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Estée Lauder Companies raised its fiscal 2027 organic sales growth forecast to 4%–5.5% after first-quarter net sales increased 7% to $3.7 billion. The company said fragrance was a key driver, with organic sales in the category up 20%; results varied across its other businesses.
Estée Lauder Companies raised its fiscal 2027 organic sales growth outlook after first-quarter net sales rose 7% to $3.7 billion, with the company attributing much of the momentum to fragrance. Its revised forecast is 4%–5.5% organic sales growth, up from a prior range of 3%–5%.
The company reported that organic fragrance sales grew 20% in the quarter. Le Labo and Kilian Paris each posted double-digit sales growth, according to Estée Lauder. The company linked Kilian Paris’s performance in part to The Cocktails collection, which launched in August. President and CEO Stéphane de La Faverie said Estée Lauder’s fragrance retail sales in Western Europe outpaced the wider industry by four times; this comparison was his characterization during a November 2 results webcast.
Other categories delivered more mixed results. Skin-care organic sales rose 4% to $1.651 billion, supported by La Mer and The Ordinary, the company said. Make-up grew 1%, marking its second consecutive quarter of organic sales growth, with double-digit growth at MAC Cosmetics and Tom Ford. Estée Lauder’s namesake brand declined, which the company attributed to lower face-category sales and the timing of fiscal 2027 product launches, partly offset by its next-generation Double Wear foundation.
Hair-care sales were flat: growth at The Ordinary was offset by a decline at Aveda. Estée Lauder also said US MAC sales on TikTok Shop had doubled since the brand launched there, but the source does not give the period covered or a sales baseline for that comparison. The company framed the results as evidence that its “Beauty Reimagined” turnaround strategy is gaining traction.
Fragrance Lifts the Sales Forecast
The higher forecast signals that Estée Lauder expects recent sales momentum to continue through fiscal 2027, after a quarter in which performance differed sharply by category and brand. Fragrance was the standout growth engine, while gains in skin care and make-up were more modest and hair care was unchanged.
For investors, retailers and beauty-industry watchers, the update offers a measure of progress in the company’s effort to restore growth and improve margins. The revised range is a company forecast, not a guarantee of results. Its reliance on a fast-growing prestige fragrance business also makes the durability and breadth of demand relevant to the outlook.
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Turnaround Strategy and Brand Mix
Estée Lauder owns brands including MAC Cosmetics, Jo Malone London, Clinique and Tom Ford Beauty. Under de La Faverie, the company has pursued “Beauty Reimagined,” a strategy it describes as a plan to restore sales growth and improve profit margins by changing how it operates in a competitive market. De La Faverie said the strategy’s effects were becoming more evident across the business.
The company also plans to adapt approaches used by brands it says are gaining at the entry end of prestige beauty. De La Faverie cited The Ordinary’s and MAC’s progress in volume and value, and said Estée Lauder wants to apply elements of that playbook to brands including Bobbi Brown, Clinique and Estée Lauder. The source provides no detailed timetable or financial targets for that effort.
“We feel very good about the long-term opportunities in fragrances.”
— Stéphane de La Faverie, Estée Lauder Companies president and CEO, speaking on the November 2 results webcast
Forecast Risks and Missing Details
The source does not provide the full earnings release, an explanation of the assumptions behind the revised forecast, or a detailed breakdown of sales by region and channel. It is also unclear how much of the fragrance growth came from pricing, volume, launches or other factors. The reported four-times comparison with Western Europe’s wider industry and the doubling of MAC sales on TikTok Shop lack comparison windows and baseline figures in the source.
The forecast remains forward-looking: the reported quarter does not establish whether growth will persist across the year. The company’s margin performance and the financial contribution of its turnaround initiatives are not quantified in the supplied material.
How the Revised Outlook Holds
Investors and industry observers will look to subsequent quarterly results for evidence on whether fragrance growth continues and whether the gains spread to other categories. Further disclosures would clarify the assumptions behind the 4%–5.5% full-year forecast, including the expected contributions from brands, regions and channels. The company has also said it intends to extend its entry-prestige approach across more of its portfolio; the source does not give dates or measurable milestones for that work.
Key Questions
What changed in Estée Lauder’s fiscal 2027 outlook?
The company raised its forecast for organic sales growth to 4%–5.5%, from its previous range of 3%–5%.
How did Estée Lauder perform in the first quarter?
Net sales increased 7% to $3.7 billion. The source says organic fragrance sales rose 20%; it does not provide a full breakdown of total sales growth by category.
Which category contributed most to the reported momentum?
Fragrance was identified as a key driver, with double-digit growth at Le Labo and Kilian Paris. The source does not state how much fragrance contributed to total company sales growth.
Did all Estée Lauder categories grow?
No. Skin care rose 4% and make-up rose 1%, while hair-care sales were flat. The namesake Estée Lauder brand declined, according to the company.
What remains unknown about the new forecast?
The source does not detail the forecast’s assumptions, its expected margin effects, or the contribution expected from individual regions and brands. Future quarterly results will show whether the growth continues.
Source: cosmeticsbusiness.com
