12:16 PM EDT, 08/20/2025 (MT Newswires) -- Estee Lauder ( EL ) on Wednesday guided earnings for the current fiscal year below Wall Street's estimates and warned of a $100 million hit from tariffs, as its results for the just-ended quarter fell year over year.

For fiscal 2026, the cosmetics company expects adjusted per-share earnings of $1.87 to $2.07 on a constant currency basis, reflecting an increase of 24% to 37% from the prior year. That was still below the FactSet-polled EPS consensus forecast of $2.20.

Estee Lauder ( EL ) projects tariff-related headwinds to impact its profitability by roughly $100 million this year, net of mitigation actions. The company continues to assess additional options, including potential pricing actions, to further counter the effects of tariffs.

The stock was down 5.2% in Wednesday trade, trimming its year-to-date gain to 14%.

"For fiscal 2026, we expect to deliver low single-digit organic sales growth, maintain our now-strong gross margin despite the headwind of incremental tariffs, and expand our operating margin by 165 basis points at the midpoint," Chief Executive Stephane de La Faverie said on a call with analysts, according to a FactSet transcript.

Adjusted EPS for the fiscal fourth quarter ended June 30 fell to $0.09 from $0.64 a year earlier, in line with the consensus. Sales dropped 12% to $3.41 billion, narrowly exceeding analysts' $3.39 billion estimate.

The lower sales reflected declines across all product categories, except fragrance, which was flat.

The company said it will report fiscal 2026 and comparable results by geographic region.

"Despite continued volatility in the external environment, we embarked on fiscal 2026 with signs of momentum and confidence in our outlook to deliver organic sales growth this year after three years of declines and to begin rebuilding operating profitability in pursuit of a solid double-digit adjusted operating margin over the next few years," de La Faverie said in a statement.

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