Estee Lauder Companies Inc (EL)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -1,040,000 | -868,000 | -623,000 | 546,000 | 772,000 | 1,003,000 | 797,000 | 810,000 | 1,397,000 | 1,493,000 | 1,916,000 | 2,772,000 | 3,036,000 | 4,038,000 | 3,915,000 | 3,557,000 | 3,331,000 | 1,676,000 | 1,176,000 | 957,000 |
| 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 |
| Pretax margin | -7.26% | -5.87% | -4.11% | 3.53% | 4.95% | 6.54% | 5.26% | 5.23% | 8.78% | 9.41% | 11.71% | 16.05% | 17.12% | 22.29% | 22.08% | 20.87% | 20.54% | 11.39% | 8.29% | 6.85% |
June 30, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-1,040,000K ÷ $14,326,000K
= -7.26%
The pretax margin of Estee Lauder Companies Inc. demonstrates significant fluctuations over the analyzed period. Beginning at 6.85% as of September 30, 2020, there was a notable upward trajectory reaching a peak of 22.29% by March 31, 2022. This period reflects strong profitability relative to earnings before tax, with the margin more than tripling from the initial figure.
Subsequently, a downward trend emerged following this peak, with the pretax margin declining to 17.12% by June 30, 2022, and further decreasing to 11.71% by December 31, 2022. This decline continued into 2023, with the margin falling to 9.41% on March 31, 2023, and further reducing to 8.78% by June 30, 2023. The trend persisted into September 2023, with the pretax margin diminishing to 5.23%.
In the most recent quarters, the margin has continued to decline, with negative values observed: -4.11% as of December 31, 2024, and further deterioration to -5.87% and -7.26% on March 31, 2025, and June 30, 2025, respectively. This transition into negative territory indicates that the company has experienced periods of pre-tax losses, reflecting deteriorating profitability and increasing operational or market challenges.
Overall, the company's pretax margin experienced substantial growth from 2020 into early 2022, followed by a consistent and pronounced decline through 2023 and into 2025. The recent negative margins reveal a significant downturn in profitability, marking a period of financial stress and operational difficulties.
Peer comparison
Jun 30, 2025