In the first quarter of its 2026–2027 financial year, Estée Lauder reported a 7% increase in revenue to $3.72 billion, while net profit rose fivefold. Prestige fragrances and a recovery in the Chinese market are driving the group's rebound.
The recovery at Estée Lauder Companies is gaining momentum. In the first quarter of its 2026–2027 financial year, which ended in late September, the group behind La Mer, Clinique, M·A·C and Jo Malone London generated revenue of $3.72 billion, up 7% (+6% on an organic basis).
Net profit reached $233 million, compared with $47 million in the same period a year earlier. These results point to the first positive effects of the Beauty Reimagined strategy, launched just over a year ago by CEO Stéphane de La Faverie.
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Prestige Fragrances Lead the Way
One of the group's key growth drivers is fragrance, which recorded the strongest performance, with organic growth of 20% and revenue reaching $861 million. Le Labo, Tom Ford, Jo Malone London and Kilian Paris are benefiting from growing demand for high-end fragrances, particularly among younger affluent consumers.
New launches, including Le Labo's Shiu 25 in Beijing and Tom Ford's Tobacco Chocolat, have also contributed to this momentum while reinforcing the distinctive identities of the group's various brands.
The skincare segment also posted growth, rising 4% on an organic basis, supported by flagship brand La Mer and The Ordinary, which has rapidly established itself as a must-have among Generation Z consumers.
Another encouraging sign is the recovery in sales in China, where revenue jumped 9% in mainland China. Across the wider Asia-Pacific region, growth reached 10%, driven by an improvement in travel retail. The Americas, meanwhile, recorded a 4% increase.
A Mixed Performance for Makeup
Despite this growth, the overall picture remains mixed. Makeup recorded organic growth of just 1%. Sales at M·A·C have struggled to offset the decline at Estée Lauder, while haircare remained flat.
To strengthen its distribution network, the group plans to expand its presence on Amazon and TikTok Shop, while accelerating the pace of innovation and continuing to streamline costs.
Estée Lauder Companies has also completed the acquisition of the remaining shares in Forest Essentials, an Indian brand specialising in Ayurvedic beauty. The deal highlights the group's ambition to tap into local markets with significant growth potential.
Optimism is now returning, with the group forecasting organic sales growth of between 4% and 5.5% for the 2026–2027 financial year. For the US beauty giant, the most challenging phase appears to be behind it. The question now is whether these results signal the beginning of a sustained recovery or merely a temporary improvement.
Key points:
- Revenue reached $3.72 billion, up 7%, while net profit climbed to $233 million.
- The fragrance segment posted 20% organic growth, while sales in mainland China rebounded by 9%.
- Through its acquisition of Forest Essentials in India and the expansion of its online distribution channels, Estée Lauder is targeting new markets and sales opportunities.
- Revenue reached $3.72 billion, up 7%, while net profit climbed to $233 million.
- The fragrance segment posted 20% organic growth, while sales in mainland China rebounded by 9%.
- Through its acquisition of Forest Essentials in India and the expansion of its online distribution channels, Estée Lauder is targeting new markets and sales opportunities.
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