Estée Lauder Companies started FY27 with reported sales up 7% to $3.72bn and organic sales up 6%. Net eearnings increased to $233m from $47m.
Fragrance was the fastest-growing category, with organic sales up 20% to $861m, or 23% of group sales. Growth came from Luxury Brands including Le Labo, TOM FORD, Jo Malone London and KILIAN PARIS, as well as Estée Lauder.
Skincare grew 4% to $1.65bn, 44% of sales, led by La Mer and The Ordinary. Makeup rose 1% to $1.05bn, 28% of sales, with M·A·C gains partly offset by a decline from Estée Lauder. Haircare was flat at $128m, 3% of sales, as growth from The Ordinary offset lower Aveda shipments linked to supply-chain challenges.
Organic sales grew in every reported region. The Americas rose 4% to $1.23bn, EUKEM 4% to $923m, Asia/Pacific 10% to $952m, and Mainland China 9% to $614m. Travel retail, including airport replenishment and improved online sales in Hainan, supported Asia/Pacific. In China, innovation, existing products, key shopping moments and expanded consumer reach contributed to growth. Estée Lauder reported prestige beauty share gains in Mainland China, Japan, Korea and Western Europe, and volume share gains in the US.
The company raised its FY27 outlook. It now expects organic sales growth of 4.0% to 5.5%, adjusted operating margin of 12.9% to 13.7%, and adjusted diluted EPS of $3.20 to $3.45.
