EL

MKT CAP —P/E 211.6DIV YIELD 1.35%FCF YIELD —REV TTM $15B +5.0%NET INCOME $182MNET DEBT $4.6B52W 67.23 – 119.61SEC XBRL · TTM TO Invalid Date

How EL rewrote its risk factors

10-K ITEM 1A · FY2025 → FY2026

Text kept

79%

of sentences unchanged

Added

new sentences

Dropped

sentences removed

Length

+114

words, now 5,792

New in FY2026

Our ability to compete also depends on the continued strength of our brands, our ability to attract and retain key talent and other personnel, the efficiency of our manufacturing and distribution network, and our ability to maintain and protect our intellectual property and those other rights used in our business.
Consolidation, liquidation or other changes in the retail trade, from these or other factors, may result in us becoming increasingly dependent on key retailers and could result in an increased risk related to the concentration of our customers.
A severe, adverse impact on the business operations of our customers, including changes to the markets or channels in which our products are sold, could have a corresponding material adverse effect on us.
Achieving our long-term strategy will require investment in new capabilities, brands, categories, distribution channels, supply chain facilities, technologies, including AI and data analytics, and emerging and more mature geographic markets.
We are required at least annually, or as facts and circumstances exist, to test goodwill and other intangible assets with indefinite lives to determine if impairment has occurred, as well as assess the recoverability of other intangible assets, and have recorded goodwill and other intangible asset impairment charges as required.
There continues to be focus from certain investors, customers, consumers, regulators, employees, and other stakeholders regarding social impact, sustainability, and other environmental, social and governance ("ESG") matters.
From time to time, we announce certain initiatives, including goals and commitments, regarding our focus areas, including environmental and climate matters; packaging; sourcing; product formulation; social investments; and inclusion.
Moreover, the standards by which these efforts are measured are developing and evolving, often rely on methodologies, standards and data that are subject to varying interpretations, and certain areas are subject to assumptions that could change over time.
These applications are becoming increasingly important in our operations over time.
Many of our products may be considered discretionary items for consumers, and consumer purchases of discretionary items tend to decline during recessionary periods, when disposable income is lower, and may impact sales of our products.
While we may take action to identify and remove counterfeit versions of our products from the market, these actions may not be successful.
We operate on a global basis, and maintain offices across our geographic regions and have key operational facilities located inside and outside the United States that manufacture, warehouse or distribute goods for sale throughout the world.
Such risks include industrial accidents, environmental events, strikes and other labor disputes, capacity constraints, disruptions in ingredient, material or packaging supply or availability of natural resources (e.g., water), global shortages, disruptions in supply chain or information technology, loss or impairment of key manufacturing or distribution sites or suppliers, product quality control, safety, increase in commodity prices and energy costs, licensing requirements and other regulatory issues, as well as natural disasters, outages due to fire, floods, power loss, telecommunications failures, break-ins and other events or external factors over which neither we nor our suppliers have control.
As we outsource functions and consolidate service providers, we become more dependent on the entities performing those functions and services.
In some cases, this requires the outsourcing of functions or parts of functions that we believe can be performed more effectively by external service providers, as well as the consolidation of service providers to drive efficiencies.
The failure of one or more such providers to deliver the expected services, provide them on a timely basis or to provide them at the prices or service levels that we expect, the failure of one or more of such providers to meet our performance standards and expectations, including with respect to data security, compliance with laws, disruptions arising from the transition of functions to an outsourcing provider or other service providers, or the costs incurred in returning these outsourced functions to being performed under our management and direct control, could have a material adverse effect on our business.
We are, and may in the future become, party to litigation, other disputes or regulatory proceedings across a wide range of matters, including ones relating to product liability matters (including asbestos-related claims), advertising, regulatory, labor and employment, pensions and benefits, intellectual property, real estate, environmental, trade relations (including tariffs and duties), securities, tax and privacy.
We are mindful of the evolving litigation landscape related to asbestos-related claims, and continue to monitor trends in this area.
We rely on information technology that supports our business processes, including research and development, manufacturing and distribution, marketing, sales, order processing, consumer experiences, human resource management, finance and internal and external communications throughout the world.
In addition, some of our suppliers, vendors, service providers, cloud solution providers and customers have in the past experienced, and may in the future experience, such incidents, which could in turn disrupt our business or compromise the security of our Company data.
Our Company's continued expansion and reliance on third parties may further increase that risk.
As of August 12, 2026, members of the Lauder family beneficially own, directly or indirectly, shares of the Company’s Class A Common Stock (with one vote per share) and Class B Common Stock (with 10 votes per share) having approximately 82% of the outstanding voting power of the Common Stock.

Gone since FY2025

Our ability to compete also depends on the continued strength of our brands, our ability to attract and retain key talent and other personnel, the efficiency of our manufacturing facilities and distribution network, and our ability to maintain and protect our intellectual property and those other rights used in our business.
Consolidation or liquidation in the retail trade, from these or other factors, may result in us becoming increasingly dependent on key retailers and could result in an increased risk related to the concentration of our customers.
A severe, adverse impact on the business operations of our customers could have a corresponding material adverse effect on us.
Achieving our long-term strategy will require investment in new capabilities, brands, categories, distribution channels, supply chain facilities, technologies and emerging and more mature geographic markets.
We are required at least annually, or as facts and circumstances exist, to test goodwill and other intangible assets with indefinite lives to determine if impairment has occurred, as well as assess the recoverability of other intangible assets, and have recorded goodwill and other intangible asset impairment charges in each of the last few fiscal years.
There continues to be a focus from certain investors, customers, consumers, regulators, employees, and other stakeholders concerning social impact and sustainability and other ESG matters.
From time to time, we announce certain initiatives, including goals and commitments, regarding our focus areas, which include environmental and climate matters; packaging; sourcing; product formulation; social investments; and inclusion.
Moreover, the standards by which ESG efforts and related matters are measured are developing and evolving, and certain areas are subject to assumptions that could change over time.
These applications may become increasingly important in our operations over time.
Consumer purchases of discretionary items tend to decline during recessionary periods, when disposable income is lower, and may impact sales of our products.
We operate on a global basis, with a substantial majority of our net sales and operating income generated outside the United States.
We maintain offices in over 50 countries and have key operational facilities located inside and outside the United States that manufacture, warehouse or distribute goods for sale throughout the world.
Such risks include industrial accidents, environmental events, strikes and other labor disputes, capacity constraints, disruptions in ingredient, material or packaging supply or availability of natural resources (e.g., water), as well as global shortages, disruptions in supply chain or information technology, loss or impairment of key manufacturing or distribution sites or suppliers, product quality control, safety, increase in commodity prices and energy costs, licensing requirements and other regulatory issues, as well as natural disasters, outages due to fire, floods, power loss, telecommunications failures, break-ins and other events or external factors over which we have no control.
As we outsource functions, we become more dependent on the entities performing those functions.
In some cases, this requires the outsourcing of functions or parts of functions that we believe can be performed more effectively by external service providers.
The failure of one or more such providers to deliver the expected services, provide them on a timely basis or to provide them at the prices or service levels that we expect, the failure of one or more of such providers to meet our performance standards and expectations, including with respect to data security, compliance with laws, disruptions arising from the transition of functions to an outsourcing provider, or the costs incurred in returning these outsourced functions to being performed under our management and direct control, could have a material adverse effect on our business.
We are, and may in the future become, party to litigation, other disputes or regulatory proceedings across a wide range of matters, including ones relating to product liability matters (including asbestos-related claims), advertising, regulatory, employment, intellectual property, real estate, environmental, trade relations, securities, tax and privacy.
We rely on information technology that supports our business processes, including research and development, product development, production, distribution, marketing, sales, order processing, consumer experiences, human resource management, finance and internal and external communications throughout the world.
In addition, some of our suppliers, vendors, service providers, cloud solution providers and customers have in the past experienced, and may in the future experience, such incidents, which could in turn disrupt our business.
As of August 13, 2025, members of the Lauder family beneficially own, directly or indirectly, shares of the Company’s Class A Common Stock (with one vote per share) and Class B Common Stock (with 10 votes per share) having approximately 84% of the outstanding voting power of the Common Stock.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2025 ↗, FY2026 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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