Estee Lauder Companies Inc (EL)

Net 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
Net income (ttm)	US$ in thousands	-1,133,000	-871,000	-700,000	203,000	390,000	641,000	467,000	548,000	1,006,000	1,091,000	1,493,000	2,187,000	2,390,000	3,356,000	3,254,000	3,039,000	2,870,000	1,390,000	928,000	612,000
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
Net profit margin		-7.91%	-5.89%	-4.61%	1.31%	2.50%	4.18%	3.08%	3.54%	6.32%	6.88%	9.13%	12.66%	13.47%	18.53%	18.35%	17.83%	17.70%	9.45%	6.54%	4.38%

June 30, 2025 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-1,133,000K ÷ $14,326,000K
= -7.91%

The net profit margin of Estee Lauder Companies Inc exhibits significant fluctuation over the analyzed period from September 2020 through June 2025. Initially, in the fiscal quarter ending September 30, 2020, the company's net profit margin stood at 4.38%. This margin increased markedly over the subsequent quarters, reaching a peak of approximately 18.53% in the quarter ending March 31, 2022, indicating a period of strong profitability and efficient cost management.

Following this peak, a consistent decline in net profit margin is observed, with the figure dropping to approximately 12.66% in September 2022, then further declining to 9.13% by the end of December 2022, and continuing downward through March and June 2023, reaching approximately 6.88% and 6.32%, respectively. This trend suggests a reduction in profitability, potentially attributable to increased costs, competitive pressures, or macroeconomic factors affecting revenue and expense management.

Post-June 2023, the margin exhibits a notable decline, falling to 3.54% in September 2023, and further decreasing to 3.08% in December 2023. The subsequent quarters show a continued deterioration, with margins turning negative—at -4.61% in December 2024, -5.89% in March 2025, and reaching -7.91% in June 2025—indicating that the company is experiencing losses relative to its revenues.

Overall, the data illustrates a transition from periods of healthy profitability in early 2021 to a steady decline culminating in negative net profit margins by the end of the analyzed period. This trend signifies escalating challenges, potentially involving shrinking profit margins, increased expenses, or declining revenues that have adversely impacted the company's bottom-line performance over time.