Estée Lauder’s Q2 FY26 results demonstrate tangible progress within its multi-year transformation. The company reported net sales of $4.23bn, a 4% year-over-year increase at constant rate, while raising its full-year fiscal 2026 outlook.
This performance was geographically uneven, revealing a clear divergence in regional momentum. Mainland China stood out with a 13% organic sales growth, signaling a significant recovery in that critical market. Conversely, organic sales in the Americas were nearly flat, and the EUKEM region saw only a modest 2% increase.
Category performance further clarifies the drivers of the recovery. Skincare, the largest portfolio segment, grew 6%, led by La Mer and The Ordinary. The fragrance category also advanced 6%, fueled by luxury brands like Tom Ford and Le Labo. Makeup revenues declined 1%, as strength from M·A·C was offset by challenges in the core Estée Lauder line.
Management now anticipates restoring organic sales growth this fiscal year, which would be a first in four years. However, the outlook is tempered by expected headwinds, including approximately $100 million in tariff-related profit pressure.