 2027 ⁠sales and profit forecasts, citing strong demand for premium fragrances and skincare ​products.

"We are now entering a new chapter, moving beyond restoring growth to accelerating sustainable, ​profitable growth and creating long-term ‌value," its CEO Stephane de La Faverie said in a statement as ⁠the company held a capital markets event in Shanghai.

"Our fiscal 2027 outlook reflects this momentum, with accelerating organic ⁠sales growth and another year of significant profitability improvement," de ​La Faverie said.

Mainland China is a bright spot in Estee Lauder's turnaround efforts. The company said it expects strong ‌organic sales growth from new and existing products following increased consumer-facing investment.

Estee Lauder ‌also said it aims to deliver mid-single-digit organic ⁠sales growth annually and ‌double-digit adjusted earnings ​per share growth through fiscal 2030.

(Reporting by Disha Mishra in Bengaluru; Editing by Miyoung ‌Kim)

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