Following a period of diminished dynamism, The Estée Lauder Companies announced better-than-anticipated revenues for the initial quarter of its financial year.
Turnover for the July to September 2025 timeframe achieved USD3.48 billion, demonstrating a 4% increment compared to the previous year, as per the corporation’s declaration on Thursday, October 30. This number exceeded analysts’ projections of USD3.38 billion.
Scents Power Advancement
Scent product net revenues climbed 14% year over year, spurred by Tom Ford innovations — notably the debuts of Voyager Oud and Black Orchid Reserve, with Tilda Swinton as the face — alongside robust output from Jo Malone London’s colognes.
Skincare product net revenues grew 3%, while makeup revenues decreased by 1%, and haircare revenues experienced a 7% decline.
Rebound in China?
The enterprise, which encompasses Clinique, The Ordinary, Kilian Paris, and M·A·C, had encountered difficulties in recent periods owing to sluggish consumer spending, predominantly in China. Concerning this latter aspect, the group is observing enhancement.
During the first quarter of its financial year, The Estée Lauder Companies disclosed a 9% surge in revenues within China in contrast to the equivalent duration last year, fueled partly by notable performances from La Mer, Le Labo, and Tom Ford.
“Expansion in Mainland China, primarily propelled by groundbreaking items and current offerings,” along with “focused amplified consumer engagement” the firm asserted.
The entity had also publicized a restructuring strategy in February, the concluding expense of which is anticipated to fall between USD1.2 and USD1.6 billion before taxes. It further intended to remove 5,800 to 7,000 roles by the close of 2026.
“We experienced a powerful commencement to fiscal 2026 (…), acquiring prestige beauty market share in certain pivotal strategic domains of focus, and elevating profitability,” stated Stéphane de La Faverie, President and CEO. “These outcomes fortify the assurance we possess in our fiscal 2026 perspective—a crucial year—as we reinstate organic revenue progression and broaden our operating margin for the initial occasion in four years,” he appended.
Concerning fiscal 2026, Estée Lauder persists in forecasting a 2% to 5% rise in net profit per share. The business also cautioned that fresh trade duties could diminish prospective earnings by approximately USD100 million, yet conveyed that it is keenly surveying trade policy modifications and enacting procedures to mitigate possible effects.
“The Company has put into effect an array of measures,” including “further optimizing its regional manufacturing presence to situate production nearer to the consumer,” the collective added.
