Estée Lauder raises annual outlook as Q1 sales grow 7%

Estée Lauder has raised its annual sales and profit forecasts following a first-quarter performance that exceeded analyst expectations. Net sales for the three months ending September 30, 2026, rose 7% to $3.72 billion, surpassing the $3.65 billion projected by analysts.

Growth was driven largely by the fragrance category, which saw a 20% increase fueled by luxury brands such as Le Labo, Tom Ford, Jo Malone London, and Kilian Paris. Skincare sales grew by 4%, supported by La Mer and The Ordinary, while makeup sales saw a 1% increase. Geographically, organic sales in China rose by 9%, and the Americas returned to growth with a 4% increase.

CEO Stéphane de La Faverie attributed the results to the company’s “Beauty Reimagined” turnaround strategy. This initiative focuses on reducing reliance on discounts, increasing marketing investment, and expanding distribution through channels like Amazon and TikTok Shop. The company now expects organic sales growth for the 2027 fiscal year to be between 4% and 5.5%, up from its previous guidance of 3% to 5%.