The Estée Lauder Companies reported a 7% increase in net sales in the first quarter of fiscal 2027, ended September 30, 2026, exceeding analysts’ expectations of around 5% growth. Building on this momentum, the US cosmetics group is raising its full-year guidance and setting new growth and operating margin targets for 2030 as it continues its turnaround.

Organic sales grew by 6% during the quarter, led by fragrances, which posted a 20% increase, driven in particular by Le Labo, Tom Ford, Jo Malone London, and Kilian Paris. Skincare sales rose by 4%, supported by La Mer and The Ordinary, while makeup sales edged up 1%. Haircare sales remained stable.

Profitability also improved significantly. The adjusted operating margin rose to 12.1%, up from 7.3% a year earlier. Adjusted diluted earnings per share reached US$0.72, compared with US$0.32 in the first quarter of fiscal 2026.

Raising its ambitions for 2030

During an investor presentation in Shanghai, The Estée Lauder Companies outlined its long-term growth and profitability targets. By fiscal 2030, the group aims to achieve mid-single-digit annual organic sales growth and double-digit growth in adjusted earnings per share. It is also targeting an adjusted operating margin of 16.5% to 18.5%, compared with a projected range of 12.9% to 13.8% for fiscal 2027.

For the current fiscal year, the group has raised its guidance for organic sales growth, operating margin and earnings per share. The Estée Lauder Companies’ outlook is supported in particular by strong demand for prestige fragrances and skincare.

China remains a key market in the group’s strategy, with Estée Lauder anticipating strong organic sales growth in the country.

“We are now entering a new chapter, moving beyond restoring growth to accelerating sustainable, profitable growth and creating long-term value. Our fiscal 2027 outlook reflects this momentum, with accelerating organic sales growth and another year of significant profitability improvement,” said Stéphane de La Faverie, President and CEO of The Estée Lauder Companies.