Estee Lauder Companies (EL) risk factors, FY2025 10-K

Estee Lauder Companies's FY2025 10-K, filed Aug 20, 2025, lists 19 risk factors in 4 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
194 groups
Section length
6k wordsItem 1A

Estee Lauder Companies's biggest risks in the FY2025 10-K

  • Estee Lauder's risk profile is heavily shaped by travel retail concentration, global supply chain dependencies, and family voting control.
  • The company faces intense competition from indie brands, shifting beauty trends, and execution risks tied to restructuring and AI adoption.

The risks most specific to Estee Lauder Companies

  • Risks related to our Business and our Industry

    Our inability to anticipate and respond to market trends and changes in consumer preferences could adversely affect our business

    Our success depends on our ability to anticipate, gauge and react in a timely and cost-effective manner to changes in consumer preferences for skin care, makeup, fragrance and hair care products.

  • Risks related to our Business and our Industry

    Events that impact consumers’ willingness or ability to travel or purchase our products while traveling may impact our business, including travel retail, a significant contributor to our overall results, and our strategy to market and sell products to international travelers at their destinations

    Events that impact consumers' willingness or ability to travel or purchase our products while traveling may impact travel retail, a significant contributor to our overall results.

  • Risks related to our Business and our Industry

    Our success depends, in part, on our key personnel

    We are still in the process of implementing a change in our organizational design, including through Beauty Reimagined and our Profit Recovery Plan.

  • Risks related to our Business and our Industry

    A disruption in our operations, including supply chain, could adversely affect our business

    We are subject to risks of industrial accidents, environmental events, strikes, capacity constraints, and disruptions in ingredient, material, or packaging supply or availability of natural resources like water.

  • Risks related to Legal and Regulatory Matters

    Disputes and other legal or regulatory proceedings could adversely affect our business

    We are party to litigation, other disputes or regulatory proceedings including ones relating to product liability matters such as asbestos-related claims.

  • Risks related to our Securities and our Ownership Structure

    We are controlled by the Lauder family. As a result, the Lauder family has the ability to prevent or cause a change in control or approve, prevent or influence certain actions by us

    Members of the Lauder family beneficially own Class A and Class B Common Stock having approximately 84% of the outstanding voting power.

All 19 risk factors

Headings as the filing states them, in filing order.

Risks related to our Business and our Industry

  1. 01The beauty business is highly competitive, and if we are unable to compete effectively our business will suffer
  2. 02Our inability to anticipate and respond to market trends and changes in consumer preferences could adversely affect our business
  3. 03Our future success depends, in part, on our ability to achieve our long-term strategy
  4. 04Acquisitions, divestitures and other strategic actions may expose us to additional risks
  5. 05Our business could be negatively impacted by social impact and sustainability matters
  6. 06We use AI, and challenges with properly managing its use could have an adverse impact on our business
  7. 07A general economic downturn, or disruption in business conditions may adversely affect our business including consumer purchases of discretionary items and/or the financial strength of our customers that are retailers
  8. 08Events that impact consumers’ willingness or ability to travel or purchase our products while traveling may impact our business, including travel retail, a significant contributor to our overall results, and our strategy to market and sell products to international travelers at their destinations
  9. 09Our success depends, in part, on the quality, efficacy and safety of our products
  10. 10Our success depends, in part, on our key personnel
  11. 11We are subject to risks related to the global scope of our operations
  12. 12A disruption in our operations, including supply chain, could adversely affect our business
  13. 13As we outsource functions, we become more dependent on the entities performing those functions

Risks related to Legal and Regulatory Matters

  1. 14Changes in laws, regulations and policies could adversely affect our business
  2. 15Disputes and other legal or regulatory proceedings could adversely affect our business
  3. 16Government reviews, inquiries, investigations and actions could harm our business

Risks related to Technology and Cybersecurity Matters

  1. 17The compromise or interruption of, or damage to, our information technology (including our operational technology and websites) by cybersecurity incidents, data security breaches, other security problems, design defects or system failures could have a material negative impact on our business

Risks related to our Securities and our Ownership Structure

  1. 18The trading prices of our securities periodically may rise or fall based on the accuracy of predictions of our financial performance
  2. 19We are controlled by the Lauder family. As a result, the Lauder family has the ability to prevent or cause a change in control or approve, prevent or influence certain actions by us

Other Estee Lauder Companies 10-Ks

  • FY2026 10-K risk factors
    20 risks1 new3 reworded

    AI use is newly tied to reputation, competition, talent, retailers, manufacturing, distribution, and intellectual-property protection.

    Filed Aug 19, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.