Net sales for the quarter reached $3.712 billion, a 5% year-over-year increase, while non-GAAP organic net sales climbed 2%. In the first nine months of fiscal 2026, fragrance organic sales rose double-digits and three of four regions grew, led by high single-digit gains in Mainland China.

Adjusted gross margin widened by 140 basis points to 76.4%, driven by the Profit Recovery and Growth Plan which offset incremental tariffs and inflation. Operating leverage and PRGP benefits also helped reduce non-consumer-facing expenses, supporting a 360 basis point jump in adjusted operating margin to 15.0%.

Reported operating margin contracted 190 basis points to 6.7% due to $127 million of restructuring charges and an $84 million loss contingency. Adjusted diluted EPS rose 40% to $0.91, while reported EPS fell 45% to $0.24, including a modest impact from Middle East disruptions.

Management now expects organic sales growth at the high end of its prior range and adjusted operating margin expansion of about 300 basis points by year end. For fiscal 2027, the company targets to accelerate organic growth and approach a 13% adjusted operating margin as One Operating Ecosystem is fully deployed.