Estée Lauder has raised its annual sales and profit forecasts following stronger demand for luxury fragrances and skincare, which helped it deliver better-than-expected results.
The own company, which owns the likes of MAC, Clinique and Jo Malone London, reported a seven per cent increase in net sales to $3.72bn for the three months to 30 September, ahead of analysts’ expectations of $3.65bn.
Organic sales rose six per cent, while adjusted operating profit jumped 76 per cent to $449m.
Fragrance was its strongest-performing category, with sales up 20 per cent, driven by double-digit growth across luxury brands including Le Labo, Tom Ford, Jo Malone London and Kilian Paris.
Skincare sales increased four per cent, supported by La Mer and The Ordinary, while makeup edged up one per cent, helped by MAC.
The group also recorded improving performance in China, where organic sales climbed nine per cent, while the Americas returned to growth with a four per cent increase.
Estée Lauder chief executive Stéphane de La Faverie said the business was reducing its reliance on discounts and promotions, instead increasing investment in marketing and product launches to attract customers.
The company increased consumer-facing investment by eight per cent during the quarter as part of its Beauty Reimagined turnaround strategy.
In the UK, the group has widened distribution for Jo Malone London, launching the fragrance brand at Boots in August and Space NK in September.
It has also expanded its presence across online marketplaces, with 13 brands now available on Amazon across 17 markets and 15 brands selling through TikTok Shop in 11 markets.
De La Faverie said the company had “moved beyond restoring growth” and was now focused on delivering sustained profitability.
Estée Lauder expects organic sales to grow between four per cent and 5.5 per cent in its 2027 financial year, up from its previous forecast of three per cent to five per cent.
It also raised its adjusted earnings forecast to between $3.20 and $3.45 per share, compared with its earlier guidance of $3.10 to $3.35.
The company said it remained cautious about the broader economic environment, but expects continued growth in fragrance and skincare, alongside a recovery in makeup sales.
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