The Estée Lauder Companies recorded 5% growth in net sales for fiscal 2026, to $15 billion, according to Glossy.
According to Cosmetics Business, gross profit rose 7% to $11.3 billion, compared with $10.5 billion a year earlier. The outlet also notes that the group benefited from a favourable $38 million effect on cost of sales in the fourth quarter of fiscal 2026, linked to tariff refunds, partially offset by a gross impact of $102 million over the year linked to tariff increases. This context follows a US Supreme Court ruling that President Donald Trump had improperly used the IEEPA to impose these tariffs, which led several companies to sue the US administration to recover the sums paid.
Fragrance leads, hair lags behind
The fragrance category remains the group's most dynamic, with net sales growth of 10% in fiscal 2026, driven by Tom Ford, Le Labo and Kilian Paris. Skincare, the group's leading category, grew by 5%, while makeup rose 2%. The hair category declined 1% over the year.
Cosmetics Business provides further detail on these same trends: skincare reportedly grew 4%, driven by La Mer, The Ordinary and Estée Lauder; makeup reportedly remained broadly stable, supported by the MAC Cosmetics launch at Sephora and by Tom Ford, offsetting declines at Bobbi Brown and Too Faced, the latter hurt by a sluggish retail market and an unfavourable comparison with higher shipments the previous year. The outlet also mentions a double-digit acceleration in retail sales in South Korea in the fourth quarter, driven by makeup and skincare.
Targeted acquisitions and digital distribution
On the investment front, the group took a minority stake in the Mexican niche fragrance brand Xinú in November 2025, then in the luxury skincare brand 111Skin in April. In March, it announced the full acquisition of the Indian brand Forest Essentials, following an initial minority investment made in 2008. Merger discussions with the Spanish group Puig, mentioned earlier in the year, ended in May.
« Notre priorité a été et restera de faire croître notre cœur de métier. Nous continuerons de poursuivre des accords minoritaires et des rachats de marques uniques qui renforcent notre portefeuille et peuvent bénéficier de notre capacité à créer de l'échelle et à générer un retour sur investissement attractif », said Stéphane de La Faverie, the group's president and chief executive officer.
According to Cosmetics Business, the group also expanded its presence on Amazon to 13 brands in 11 markets, and on TikTok Shop to 12 brands in nine markets.
Targets for fiscal 2027
« Je suis extrêmement fier de notre équipe pour avoir livré des résultats de l'exercice 2026 supérieurs aux attentes que nous avions en début d'année », said de La Faverie, quoted by Cosmetics Business. He added that the group « délivre sur tous les aspects de "Beauty Reimagined" » and that its « One ELC » operating model allows the entire organisation to move with speed and discipline.
For fiscal 2027, Estée Lauder Companies is targeting organic net sales growth of between 3 and 5%. « Nous affirmons notre confiance dans l'accélération de la croissance organique des ventes. Nous relevons également nos perspectives pour une marge opérationnelle ajustée encore plus forte, en misant sur nos points forts pour diversifier davantage la croissance entre catégories de produits et zones géographiques, y compris en accélérant la croissance en Amérique du Nord », the executive said.
