Estee Lauder sets 2030 growth, margin targets as turnaround advances

Nov 4 (Reuters) - Estee Lauder EL.N 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.