Estée Lauder Raises Its Year: Fragrance Jumps 19% in a Big Beat

Estée Lauder raised its full-year sales and profit forecasts on Monday, November 2, 2026, after fiscal first-quarter earnings beat expectations by a wide margin — adjusted profit of 72 cents a share against 51 cents expected, on sales up 7% to $3.72 billion. Luxury fragrance was the engine, with sales jumping 19%, and the beauty giant said it will cut promotions and spend more on building desire for its brands ahead of the holiday season.

What happened

Estée Lauder reported net sales of $3.72 billion for the quarter ended September 30, up 7% from a year earlier and above the $3.65 billion analysts expected, according to Reuters, citing LSEG data. Adjusted earnings of 72 cents a share also beat the 51-cent estimate, and Zacks noted that adjusted earnings per share jumped 125% from 32 cents in the year-ago quarter, while quarterly net sales of $3,715 million beat its $3,647 million consensus mark.

The company then raised its fiscal 2027 outlook. It now expects adjusted earnings of $3.20 to $3.45 a share, up from $3.10 to $3.35 before, and organic net sales growth of 4% to 5.5%, up from 3% to 5%. Zacks added that adjusted operating margin guidance also rose, to 12.9% to 13.7% from 12.7% to 13.5%.

Fragrance did the heavy lifting

Fragrance sales surged 19% to $861 million, with double-digit growth across luxury brands including Le Labo, Tom Ford, Jo Malone London and Kilian Paris, according to Zacks. Sharecast reported that fragrance earnings nearly doubled to $166 million, and that skin care — the biggest division, helped by La Mer and The Ordinary — also performed strongly. Adjusted gross margin expanded 240 basis points to 75.7%, Zacks reported, showing that profit grew much faster than sales.

Geography helped too. Reuters reported organic sales in mainland China rose 9%, matching the growth rate a year earlier, while organic sales in the Americas rose 4%, compared with a 2% decline a year ago. Demand from affluent consumers and younger shoppers stayed resilient despite broader economic uncertainty.

Why it is blowing up

The story is a turnaround gaining proof. Chief Executive Stéphane de La Faverie launched the Beauty Reimagined strategy a year ago to revive growth through faster innovation, new channels, cost discipline and more consumer-facing investment. On Monday he said growth is accelerating and profitability is strengthening significantly, and that the company will accelerate top-of-the-funnel investment to build brand desirability while becoming less reliant on discounts and promotions worldwide, according to Reuters.

Investors reacted early. Shares rose nearly 3% in premarket trading, Reuters reported, and Mondeum, citing Dow Jones Market Data, said the shares rose 3.5% to $113 before the open and were set for their highest close since February 24 — after October was already the stock's best month since August, with an 18% gain. The stock was up about 4% for the year as of Friday's close, so Monday's beat matters because it suggests the recovery is broadening, not just bouncing.

What is next

The test now is the holiday quarter. Management itself expects growth to be front-loaded, helped by product launches, travel-retail restocking and easier comparisons in the first half. Estée Lauder hopes its makeup category returns to growth next quarter as brands including MAC and Tom Ford makeup gain share in mainland China, Reuters reported. If fragrance keeps growing at close to this pace while promotions fall, the raised profit range will look more durable; if holiday demand softens, the same raised bar will be harder to clear. This report describes what happened and why markets reacted — it is not a recommendation to buy, sell or hold any security.

FAQ

How much did Estée Lauder earn in the quarter?

Adjusted earnings were 72 cents a share, beating the 51 cents analysts expected, on net sales up 7% to $3.72 billion.

Why did Estée Lauder raise its guidance?

Stronger-than-expected first-quarter sales and profit — led by a 19% jump in fragrance — led it to lift fiscal 2027 adjusted earnings guidance to $3.20-$3.45 a share and organic sales growth to 4%-5.5%.

Which brands drove the growth?

Luxury fragrance brands Le Labo, Tom Ford and Jo Malone London led, while skin care brands La Mer and The Ordinary also performed strongly.

How did the stock react?

Shares rose nearly 3% in premarket trading on Monday, with one report putting the premarket gain at 3.5% to $113, set for the highest close since February 24.