Estee Lauder Companies Inc (EL)

Gross profit margin

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Gross profit (ttm)	US$ in thousands	10,597,000	10,919,000	11,091,000	11,169,000	11,184,000	10,852,000	10,611,000	10,887,000	11,346,000	11,430,000	12,089,000	13,004,000	13,432,000	13,852,000	13,526,000	12,979,000	12,381,000	11,094,000	10,678,000	10,492,000
Revenue (ttm)	US$ in thousands	14,326,000	14,786,000	15,176,000	15,451,000	15,608,000	15,346,000	15,157,000	15,498,000	15,910,000	15,862,000	16,356,000	17,275,000	17,737,000	18,112,000	17,731,000	17,045,000	16,215,000	14,709,000	14,190,000	13,961,000
Gross profit margin		73.97%	73.85%	73.08%	72.29%	71.66%	70.72%	70.01%	70.25%	71.31%	72.06%	73.91%	75.28%	75.73%	76.48%	76.28%	76.15%	76.36%	75.42%	75.25%	75.15%

June 30, 2025 calculation

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

The gross profit margin of Estee Lauder Companies Inc. exhibits a pattern of fluctuations over the analyzed period. From September 30, 2020, to March 31, 2022, the margin remained relatively stable, generally exceeding 75.0%, with values oscillating between 75.15% and 76.48%. The observed slight upward trend during this period indicates a consistent ability to retain a significant portion of revenue after direct costs, reflecting efficient production and cost management practices.

Starting in June 2022, a noticeable decline in gross profit margin is observed, decreasing from approximately 75.73% in June 2022 to a low of 70.01% as of December 31, 2022. This downward trend continues into the first half of 2023, reaching approximately 70.72% in March 2023 before slightly improving to 71.66% in June 2024. The margin then demonstrates a gradual upward trend, rising to 73.97% by June 2025.

This pattern suggests that while the company faced challenges impacting its gross profit margin during late 2022 and early 2023—potentially due to factors such as increased costs, shifts in sales mix, or external market pressures—the subsequent periods indicate a recovery and stabilization of gross profitability. The recent upward trajectory toward and beyond the 73% level implies an ongoing adjustment or improvement in cost management, pricing strategies, or product mix.

Overall, the historical gross profit margin reflects a high level of profitability maintained over the majority of the analyzed timeframe, with notable declines during late 2022 and early 2023, followed by a recovery phase. The company's ability to sustain a gross margin near or above 70% demonstrates strong control over production costs relative to revenue.