Fragrance drives growth for Estée Lauder as makeup and haircare lag
The Estée Lauder Companies posted a 4% increase in first-quarter net sales to $3.5 billion (£2.6 billion), as gains in fragrance offset weaker results in makeup and haircare.
The company said it achieved prestige beauty share gains in several key markets during the three months ending 30 September 2025, led by "breakthrough, on-trend, and commercial innovations".
Skincare sales rose 3%, boosted by La Mer and Estée Lauder. Both brands benefited from higher sales in the company’s Asia travel retail business, which saw a significant recovery compared to the prior year.
Haircare sales also fell 7%, driven by Aveda, as the brand continued executing strategies to strengthen its long-term performance. These included planned reductions in online promotional activity and the exit from underperforming retail locations, including select freestanding stores.
Stéphane de La Faverie, President and CEO of The Estée Lauder Companies, said: "We had a strong start to FY26 as we execute on our Beauty Reimagined strategy - returning to organic sales growth, gaining prestige beauty share in a few key strategic areas of focus, and improving profitability.
"Encouragingly, we are building momentum across the organisation from the significant operational changes we have executed to-date to be faster and more agile.
"These results reinforce the confidence we have in our FY26 outlook - as we restore organic sales growth and expand our operating margin for the first time in four years."
The trading update follows Estée Lauder’s opening of a new Fragrance Atelier within its La Maison des Parfums on Rue Volney in Paris earlier this month, aimed at further accelerating the company’s strategic ambitions in luxury and prestige fragrances.
