Estée Lauder Q4
Estée Lauder exceeds Q4 expectations with fragrance-led growth
The Estée Lauder Companies exceeded market expectations in the fourth quarter of fiscal 2026, with fragrance-led growth helping to accelerate its turnaround. The company reported fourth-quarter net sales of USD 3.63 billion, a 3% increase, and organic sales growth of 5%, outperforming analysts' expectations of USD 3.54 billion.
Fourth-quarter results
According to the company's report, adjusted diluted earnings per share reached USD 0.39, ahead of the USD 0.32 expected by analysts. For the full fiscal year ended June 30, 2026, net sales increased 3% to USD 15.0 billion, with organic growth also reaching 3%.
The Estée Lauder Companies' CEO, Stéphane de La Faverie, described the company's strategy as a successful playbook built around premium positioning, selective expansion, innovation, and stronger consumer-facing investment. As reported by Premium Beauty News, the company's fragrance category continued to be its strongest-performing category.
Fragrance and skincare performance
Prestige fragrance saw 10% organic growth in the fourth quarter, driven by brands including Le Labo and Tom Ford. Le Labo benefited from expanded distribution and targeted efforts to reach new consumers. Industry analysts view prestige fragrance as one of beauty's most resilient segments, particularly among younger consumers across genders.
Makeup and hair care recovery
Makeup sales remained flat in the quarter, although M·A·C's expansion into Sephora stores in the United States delivered strong results and helped boost brand visibility. Hair care sales declined 1%, primarily reflecting weaker performance at Aveda, although growth at The Ordinary helped partially offset the decline. The company acknowledged that makeup and hair care still require improvement.
The company's outlook for fiscal 2027 includes adjusted diluted earnings per share between USD 3.10 and USD 3.35, with the midpoint above analysts' consensus estimate of USD 3.18. A key pillar of the company's outlook is renewed confidence in China, where the group expects high organic sales growth supported by new product launches and increased consumer investment. The company has deliberately reduced promotional activity in the market, cutting back on discounts and special offers in favor of strengthening brand equity. The group also disclosed a US$38 million tariff refund benefit recorded in the fourth quarter, which partially offset an estimated US$102 million full-year impact from incremental tariffs.
