Estée Lauder Companies Sees Strong Finish to 2026 Financial Year

Estée Lauder Companies has reported a strong finish to its 2026 financial year, with net sales rising 5% to reach $15 billion. The company's gross profit also increased 7% to $11.3 billion, driven by growth in fragrance and skin care, as well as benefits from US tariff refunds.

## Financial Performance The company's financial performance was boosted by a $38 million benefit in cost of sales from refunds received during the fiscal 2026 fourth quarter, which partially offset the full-year gross impact of incremental tariffs of $102 million. According to Stéphane de La Faverie, President and CEO, the company is delivering on all aspects of its 'Beauty Reimagined' strategy, with its One ELC operating model enabling the organization to move at speed and with discipline.

## Category Performance The company's core categories performed well in 2026, with skin care net sales increasing 4%, primarily driven by growth from La Mer, The Ordinary, and Estée Lauder. Fragrance saw a 10% sales rise due to double-digit growth from the company's Luxury Brands, led by Le Labo, Tom Ford, and Kilian Paris. The company's make-up category saw net sales come in largely flat, bolstered by growth from MAC Cosmetics and Tom Ford, which offset declines from Bobbi Brown and Too Faced.

## Geographic Performance The company also saw a boom in prestige demand in South Korea, with Q4 retail sales growth accelerating to double-digits and driven by make-up and skin care. In Mainland China, the company saw value share gains in the fiscal 2026 fourth quarter and full year, driven by fragrance, skin care, and make-up. The company has also expanded its consumer coverage on Amazon and TikTok Shop, reaching 13 brands across 11 markets and 12 brands across nine markets, respectively.

## Outlook Looking ahead to fiscal 2027, the company is affirming its confidence to accelerate organic sales growth, with La Faverie stating that the company will double down on its strengths to further diversify growth across product categories and geographies. The company is also raising its outlook for an even stronger adjusted operating margin, driven by its continued success in key markets and categories. The following table summarizes the company's category performance in 2026: | Category | Net Sales Growth | | --- | --- | | Skin Care | 4% | | Fragrance | 10% | | Make-up | 0% | | Hair Care | -1% |