Estée Lauder sales drop but forecasts growth comeback
The Estée Lauder Companies has reported a 10% decrease in sales to $3.5 billion (£2.6 billion) for the third quarter ending 31 March 2025, but forecasts a return to growth in FY26.
It comes after the company launched a new strategic plan in February 2025 to restore sustainable growth and recover profit.
Actions under the plan are expected to be executed in FY25 and FY26 and completed in FY27.
For Q3, Estée Lauder shared the following results:
Skincare sales decreased 11%, primarily due to impacts from challenging retail environments of its Asia travel retail business, which drove declines from Estée Lauder and La Mer.
Meanwhile, makeup sales dropped 7%, driven by a weaker performance from MAC Cosmetics and Estée Lauder.
Haircare sales decreased 10%, driven by Aveda, reflecting continued softness in the company’s salon and freestanding stores channels. Meanwhile, fragrance sales were down 1%, attributed to declines from Clinique and Estée Lauder.
Sales in the Americas was down 6% to $1.05 billion (£787 million), while EMEA dropped 18% to $1.3 billion (£974 million) and Asia/Pacific declined 3% to $1.1 billion (£824 million).
Stéphane de La Faverie, President and CEO at The Estée Lauder Companies, said: "We are moving decisively and building momentum as we bring our 'Beauty Reimagined' strategic vision to life across its five key priorities.
"Our global business organic sales trends, excluding travel retail, showed sequential improvement. With the strategic reset of our travel retail business well underway to better reflect recent industry trends and market conditions, and provided there is meaningful resolution of the recently enacted tariffs to mitigate potential related negative impacts, we are confident in our ability to return to sales growth in fiscal 2026."
