10:59 AM EDT, 08/18/2025 (MT Newswires) -- Estee Lauder ( EL ) is expected to report fiscal Q4 results within the guided range, but the outlook for fiscal 2026 remains clouded, RBC Capital Markets said in a report Monday.

The analysts project the company will achieve low-single-digit top-line growth and a low-teens increase in its bottom line for the full fiscal year. These projections are more conservative than current market expectations, which analysts and RBC believe leave "little room for error," RBC said.

The forecast also reflects a challenging consumer landscape, especially in China, where sentiment remains weak despite modest stabilization in the beauty market. At the same time, the company's travel retail segment remains unsettled, with South Korea's duty-free sales posting sharp declines in recent months, the report said.

Uncertainty also surrounds whether management will continue issuing quarterly guidance or return to annual forecasts, RBC said. "[Estee Lauder ( EL )] has historically provided F1Q'26 guidance that is notably under consensus expectations. However, given new management and several downside revisions over the past few quarters, we wonder if guidance will be more in line with expectations this time around," it added.

RBC has an outperform rating on Estee Lauder ( EL ), with a price target of $90.

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