US beauty products powerhouse The Estée Lauder Companies today (2 November) delivered strong first-quarter results with sales, margins and earnings per share (EPS) all in encouraging territory.
The group posted revenue growth across almost all product categories and geographic regions (see table below).
As a result, ELC raised its fiscal 2027 full-year outlook on sales, margin and EPS.
Strong +73% revenue growth in Asia Pacific was driven primarily by ELC’s Asia travel retail business.
The channel saw sales growth from the Beijing and Shanghai airports, reflecting an increase in replenishment orders amid continued stabilisation following changes in duty-free retailers, including the related [formerly Sunrise Duty Free] online businesses that began in ELC’s fiscal 2026 second quarter.
This saw Avolta take over Sunrise Duty Free’s business at Shanghai Pudong Airport Terminal 1 and Satellite Hall 1; Wangfujing Duty Free snare the Beijing Capital International Airport T2 concession; and China Duty Free Group (CDFG) take over the remaining businesses across all three locations from its subsidiary Sunrise Duty Free.
ELC also posted an increase in net sales in the critical Hainan offshore duty-free channel, primarily driven by an improvement in online retail purchasing (we will bring you more on the company’s travel retail performance after today’s earnings call).
Within its fiscal 2027 full-year outlook, ELC is now assuming organic net sales growth of +4.0% to +5.5% with a greater increase in the first half compared to the second due to (i) more new product launches earlier in fiscal 2027, (ii) an increase in travel retail shipments reflecting retail trend improvements entering fiscal 2027, and (iii) a lower base of travel retail shipments in the first half of fiscal 2026 relative to the second half.
“Our first quarter of fiscal 2027 marks another powerful step forward for The Estée Lauder Companies,” said President and CEO Stéphane de La Faverie.
“Growth is accelerating, profitability is strengthening significantly, and the impact of Beauty Reimagined (the company’s revival programme launched in February 2025) becoming increasingly evident across our business.
“We are bringing more breakthrough innovation to consumers, amplifying the desirability of our brands with bold, high-impact campaigns, and building a faster, more agile organisation that is converting momentum into stronger financial performance.
“We have moved beyond restoring growth. We are building diverse drivers for sustained profitable growth.
“The energy and determination of our teams, combined with the strength of our brands and the progress of our transformation, give me greater confidence than ever in the opportunities that lie ahead. We are raising our fiscal 2027 outlook, reflecting both our strong start and our conviction in the future we are creating.”
Q1 highlights included:
Prestige beauty share gains in some key markets. These included:
- Mainland China: Value share gains driven by makeup, skincare and fragrance, led by Tom Ford, The Ordinary, Le Labo and La Mer
- Japan: Value share gains led by makeup and fragrance, driven by double-digit retail sales growth from Le Labo, M·A·C and Tom Ford
- South Korea: Double-digit retail sales growth, with share gains in makeup led by M·A·C and Tom Ford
- The USA: Volume share gains driven by The Ordinary and M·A·C and value share gains in fragrance and haircare
- Western Europe: Value share gains in skincare and fragrance ✈
