Luxury Figures

Estée Lauder Regains Momentum, Driven by Fragrance

By Eva Morletto19 août 2026

Estée Lauder’s turnaround is beginning to show tangible results. After several challenging years, the American beauty group has regained momentum. The company has just reported its 2026 full year results, posting revenue of $15.05 billion, up 5% on a reported basis and 3% organically.

The “Beauty Reimagined” plan is at the heart of the Estée Lauder Group's transformation.

The Estée Lauder Companies’ fourth quarter revenue came in above financial analysts’ expectations, reaching $3.63 billion compared with the $3.54 billion expected. Growth accelerated to 6% during the quarter, marking the company’s fourth consecutive quarter of growth.

Operating profit posted a remarkable 47% increase, reaching $1.69 billion.

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Fragrance Drives Growth

Performance remains mixed across the group’s different business segments. Fragrance has emerged as the company’s main growth driver, increasing 10%, notably thanks to brands such as Le Labo, Tom Ford and Kilian Paris. Skincare grew 4%, supported by prestigious brands including La Mer and The Ordinary, while makeup remained broadly stable and haircare declined 1%.

Estée Lauder says it has regained market share in mainland China, where a broader slowdown in demand for foreign luxury goods had weighed on the group for several quarters. In the fourth quarter, sales in the region increased by 7%.

“Beauty Reimagined” at the Heart of its Transformation

The improvement comes largely as the company implements its Beauty Reimagined plan, under the leadership of CEO Stéphane de la Faverie, who has headed Estée Lauder since January 1, 2025.

The turnaround and restructuring program is expected to generate approximately $1.2 billion in annual savings and result in a net reduction of around 10,000 positions. The strategy also calls for an accelerated diversification of distribution channels.

Amazon and TikTok Shop at the Heart of the New Strategy

Thirteen brands in the portfolio are now available on Amazon across eleven markets, while twelve brands are present on TikTok Shop in nine countries. Estée Lauder has also opened 33 additional stores dedicated to fragrance, notably for brands such as Le Labo and Jo Malone London.

For 2027, the group is now targeting organic growth of between 3% and 5%.

Key points:

- Estée Lauder reports $15.05 billion in revenue, up 5%, with operating profit rising sharply (+47%).

- Fragrance grew by 10%, becoming the group’s main growth driver, led by Le Labo, Tom Ford and Kilian Paris.

- The “Beauty Reimagined” plan is accelerating restructuring and the development of Amazon, TikTok Shop, and dedicated fragrance boutiques.

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