Estée Lauder targets 16.5%-18.5% margin by 2030

The Estée Lauder Companies said it aims to reach an adjusted operating margin of 16.5 percent to 18.5 percent in fiscal 2030 as part of new long-term financial targets announced at an investor event in Shanghai.

The beauty company also said it is targeting sustainable mid-single-digit annual organic net sales growth and double-digit adjusted diluted earnings per share growth through fiscal 2030.

Chief executive Stéphane de La Faverie said the company was moving from restoring growth to accelerating sustainable and profitable growth. The company said its plans build on its Beauty Reimagined strategy and One ELC operating model.

Estée Lauder said it expects margin gains from completing approved initiatives under its Profit Recovery and Growth Plan, reducing non-consumer-facing expenses and improving operational efficiency. It also said it expects its adjusted effective tax rate to reach 30 percent or below by fiscal 2030.

The company described the targets as unaudited ambitions and said the release included forward-looking non-GAAP financial measures. It said it could not provide full reconciliations to comparable GAAP measures without unreasonable effort.