Estée Lauder Sales Rise 6%

The Estée Lauder Cos. reported a 6% increase in sales to $3.6 billion in the fourth quarter, with growth across all product categories except hair care. The company's luxury fragrance brands, including Le Labo and Tom Ford, drove 10% growth in net sales during the quarter.

The company's net loss was $116 million, with a diluted net loss per common share of 32 cents, compared to a net loss of $546 million and a diluted net loss per common share of $1.51 in the prior-year period. However, adjusted diluted net earnings per common share were 39 cents, an increase from 9 cents in the prior-year period.

The Estée Lauder Cos. forecasts net sales growth of between 3% and 5% for 2027, with a greater increase expected in the first half of the year due to new product launches and an increase in travel retail shipments. The company expects continued growth in fragrance and skin care, as well as a return to growth in makeup for the full year.

Hair care net sales declined 1% in the fourth quarter, primarily due to lower Aveda sales. However, the company's skincare brand, The Ordinary, offset the drop. The Estée Lauder Cos. received a $38 million benefit in the cost of sales from tariff refunds in the fourth quarter of fiscal 2026.

## Why it matters The Estée Lauder Cos.' sales growth is significant, as it reflects the company's ability to drive growth across its product categories, despite challenges in the hair care segment. The company's focus on luxury fragrance and skin care has paid off, with Le Labo and Tom Ford driving 10% growth in net sales. The company's forecast for 2027 suggests that it is confident in its ability to continue growing, driven by new product launches and an increase in travel retail shipments.

The Estée Lauder Cos.' performance is also a reflection of the resilience of affluent and younger customers, who have continued to drive demand for luxury fragrances and skincare products. The company's strategy to accelerate premium product launches and increase investments in innovation and marketing is expected to sustain its gains and drive growth in the makeup and hair care categories.

## What happens next The Estée Lauder Cos. will continue to monitor the situation in the Middle East, which is not expected to have a material impact on its fiscal 2027 results. The company will also focus on expanding its brands across distribution channels and into more markets, and increasing consumer-facing investment. With its strong performance in the fourth quarter and its forecast for 2027, The Estée Lauder Cos. is well-positioned for continued growth and success.