Estee Lauder Companies (EL) Economic Moat Analysis—

Preuves

Below is a chart showing brands we sell and how we view them based on lifestyle and price point: 4 Table of Contents Estée Lauder brand products, which have been sold since 1946, have a reputation for innovation, sophistication and superior quality.

Business / Our Brands / Estée Lauder history · Dépôt 19/08/2026

They are the pillars of our brands and historically have provided strong results through high repeat sales and consumer loyalty.

Business / Marketing / historical hero-product repeat sales · Dépôt 20/08/2025

Reported skin care net sales increased 5% in fiscal 2026, driven by an increase from pricing of 3%, reflecting changes in mix and the favorable impact from strategic pricing actions, and the favorable impact from foreign currency translation of 2%.

MD&A / fiscal 2026 skin care pricing and mix · Dépôt 19/08/2026

The impact from volume was flat period-over-period.

MD&A / fiscal 2026 skin care volume · Dépôt 19/08/2026

Fragrance Reported fragrance net sales increased $288 million, or 12%, in fiscal 2026, reflecting higher net sales from Le Labo, TOM FORD and KILIAN PARIS, combined, of approximately $221 million.

MD&A / fiscal 2026 fragrance sales · Dépôt 19/08/2026

The Company’s performance obligation is to license the TOM FORD trademark to Marcolin and to Zegna, which grants them the right to access the symbolic intellectual property.

Revenue recognition / TOM FORD trademark licensing · Dépôt 19/08/2026

The remaining balance of deferred revenue as of June 30, 2026 will be recognized as revenue beyond the next twelve months, of which, $198 million relates to the non-refundable upfront payment received as part of the Marcolin licensing arrangement that is being recognized on a straight-line basis over the estimated economic life of the license, which is 20 years ending in fiscal 2043.

Revenue recognition / received licensing upfront payment and recognition period · Dépôt 19/08/2026

Reported fragrance net sales increased 12% for the six months ended December 31, 2025, driven by the increase from pricing of 5%, reflecting changes in mix and the favorable impact from strategic pricing actions, the increase from volume of 4% and the favorable impact from foreign currency translation of 2%.

MD&A / six months ended December 31, 2025 / fragrance pricing and volume · Dépôt 05/02/2026

Partially offsetting these increases was a decrease from pricing of 4%, reflecting changes in mix, partially offset by the favorable impact from strategic pricing actions.

MD&A / fiscal 2026 makeup pricing and mix · Dépôt 19/08/2026

49 Table of Contents RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES The following table reconciles the change in net sales by geographic region, as reported, to the change in net sales excluding the effects of foreign currency translation: As Reported Year Ended June 30, ($ in millions) 2025 2024 Variance Impact of foreign currency translation Variance, in constant currency % Change, as reported % Change, in constant currency By Geographic Region: The Americas $ 4,410 $ 4,579 $ (169) $ 53 $ (116) (4) % (3) % EUKEM 3,566 3,539 27 (49) (22) 1 (1) Asia/Pacific 3,606 4,587 (981) 29 (952) (21) (21) Mainland China 2,741 2,904 (163) (5) (168) (6) (6) 14,323 15,609 (1,286) 28 (1,258) (8) % (8) % Returns associated with restructuring and other activities 3 (1) 4 — 4 Total $ 14,326 $ 15,608 $ (1,282) $ 28 $ (1,254) The following table reconciles the change in operating results by geographic region, as reported, to the change in operating results excluding the impact of the impairment of goodwill and other intangible assets, the Talcum litigation settlement agreements and the change in fair value of DECIEM acquisition-related stock options inclusive of payroll tax: As Reported Add: Changes in impairments of goodwill and other intangible assets Add: Talcum litigation settlement agreements Add: Change in fair value of DECIEM acquisition-related stock options inclusive of payroll tax Variance, as adjusted % Change, as reported % Change, as adjusted Year Ended June 30, ($ in millions) 2025 2024 Variance By Geographic Region: The Americas $ (818) $ 168 $ (986) $ 911 $ 159 $ (14) $ 70 (100+)% 38 % EUKEM 145 102 43 — — (9) 34 42 31 Asia/Pacific 180 510 (330) (96) — — (426) (65) (43) Mainland China 194 314 (120) — — — (120) (38) (38) (299) 1,094 $ (1,393) $ 815 $ 159 $ (23) $ (442) (100+)% (28) % Charges associated with restructuring and other activities (486) (124) Total $ (785) $ 970 50 Table of Contents FINANCIAL CONDITION LIQUIDITY AND CAPITAL RESOURCES Overview Our principal sources of funds historically have been cash flows from operations, borrowings pursuant to our commercial paper program, borrowings from the issuance of long-term debt and committed and uncommitted credit lines provided by banks and other lenders in the United States and abroad.

MD&A / fiscal 2025 regional sales and operating-result reconciliations · Dépôt 19/08/2026

The reported operating margin for fiscal 2026 increased from the prior year, driven by the favorable operating expense margin, which includes the favorable year-over-year impact of goodwill and other intangible asset impairment charges in fiscal 2025 of $1,286 million, as well as the increase in net sales and increase in gross margin, as discussed above.

MD&A / fiscal 2026 operating-margin recovery and prior impairments · Dépôt 19/08/2026

Some competitors have greater resources than we do, others are newer companies (such as Indie Brands, some of which are backed by private-equity investors), and some are competing in distribution channels where we are less represented.

Risk factors / competitor resources, newer entrants and distribution · Dépôt 19/08/2026

The beauty business can change rapidly due to consumer preferences and industry trends.

Risk factors / changing beauty preferences · Dépôt 19/08/2026

Ulta Beauty, LVMH and L’Oreal disclose their plastic footprints.10,11,12 L’Oreal and L’Occitane-En-Provence disclose plastic reduction goals.13 Unlike its peers and despite the business risks and broad societal consequences associated with plastic packaging, Estée Lauder does not disclose its plastic footprint and has not set a plastic reduction goal.

Stockholder packaging proposal / named peer comparisons and proponent assertions · Dépôt 30/09/2026

Reported net sales increased 5% for the nine months ended March 31, 2026, driven by the favorable impact from foreign currency translation of 2%, the increase from volume of 2% and the increase from pricing of 1%, reflecting the favorable impact from strategic price actions, partially offset by changes in mix.

MD&A / nine months ended March 31, 2026 / company pricing and volume · Dépôt 01/05/2026

Reported hair care net sales were virtually flat for the nine months ended March 31, 2026, driven by the increase from pricing of 6%, reflecting changes in mix and the favorable impact from strategic pricing actions, and the favorable impact from foreign currency translation of 1%.

MD&A / nine months ended March 31, 2026 / hair care pricing and mix · Dépôt 01/05/2026

These increases were offset by the decrease from volume of 6%.

MD&A / nine months ended March 31, 2026 / hair care volume · Dépôt 01/05/2026

Such elements of variable consideration include product returns and sales incentives, such as volume rebates and discounts, markdowns, margin adjustments and early-payment discounts.

Revenue recognition / rebates, discounts, markdowns and margin adjustments · Dépôt 19/08/2026

If one or more of our largest customers change their strategies (including pricing or promotional activities), enter bankruptcy (or similar proceedings) or if our relationship with any large customer is changed or terminated for any reason, there could be a material adverse effect on our business.

Risk factors / large-customer strategy and relationship dependence · Dépôt 19/08/2026

THE ESTÉE LAUDER COMPANIES INC. CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (Unaudited) Three Months Ended March 31, Nine Months Ended March 31, (In millions, except per share data) 2026 2025 2026 2025 Net sales $ 3,712 $ 3,550 $ 11,422 $ 10,915 Cost of sales 876 889 2,797 2,774 Gross profit 2,836 2,661 8,625 8,141 Operating expenses Selling, general and administrative 2,279 2,258 7,202 7,141 Restructuring and other charges 224 97 520 375 Securities class action litigation settlement 84 — 84 — Impairment of goodwill and other intangible assets — — — 861 Talcum litigation settlement agreements — — — 159 Total operating expenses 2,587 2,355 7,806 8,536 Operating income (loss) 249 306 819 (395) Interest expense 82 87 253 269 Interest income and investment income, net 15 27 66 85 Other components of net periodic benefit cost 3 5 11 10 Earnings (loss) before income taxes 179 241 621 (589) Provision (benefit) for income taxes 90 82 323 (2) Net earnings (loss) $ 89 $ 159 $ 298 $ (587) Net earnings (loss) per common share Basic $ .25 $ .44 $ .82 $ (1.63) Diluted $ .24 $ .44 $ .82 $ (1.63) Weighted average common shares outstanding Basic 362.7 360.3 362.0 359.9 Diluted 365.4 361.4 364.5 359.9 See notes to consolidated financial statements.

Consolidated statements of earnings / three and nine months ended March 31, 2026 · Dépôt 01/05/2026

Beginning in December 2022, we suspended the repurchase of shares of our Class A Common Stock under our publicly announced program.

Share repurchase program / suspension since December 2022 · Dépôt 19/08/2026

Information about the Company’s common stock outstanding is as follows: (Shares in thousands) Class A Class B Balance at June 30, 2023 232,077.9 125,542.0 Acquisition of treasury stock(1) (316.5) — Stock-based compensation 1,385.2 — Balance at June 30, 2024 233,146.6 125,542.0 Acquisition of treasury stock(1) (482.5) — Stock-based compensation 1,560.7 — Balance at June 30, 2025 234,224.8 125,542.0 Acquisition of treasury stock(1) (736.7) — Conversion of Class B to Class A 11,034.7 (11,034.7) Stock-based compensation 2,768.4 — Balance at June 30, 2026 247,291.2 114,507.3 (1)These amounts represent shares that were repurchased by the Company to satisfy tax withholding obligations upon the payout of certain stock-based compensation arrangements.

Stockholders' equity / actual share-count changes and stock compensation · Dépôt 19/08/2026

The Company had initially expected that the Restructuring Program would result in restructuring and other charges totaling between $1,200 million and $1,600 million, before taxes, which was updated during fiscal 2026 to a range of $1,500 million and $1,700 million.

Restructuring program / increased estimated charges · Dépôt 19/08/2026

Based on the total approved initiatives, as of June 30, 2026, the Company now estimates total restructuring and other charges of $1,748 million, before taxes, consisting of employee-related costs, asset-related costs, contract terminations and other costs associated with implementing these initiatives, which other than the non-cash charges, have been funded from cash provided by operations for initiatives implemented to date, and for the remaining initiatives are expected to result in future cash expenditures funded from cash provided by operations.

Restructuring program / latest estimated charges and funding of implemented initiatives · Dépôt 19/08/2026

The change in net cash flows used for investing activities was primarily driven by a favorable year-over-year impact from lower capital expenditures compared to the prior year.

Liquidity and capital resources / lower capital expenditures · Dépôt 19/08/2026

The change in net cash flows used for financing activities primarily reflected a decrease in repayments of long-term debt due to the repayment of the outstanding principal balance of our $500 million, 2.000% Senior Notes that matured during the fiscal 2025 second quarter, a decrease in dividends paid to stockholders in the current year, and the favorable year-over-year impact of settlements of cross-currency swap contracts.

Liquidity and capital resources / debt repayments and lower dividends paid · Dépôt 19/08/2026

Based on the Company’s below-threshold performance over the three-year period ended June 30, 2026, the PSUs granted in August 2023 (fiscal 2024) yielded no payout (all shares forfeited and no dividends paid) to our NEOs.

Executive compensation / actual forfeiture of fiscal 2024 PSUs · Dépôt 30/09/2026

Canevari ​ ​ ​ ​ ​ ​ ​ % of Target ​ ​ Actual Payout % ​ ​ % of Target ​ ​ Actual Payout % ​ ​ % of Target ​ ​ Actual Payout % ​ ​ % of Target ​ ​ Actual Payout % ​ ​ % of Target ​ ​ Actual Payout % ​ ​ ​ ​ Business Unit Strategic Goals (Individual) ​ ​ ​ ​ 20.0% ​ ​ ​ ​ ​ 120.0% ​ ​ ​ ​ ​ 20.0% ​ ​ ​ ​ ​ 112.0% ​ ​ ​ ​ ​ 20.0% ​ ​ ​ ​ ​ 112.0% ​ ​ ​ ​ ​ 20.0% ​ ​ ​ ​ ​ 120.0% ​ ​ ​ ​ ​ 20.0% ​ ​ ​ ​ ​ 116.0% ​ ​ ​ ​ ​ Total Company Net Sales* ​ ​ ​ ​ 36.0% ​ ​ ​ ​ ​ 105.6% ​ ​ ​ ​ ​ 36.0% ​ ​ ​ ​ ​ 105.6% ​ ​ ​ ​ ​ 36.0% ​ ​ ​ ​ ​ 105.6% ​ ​ ​ ​ ​ 36.0% ​ ​ ​ ​ ​ 105.6% ​ ​ ​ ​ ​ 36.0% ​ ​ ​ ​ ​ 105.6% ​ ​ ​ ​ ​ Total Company NOP Margin* ​ ​ ​ ​ 36.0% ​ ​ ​ ​ ​ 119.3% ​ ​ ​ ​ ​ 36.0% ​ ​ ​ ​ ​ 119.3% ​ ​ ​ ​ ​ 36.0% ​ ​ ​ ​ ​ 119.3% ​ ​ ​ ​ ​ 36.0% ​ ​ ​ ​ ​ 119.3% ​ ​ ​ ​ ​ 36.0% ​ ​ ​ ​ ​ 119.3% ​ ​ ​ ​ ​ Weighted Forecast Accuracy ​ ​ ​ ​ 8.0% ​ ​ ​ ​ ​ 97.6% ​ ​ ​ ​ ​ 8.0% ​ ​ ​ ​ ​ 97.6% ​ ​ ​ ​ ​ 8.0% ​ ​ ​ ​ ​ 97.6% ​ ​ ​ ​ ​ 8.0% ​ ​ ​ ​ ​ 97.6% ​ ​ ​ ​ ​ 8.0% ​ ​ ​ ​ ​ 97.6% ​ ​ ​ ​ ​ Business Unit Payout (a) ​ ​ ​ ​ 100.0% ​ ​ ​ ​ ​ 112.8% ​ ​ ​ ​ ​ 100.0% ​ ​ ​ ​ ​ 111.2% ​ ​ ​ ​ ​ 100.0% ​ ​ ​ ​ ​ 111.2% ​ ​ ​ ​ ​ 100.0% ​ ​ ​ ​ ​ 112.8% ​ ​ ​ ​ ​ 100.0% ​ ​ ​ ​ ​ 112.0% ​ ​ ​ ​ ​ Enterprise Modifier (b) ​ ​ ​ ​ — ​ ​ ​ ​ ​ 121.4% ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 121.4% ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 121.4% ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 121.4% ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 121.4% ​ ​ ​ ​ ​ EAIP Payout % (a) x (b) ​ ​ ​ ​ — ​ ​ ​ ​ ​ 136.8% ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 134.9% ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 134.9% ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 136.8% ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 135.9% ​ ​ ​ ​ * Measurement of performance for each of the metrics is subject to certain automatic adjustments described above in “Annual Incentive Bonus.”

Executive compensation / fiscal 2026 incentive weights and actual payouts · Dépôt 30/09/2026

Annual Performance Share Units. In fiscal 2026, we did not grant annual PSUs to our NEOs.

Executive compensation / absence of fiscal 2026 annual PSU grants to NEOs · Dépôt 30/09/2026

On August 28, 2025 (fiscal 2026), the NEOs received the PRGP IP equity awards at the approximate value detailed below: ​ ​ Named Executive Officer ​ ​ Target Opportunity ($)(1) ​ ​ PRGP IP Results (%) ​ ​ PRGP IP Grant Value ($) ​ ​ RSUs Granted (#) ​ ​ ​ ​ Stéphane de La Faverie ​ ​ ​ $ 2,500,000 ​ ​ ​ ​ ​ 167.2% ​ ​ ​ ​ $ 4,180,000 ​ ​ ​ ​ ​ 45,549 ​ ​ ​ ​ ​ Akhil Shrivastava ​ ​ ​ $ 475,000 ​ ​ ​ ​ ​ 167.2% ​ ​ ​ ​ $ 794,200 ​ ​ ​ ​ ​ 8,655 ​ ​ ​ ​ ​ Jane Hertzmark Hudis ​ ​ ​ $ 1,114,000 ​ ​ ​ ​ ​ 167.2% ​ ​ ​ ​ $ 1,862,608 ​ ​ ​ ​ ​ 20,297 ​ ​ ​ ​ ​ Rashida La Lande ​ ​ ​ $ 625,000 ​ ​ ​ ​ ​ 167.2% ​ ​ ​ ​ $ 1,045,000 ​ ​ ​ ​ ​ 11,388 ​ ​ ​ ​ ​ Roberto Canevari ​ ​ ​ $ 588,750 ​ ​ ​ ​ ​ 167.2% ​ ​ ​ ​ $ 984,390 ​ ​ ​ ​ ​ 10,727 ​ ​ ​ ​ (1) Target opportunity reflects 25% of each executive’s fiscal 2026 annual target equity opportunity.

Executive compensation / PRGP equity awards actually granted August 28, 2025 · Dépôt 30/09/2026

The award cliff-vests in full on November 1, 2027, subject to continued employment and subject to acceleration upon the occurrence of certain events as described in “Potential Payments upon Termination of Employment or Change of Control.”

Executive compensation / PRGP award future vesting conditions · Dépôt 30/09/2026

The payout was determined against the following pre-established fiscal 2025 goals: ​ ​ ​ ​ ​ ​ ​ ​ Targets ​ ​ Actual Performance ​ ​ ​ ​ Metrics ​ ​ Weighting ​ ​ Threshold ​ ​ Target ​ ​ Maximum ​ ​ Actual ​ ​ % of Target ​ ​ Payout (% of Oppty) ​ ​ ​ ​ Enterprise Fiscal 2025 PRGP Net Benefits ​ ​ ​ ​ 70.0% ​ ​ ​ $528 million ​ ​ $660 million ​ ​ $924 million ​ ​ $1,004 million ​ ​ ​ ​ 152.1% ​ ​ ​ ​ ​ 200.0% ​ ​ ​ ​ ​ Enterprise Adoption and Leadership Key Performance Indicators ​ ​ ​ ​ Consumer Facing Spend as a % of Net Sales ​ ​ ​ ​ 10.0% ​ ​ ​ 32.0% ​ ​ 33.0% ​ ​ 34.0% ​ ​ 37.8% ​ ​ ​ ​ 114.5% ​ ​ ​ ​ ​ 200.0% ​ ​ ​ ​ ​ General & Administrative Costs as a % of Net Sales ​ ​ ​ ​ 10.0% ​ ​ ​ 31.0% ​ ​ 30.0% ​ ​ 29.0% ​ ​ 32.0% ​ ​ ​ ​ 106.7% ​ ​ ​ ​ ​ 0.0% ​ ​ ​ ​ ​ Leadership ​ ​ ​ ​ 10.0% ​ ​ ​ 53.0% ​ ​ 60.0% ​ ​ 75.0% ​ ​ 54.8% ​ ​ ​ ​ 91.3% ​ ​ ​ ​ ​ 72.1% ​ ​ ​ ​ ​ Aggregate Payout ​ ​ ​ ​ 167.2% ​ ​ ​ ​ ​ ​ 2026 Proxy Statement | 57 ​ TABLE OF CONTENTS Changes for Fiscal 2027.

Executive compensation / fiscal 2025 PRGP goals and actual outcomes · Dépôt 30/09/2026

Members of the Lauder family, some of whom are directors, executive officers and/or employees, beneficially own, directly or indirectly, as of August 12, 2026, shares of our Company's Class A Common Stock and Class B Common Stock having approximately 82% of the outstanding voting power of the Common Stock.

Business / Lauder-family voting control as of August 12, 2026 · Dépôt 19/08/2026

While we have voluntarily caused our Board of Directors to have a majority of independent directors and the written charters of our Nominating and ESG Committee and Compensation Committee to have the required provisions, we are not requiring our Nominating and ESG Committee and Compensation Committee to be comprised solely of independent directors.

Controlled-company disclosures / committee independence exemptions · Dépôt 19/08/2026

As of the Record Date, 9 of our 14 Board members (approximately 64%) are independent.

Governance / actual board independence at proxy record date · Dépôt 30/09/2026

We note that all the directors on our Audit Committee, including the Chair, are independent, as are the Chairs of our Nominating and ESG Committee and our Compensation Committee.

Governance / independent audit committee and committee chairs · Dépôt 30/09/2026

Our Stock Plan Subcommittee, which approves all equity grants to our executive officers including the CEO, is composed solely of independent directors.

Governance / independent stock-plan subcommittee · Dépôt 30/09/2026

Historique des publications

Sources

• filing-1 · Dépôt 19/08/2026
• filing-2 · Dépôt 01/05/2026
• filing-3 · Dépôt 30/09/2026
• filing-4 · Dépôt 20/08/2025
• filing-5 · Dépôt 19/08/2024
• filing-6 · Dépôt 05/02/2026