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Estée Lauder Reports 7% Sales Growth and Raises Outlook

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Estée Lauder Reports 7% Sales Growth and Raises Outlook

THE WHAT? The Estée Lauder Companies reported a 7 percent increase in first-quarter fiscal 2027 net sales to US$3.72 billion, supported by growth across international markets, improved profitability and progress under its Beauty Reimagined transformation strategy.

THE DETAILS Organic sales increased 6 percent, while operating profit rose to US$408 million from US$169 million a year earlier. Operating margin improved to 11 percent from 4.9 percent, reflecting cost efficiencies, manufacturing improvements and strategic pricing. Fragrance delivered the strongest category performance, with sales increasing 19 percent to US$861 million, followed by skincare, up 5 percent to US$1.65 billion, and make-up, up 2 percent to US$1.05 billion. The company also expanded its digital distribution across Amazon and TikTok Shop, increased consumer-facing investment by 8 percent and raised its full-year fiscal 2027 sales, margin and earnings outlook. 

THE WHY? The results indicate improving financial performance at Estée Lauder as restructuring, cost management and international distribution expansion begin to support its turnaround strategy. Strong fragrance demand and recovering skincare sales are contributing to growth, while investment in digital commerce, product innovation and operational efficiency remains central to strengthening the group’s competitiveness across the global prestige cosmetics market.



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