Estée Lauder Lifts FY2027 Outlook as Q1 Sales Hit $3.7B

The Estée Lauder Cos. raised its fiscal 2027 outlook after net sales climbed 7 percent to $3.7 billion in the first quarter ended Sept. 30, beating the $3.64 billion that Wall Street analysts had expected.

The company, whose portfolio includes MAC, Tom Ford, Clinique and The Ordinary, reported the results Monday. The quarter marks a continued rebound in sales and a sharp improvement in profitability, and it prompted management to lift its full-year guidance for both revenue and earnings.

How did each category perform?

Fragrance drove the quarter. Category net sales rose 20 percent, powered by double-digit growth at Le Labo, Tom Ford, Jo Malone London, Kilian Paris and Estée Lauder. No other category came close to that pace.

• Skin care: net sales increased 4 percent, primarily driven by La Mer and The Ordinary.
• Makeup: net sales grew 1 percent, boosted by MAC but partially offset by a decline at the Estée Lauder brand.
• Hair care: net sales were flat, with growth from The Ordinary offset by a decline at Aveda.

Where is the growth coming from?

Asia led the regions. Organic net sales grew 10 percent in Asia/Pacific and 9 percent in Mainland China, according to the company. The Americas grew 4 percent, matching Europe and the Middle East.

Profitability strengthened faster than sales. Adjusted diluted net earnings per common share reached 72 cents, more than double the 32 cents reported in the same period a year earlier.

What changes in the fiscal 2027 guidance?

The company now expects organic net sales growth of 4 percent to 5.5 percent for the full fiscal year. That range runs from the midpoint to above the high end of its previously communicated 3 percent to 5 percent target.

Adjusted diluted EPS guidance rose to between $3.20 and $3.45, up from the prior estimate of $3.10 to $3.35.

What did the CEO say?

President and chief executive officer Stéphane de La Faverie tied the results to the company's broader turnaround plan, Beauty Reimagined.

"Our first quarter of fiscal 2027 marks another powerful step forward for The Estée Lauder Companies. Growth is accelerating, profitability is strengthening significantly, and the impact of Beauty Reimagined is becoming increasingly evident across our business," de La Faverie said. "We are bringing more breakthrough innovation to consumers, amplifying the desirability of our brands with bold, high impact campaigns, and building a faster, more agile organization that is converting momentum into stronger financial performance."

He framed the raised outlook as a shift from recovery to durable expansion. "We have moved beyond restoring growth. We are building diverse drivers for sustained profitable growth," he said. "We are raising our fiscal 2027 outlook, reflecting both our strong start and our conviction in the future we are creating."

Why does it matter?

Fragrance has become the clearest engine of the company's recovery, offsetting flat hair care and single-digit makeup growth. With Mainland China growing at 9 percent and earnings more than doubling year over year, the raised guidance signals that management expects the momentum to hold through fiscal 2027 rather than fade after one strong quarter.