The Estée Lauder Cos. raised its fiscal 2027 outlook after reporting stronger first-quarter results. Net sales rose 7% to $3.7 billion in the quarter ended Sept. 30, exceeding Wall Street analysts’ expectation of $3.64 billion.
Fragrance was the company’s strongest-performing category, with net sales up 20%. Growth was driven by double-digit gains at Le Labo, Tom Ford, Jo Malone London, Kilian Paris and Estée Lauder.
Skin care sales increased 4%, supported mainly by La Mer and The Ordinary. Makeup sales grew 1%, helped by MAC but partly offset by a decline at Estée Lauder. Hair care sales were flat, as growth from The Ordinary was offset by a decline at Aveda.
Organic net sales increased 4% in the Americas, 4% in Europe and the Middle East, 10% in Asia-Pacific and 9% in Mainland China. Adjusted diluted net earnings per common share rose to 72 cents, compared with 32 cents a year earlier.
The company now expects fiscal 2027 organic net sales growth of 4% to 5.5%, compared with its previous range of 3% to 5%. Its forecast for adjusted diluted earnings per common share has also increased to between $3.20 and $3.45, from an earlier estimate of $3.10 to $3.35.
Stéphane de La Faverie, Estée Lauder’s president and chief executive officer, said the results reflected accelerating growth, stronger profitability and progress from the company’s Beauty Reimagined initiative. He added that the company was building multiple sources of sustained profitable growth through its brands, innovation and organizational changes.
Sources: WWD.