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Estée Lauder Companies raised its fiscal 2027 organic sales growth outlook to 4%–5.5% after first-quarter net sales increased 7% to $3.7 billion. Fragrance led the growth, while results across skin care, makeup and hair care were mixed.
Estée Lauder Companies raised its fiscal 2027 outlook for organic sales growth after reporting that first-quarter net sales rose 7% to US$3.7 billion, with the company citing strong fragrance sales as a key driver. The company now expects organic sales growth of 4%–5.5%, up from its previous range of 3%–5%.
Fragrance was the strongest growth area in the quarter. ELC said organic fragrance sales increased 20%, with luxury labels Le Labo and Kilian Paris each recording double-digit sales growth. Kilian’s performance was supported in part by The Cocktails collection, launched in August. Chief Executive Stéphane de La Faverie said during the November 2 results webcast that ELC’s fragrance retail sales in Western Europe outpaced the wider industry by four times.
Other categories reported more varied results. Skin care organic sales rose 4% to $1.651 billion, with ELC pointing to product innovation at La Mer and sales of The Ordinary products including Glycolic Acid 7% Exfoliating Toner. Makeup grew 1%, its second consecutive quarter of organic growth; MAC Cosmetics and Tom Ford posted double-digit growth, while the Estée Lauder brand declined. Hair care sales were flat, as growth at The Ordinary was offset by a decline at Aveda.
ELC attributed the performance to its Beauty Reimagined strategy, which it launched to restore sales growth and improve margins by changing how the company operates. De La Faverie said the strategy’s impact was becoming more evident across the business. The company also plans to apply practices it says are working at entry-level prestige brands such as MAC and The Ordinary to other labels, including Bobbi Brown, Clinique and Estée Lauder.
Fragrance Lifts the FY27 Forecast
The raised forecast signals improved expectations for ELC’s sales growth, but the updated range remains a projection rather than a guarantee. The quarterly results also show why fragrance matters to the company’s near-term performance: its 20% organic growth stood out against slower or uneven growth in other categories.
For investors, suppliers and beauty retailers, the results offer an indication of where demand is currently strongest within ELC’s portfolio. They also provide an early measure of whether the company’s turnaround can extend beyond a small number of brands. Makeup’s second consecutive quarter of growth is a positive data point, while the decline at the Estée Lauder brand and flat hair-care sales show that performance is not uniform.
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Turnaround Focuses on Prestige Brands
ELC owns a broad portfolio of beauty brands, including MAC Cosmetics, Jo Malone London, Clinique and Tom Ford Beauty. Its stated Beauty Reimagined plan aims to return the business to growth while improving profit margins. The company says it wants to use lessons from brands gaining both volume and value, particularly The Ordinary and MAC, across its wider portfolio.
In the webcast, De La Faverie described fragrance as a long-term opportunity and said the company had “moved beyond restoring growth.” These are management’s assessments of the business and category, not independent findings. The sales figures and revised guidance provide the reported results against which the company’s strategy can be followed.
““We feel very good about the long-term opportunities in fragrances.””
— Stéphane de La Faverie, Estée Lauder Companies president and CEO
Risks Behind the Updated Range
The available results do not break down the specific contribution of each brand or product to the overall 7% net-sales increase, and the reported material does not provide a full reconciliation of net sales with organic sales growth. It also does not establish how much of fragrance’s performance will persist in later quarters.
ELC has not, in the cited report, detailed the assumptions behind its new full-year range or quantified how much the Beauty Reimagined strategy contributed to the quarter. The forecast could be affected by changes in consumer demand, product-launch timing and performance across brands. The company’s statements about category demand and strategy should be understood as management’s views.
Upcoming Results Will Test Momentum
Investors will look to ELC’s next quarterly results for evidence that fragrance growth is continuing and that progress is spreading across its broader portfolio. They will also be able to compare reported sales with the revised 4%–5.5% organic growth outlook as the fiscal year advances.
Further updates may clarify how the company plans to extend the MAC and The Ordinary playbook to other brands, and whether that approach supports both sales volume and value. The source report does not specify a date for the next results release or provide additional milestones for the strategy.
Key Questions
Why did Estée Lauder raise its FY27 outlook?
The company said it raised its forecast after first-quarter net sales increased 7% to $3.7 billion, with strong fragrance sales supporting the results.What is ELC’s new organic sales growth forecast?
ELC raised its fiscal 2027 organic sales growth range from 3%–5% to 4%–5.5%.How did fragrance perform in the quarter?
ELC reported 20% growth in organic fragrance sales. Le Labo and Kilian Paris each recorded double-digit sales growth, according to the company.Did all of ELC’s business categories grow?
No. Skin care organic sales rose 4% and makeup grew 1%, while hair-care sales were flat. The Estée Lauder brand declined, even as MAC Cosmetics and Tom Ford reported double-digit growth.What is the Beauty Reimagined strategy?
ELC describes Beauty Reimagined as a plan to restore sales growth and improve profit margins by changing how it operates. The company says it intends to apply lessons from brands such as MAC and The Ordinary across its portfolio.Source: cosmeticsbusiness.com
