Estee Lauder Companies Inc (EL)

Operating 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
Operating income (ttm)	US$ in thousands	-785,000	-628,000	-403,000	751,000	970,000	1,198,000	964,000	946,000	1,509,000	1,540,000	1,981,000	2,843,000	3,117,000	3,325,000	3,203,000	2,848,000	2,618,000	1,841,000	1,334,000	532,000
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
Operating profit margin		-5.48%	-4.25%	-2.66%	4.86%	6.21%	7.81%	6.36%	6.10%	9.48%	9.71%	12.11%	16.46%	17.57%	18.36%	18.06%	16.71%	16.15%	12.52%	9.40%	3.81%

June 30, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-785,000K ÷ $14,326,000K
= -5.48%

The operating profit margin of Estee Lauder Companies Inc exhibits a notable fluctuation over the analyzed period from September 2020 through June 2025. Initially, the margin was low at 3.81% as of September 30, 2020, reflecting the impact of the global economic disruptions caused by the COVID-19 pandemic. A significant improvement is observed thereafter, with the margin increasing progressively to reach 16.71% by September 30, 2021, and peaking slightly higher at 18.36% on March 31, 2022. This upward trend indicates a period of robust operational efficiency and effective cost management, likely supported by increased demand and restructuring efforts.

However, starting from the second quarter of 2022, the operating profit margin begins to decline, tapering to 16.46% on September 30, 2022, and further decreasing to 12.11% by December 31, 2022. This downward trajectory continues through 2023, with the margin reaching approximately 9.71% on March 31, 2023, and further declining to 6.10% by September 30, 2023. The persistence of the decline signals escalating challenges in maintaining previously high levels of operational profitability.

From late 2023 onward, the margin shifts into negative territory, recording -2.66% on December 31, 2024, and deteriorating further to -4.25% by March 31, 2025, and -5.48% on June 30, 2025. The transition into negative margins indicates substantial operational challenges, potentially driven by increased costs, pricing pressures, or market disruptions impacting profitability.

Overall, the data illustrates a substantial cyclical pattern, with a recovery evident in the early part of the period followed by a persistent decline leading to losses in the most recent reported quarters. This trend underscores the importance of evaluating underlying operational factors and strategic initiatives affecting profitability.