Estée Lauder Reports 5% Sales Growth in Q4, Sets Ambitious Goals for Future

Estée Lauder Companies (ELC) announced a 5% increase in organic net sales for Q4 of fiscal 2026, reaching $3.63 billion, a performance that exceeded analysts' forecasts. The company also marked a full-year growth of 3%, totaling $15 billion, leading to a 9% rise in its shares during pre-market trading.

CEO Stéphane de La Faverie highlighted the success of the Beauty Reimagined strategy, initiated in February 2025, which aims to revitalize the organization for greater efficiency and consumer focus. This quarter marks the fourth consecutive period of growth for ELC, which has expanded its portfolio of billion-dollar brands from four to six, now including Jo Malone and Tom Ford alongside established names like Clinique and La Mer.

Fragrance sales soared by 10% in Q4, reaching $618 million, while skincare grew by 7% to $1.85 billion. Despite makeup sales inching up by 2% to $1 billion, haircare faced a slight decline. Regionally, the Americas led with a 5% revenue increase, primarily from North America, while Asia-Pacific revenues rose by 9%, aided by strong performance in Mainland China.

Looking forward to fiscal 2027, ELC has set an organic sales growth target of 3-5% and revised its adjusted operating margin expectations upwards. CFO Akhil Shrivastava emphasized the company's enhanced agility and focus, assuring investors of a robust strategy for sustainable growth.

Source: www.vogue.com