The Estée Lauder Companies (ELC) has increased its full-year outlook for 2027 after net sales rose 7% to US$3.7bn in fiscal Q1 2027.
The US beauty company, which owns MAC Cosmetics, Jo Malone London, Clinique and Tom Ford Beauty, said its results were particularly bolstered by strong sales within its fragrance portfolio.
As a result, ELC has increased its 2027 full-year estimates from 3% to 5% organic sales growth to 4% to 5.5%.
ELC has strengthened its position as a luxury perfume player by boosting its presence in the prestige tier, with organic sales across fragrance growing 20% during the quarter.
Le Labo and Kilian Paris both reported double-digit sales growth, bolstered by the latter's The Cocktails fragrance collection which launched in August.
ELC’s fragrance retail sales also outpaced the wider industry in Western Europe by four times, said ELC president and CEO, Stéphane de La Faverie, during a financial results webcast held on 2 November.
He commented that the company feels “very good about the long-term opportunities in fragrances”.
He added that the business has also “moved beyond restoring growth”, and he is “very confident that the beauty category is remaining a very strong category in consumer goods in general”.
Elsewhere in ELC’s beauty portfolio, skin care reported a 4% increase in organic growth to $1,651m.
This was driven by luxury player La Mer’s innovation, including new launch The Concentrate Serum, and Deciem’s The Ordinary, especially the success of Glycolic Acid 7% Exfoliating Toner and the launch of Lacto‑PDRN 4% + B9 Eye Cream.
Meanwhile, the make-up category was up 1% during fiscal Q1 2027 as it entered its second consecutive quarter of organic sales growth.
ELC highlighted that both MAC Cosmetics and Tom Ford were up double-digits during this period, while namesake brand Estée Lauder declined.
A company statement read: "Estée Lauder net sales declined, reflecting lower net sales in the face subcategory, including the timing of fiscal 2027 new product launches, partially offset by incremental sales from the next-generation of Double Wear Stay-in-Place Longwear Matte Foundation that launched in the second half of fiscal 2026."
MAC Cosmetics reported a particularly strong performance through TikTok Shop, with US sales on the social media platform doubling since its launch.
ELC’s hair care category, however, saw sales fall flat, with The Ordinary’s strong growth within the category offset by a decline from salon-first brand Aveda.
At the centre of the company’s strategic turnaround, which it said has led to this growth, is ‘Beauty Reimagined’ – a strategy launched under de La Faverie to restore sales growth and improve profit margins, reimagining the way the beauty leader operates in a competitive and fast-moving market.
De la Faverie said the impact of this turnaround strategy is “becoming increasingly evident across our business”.
Looking ahead, ELC aims to take inspiration from the stronger performing brands sitting at the entry of the prestige market to apply to its other arms.
“On a brand like The Ordinary, we are gaining in skin care, in volume and in value,” said de la Faverie.
“In the case of MAC Cosmetics, we are also gaining in volume and in value for the first time in a long time.
“But we want to use the playbook that we have with MAC Cosmetics and The Ordinary that also are the entry of prestige.
“There is a lot of demand, a lot of growth at the entry of prestige, using this playbook to apply it to every single [one] of our other brands, [whether] it is on Bobbi Brown [Cosmetics] or on Clinique, on Estée Lauder, to really make sure that we are bringing the entire portfolio from volume to volume plus value going forward.”
ELC recently named Rachele Testa Schaefers as Executive Director, Global Communications, Make-up Brands to “create moments that drive conversation” and “relevance”.
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