Estee Lauder Companies Inc (EL)
Operating profit margin
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -785,000 | 970,000 | 1,509,000 | 3,170,000 | 2,618,000 |
| Revenue | US$ in thousands | 14,326,000 | 15,608,000 | 15,910,000 | 17,737,000 | 16,215,000 |
| Operating profit margin | -5.48% | 6.21% | 9.48% | 17.87% | 16.15% |
June 30, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $-785,000K ÷ $14,326,000K
= -5.48%
The operating profit margin of Estee Lauder Companies Inc has exhibited notable fluctuations over the specified period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company reported an operating profit margin of 16.15%, indicating a healthy profitability level in its core operations. This margin increased markedly to 17.87% by June 30, 2022, suggesting an improvement in operational efficiency or successful strategic initiatives during that period.
However, a significant decline is observable in the subsequent years. By June 30, 2023, the operating profit margin diminished sharply to 9.48%, reflecting potential challenges such as increased costs, declining revenues, or competitive pressures impacting profitability. The downward trend persisted into June 30, 2024, with the margin decreasing further to 6.21%, underscoring ongoing pressures on operational profitability.
Projections for June 30, 2025, indicate a negative operating profit margin of -5.48%, which implies that the company's core operations are expected to be unprofitable in that fiscal year. This negative margin suggests substantial operational difficulties, possibly from significant expenses, restructuring costs, or adverse market conditions.
Overall, the trend reflects a notable decline in operating profitability over the analyzed period, transitioning from strong margins in 2021 and 2022 to negative margins projected for 2025. This trajectory highlights the importance of examining underlying factors influencing operational costs, revenues, and strategic responses within the company's broader financial context.
Peer comparison
Jun 30, 2025