Estée Lauder Raises FY 2027 Outlook as Q1 Sales Rise to $3.7B, Driven by Fragrance Growth

by · WWD
Estée Lauder Glimmer Eau de ParfumJanelle Jones/WWD

The Estée Lauder Cos. raised its full year outlook as sales continued to bounce back.

Net sales increased 7 percent to $3.7 billion for the first quarter ended Sept. 30, the beauty company, whose brands include MAC, Tom Ford, Clinique and The Ordinary, said Monday. Wall Street analysts had been expecting $3.64 billion.

Within that, skin care net sales increased 4 percent, primarily driven by growth from La Mer and The Ordinary; makeup net sales grew 1 percent, boosted by MAC, but partially offset by a decline at Estée Lauder; fragrance net sales increased 20 percent, driven by double-digit growth at Le Labo, Tom Ford, Jo Malone London, Kilian Paris and Estée Lauder, and hair care net sales were flat, primarily driven by growth from The Ordinary, offset by a decline at Aveda.

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On a geographic basis, organic net sales grew by 4 percent in the Amercias, 4 percent in Europe and the Middle East, 10 percent in Asia/ Pacific and 9 percent in Mainland China.

Adjusted diluted net earnings per common share increased to 72 cents, compared with 32 cents in the same period a year earlier.

As a result, the company is raising its fiscal 2027 full-year outlook for organic net sales growth of 4 percent to 5.5 percent, ranging from the mid-point to above the high-end of the previously communicated range of 3 percent to 5 percent. Adjusted diluted net earnings per common share are expected to range between $3.20 and $3.45, up from the prior estimate of $3.10 to $3.35.

“Our first quarter of fiscal 2027 marks another powerful step forward for The Estée Lauder Companies. Growth is accelerating, profitability is strengthening significantly, and the impact of Beauty Reimagined is becoming increasingly evident across our business. We are bringing more breakthrough innovation to consumers, amplifying the desirability of our brands with bold, high impact campaigns, and building a faster, more agile organization that is converting momentum into stronger financial performance,” said Stéphane de La Faverie, president and chief executive officer.

“We have moved beyond restoring growth. We are building diverse drivers for sustained profitable growth. The energy and determination of our teams, combined with the strength of our brands and the progress of our transformation, give me greater confidence than ever in the opportunities that lie ahead. We are raising our fiscal 2027 outlook, reflecting both our strong start and our conviction in the future we are creating.”