Estée Lauder’s latest results suggest its long-awaited recovery is gathering pace, with five consecutive quarters of sales growth banishing memories of a three-year spell that wiped $100 billion off its market value.
But underneath the hood, the business is undergoing significant change, from how it sells its products to how it uses technology to understand consumers. “Our first quarter of fiscal 2027 marks another powerful step forward for The Estée Lauder Companies,” said president and chief executive officer Stéphane de La Faverie. “We are raising our fiscal 2027 outlook, reflecting both our strong start and our conviction in the future we are creating.”
La Faverie has every right to be bullish. Estée Lauder’s first-quarter numbers, released on Monday, showed that sales increased across key categories, including skin care and fragrance, with brands such as La Mer and Tom Ford performing strongly. In total, net sales rose by 6.7 per cent to $3.72 billion, up from $3.48 billion a year earlier and ahead of Wall Street’s consensus estimate of $3.65 billion.
The centrepiece of the turnaround has been Estée Lauder’s “Beauty Reimagined” strategy, launched in February 2025. It was introduced under de La Faverie, who had taken over as president and CEO the previous month. The plan was designed to transform the company’s operating model, making it “leaner, faster and more agile”, while expanding consumer reach, accelerating innovation and increasing consumer-facing investment to drive growth and profitability.
Among the initiatives was an expansion of its brands’ presence on platforms such as Amazon Premium Beauty and TikTok Shop, alongside new multi-brand retail partnerships.
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