Estée Lauder annual sales rise as skincare and fragrance drive growth

The Estée Lauder Companies reported a 5% increase in net sales to $15 billion for the fiscal year ended 30 June 2026, supported by new product launches, brand expansion, and initiatives aimed at improving profitability and driving consumer acquisition.

The annual performance reflects stronger momentum in fragrance and continued growth in skincare, while make-up remained broadly stable and hair care declined modestly.

Skincare net sales increased 4%, primarily reflecting growth from La Mer, The Ordinary and Estée Lauder.

The portfolio continued to focus on advanced, high-performance skincare, supported by product launches such as La Mer Balancing Infused Emulsion in the fourth quarter. The Ordinary also introduced Caffeine Solution 5% + EGCG Eye Serum, supporting the brand’s focus on accessible price points and new consumer acquisition.

Make-up net sales were broadly flat, although the rate of growth improved by more than 500 basis points compared with the prior year. Growth from MAC Cosmetics and Tom Ford was offset by declines at Bobbi Brown and Too Faced.

As part of this, MAC Cosmetics continued to respond to consumer trends and cultural developments, including the fourth-quarter launch of Skinfinish Colourstruck Blush.

Fragrance net sales lifted 10%, supported by double-digit growth across the company’s luxury brands, with Le Labo, Tom Ford and Kilian Paris among the key contributors.

Haircare net sales declined 1%, primarily due to lower sales from Aveda, partly offset by growth from The Ordinary.

Overall, reported and adjusted gross margin increased 150 basis points to 75.5%, mainly driven by benefits from the Company’s Profit Recovery & Growth Plan and, to a lesser extent, sales leverage. These gains were partly offset by inflation and incremental tariffs, net of refunds received.

President and CEO Stéphane de La Faverie said: "I am incredibly proud of our team for delivering fiscal 2026 results ahead of the expectations we had to start the year.

"For fiscal 2027, we are affirming our confidence to accelerate organic sales growth. In addition, we are raising our outlook for an even stronger adjusted operating margin, as we double down on our strengths to further diversify growth across product categories and geographies, including accelerating growth in North America."