Estee Lauder Companies Inc (EL)

Gross profit margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Gross profit	US$ in thousands	10,597,000	11,184,000	11,346,000	13,432,000	12,381,000
Revenue	US$ in thousands	14,326,000	15,608,000	15,910,000	17,737,000	16,215,000
Gross profit margin		73.97%	71.66%	71.31%	75.73%	76.36%

June 30, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $10,597,000K ÷ $14,326,000K
= 73.97%

The gross profit margin of Estee Lauder Companies Inc. exhibits variations over the analyzed period from June 30, 2021, through June 30, 2025. In fiscal 2021, the gross profit margin was recorded at 76.36%, indicating a relatively high level of profitability on sales after cost of goods sold. By fiscal 2022, this margin declined slightly to 75.73%, reflecting a modest compression potentially attributable to increased costs or pricing strategies.

The trend experienced a more pronounced decrease by fiscal 2023, with the gross profit margin diminishing to 71.31%. This decline may suggest increased cost pressures, pricing challenges, or competitive influences impacting profitability. Interestingly, in fiscal 2024, the gross profit margin saw a slight recovery to 71.66%, suggesting some stabilization or amelioration in cost control or sales mix.

The most notable change occurs in fiscal 2025, where the gross profit margin increases to 73.97%. This improvement indicates a positive shift and could be indicative of effective cost management, product mix optimization, or strategic pricing adjustments aimed at restoring margins.

Overall, the gross profit margin trend reflects initial stability, a decline over the mid-period years, followed by a recovery in the most recent fiscal year. The fluctuations highlight the company's ongoing challenges and strategic responses concerning cost and pricing dynamics within its operational framework.