The Estée Lauder Companies Inc. released its financial results for the second quarter of fiscal 2026, which ended December 31, 2025. Reported net sales increased 6% to $4.2 billion, and organic net sales increased 4%.

Stéphane de La Faverie, President and CEO, said, 

“We delivered excellent second quarter results to solidify a strong first half of fiscal 2026. In this pivotal year, Beauty Reimagined has invigorated our business as we execute the biggest operational, leadership, and cultural transformation in our history. On its one-year anniversary, we raise our fiscal 2026 outlook confident in the strength of our turnaround, even as our second half reflects previously-expected headwinds and now-greater consumer-facing investments, as we expect to restore organic sales growth and expand our operating margin for the first time in four years.”

Skincare

Net sales increased 6%, mostly driven by growth from La Mer, Estée Lauder, and The Ordinary. Skincare’s operating income increased, driven by net sales and net benefits from the PRGP, which helped reduce non-consumer-facing expenses. This was partially offset by increased consumer-facing investments to support key activations and new product launches.

Makeup

Makeup net sales decreased 1%, driven by Estée Lauder and offset by M·A·C. Makeup operating results improved from a loss in the prior-year period, which included $258 million of goodwill and other intangible asset impairments relating to Tom Ford and Too Faced.

Fragrance

Fragrance net sales increased 6%, driven by high-single-digit growth from the company’s Luxury Brands—which grew across all geographic regions—led by Tom Ford, Le Labo, and Kilian Paris.

Fragrance operating results improved to income from the prior-year period, which included a $549 million other intangible asset impairment charge relating to Tom Ford. These results also reflect the increase in net sales, partially offset by increased consumer-facing investments to support key activations, distribution expansion, and new product launches.

Hair Care

Hair Care net sales returned to growth, increasing 5%, primarily driven by distribution expansion and the success of Multi-Peptide Serum for Hair Density from The Ordinary, as well as initial shipments for Bumble and bumble’s SalonCentric launch in February 2026.

Market Results

Mainland China: Second consecutive quarter of double-digit retail sales growth and continued share gains, driven by every category, led by La Mer, Tom Ford, and Le Labo. For calendar year 2025, the company gained share in every category and across brick-and-mortar and online.

Japan: Share gains overall driven by Makeup, led by M·A·C and Bobbi Brown Cosmetics, and Fragrance, led by Le Labo, Kilian Paris, and Editions de Parfums Frédéric Malle. For calendar year 2025, the company gained share in Fragrance.

U.S.: Volume share gains in total prestige beauty, as the company also gained value share in Skin Care and Hair Care. 

For calendar year 2025, the company gained volume share in total prestige beauty, while Clinique and The Ordinary drove the Company’s value share gains in Skin Care, and Estée Lauder and Le Labo gained value share in Makeup and Fragrance, respectively. In direct-to-consumer, Fragrance rose mid-single-digits.

Western Europe: Share gains in Fragrance in each of France, Spain, and the U.K.

Estee Lauder Companies entered into a strategic agreement for EBS in connection with the transformation of its global operating model through the (i) consolidation of certain service providers, (ii) expansion of outsourced services, and (iii) redesign and standardization of the related end-to-end business processes, leveraging advanced technology to improve productivity. ELC remains on track to achieve the overall PRGP savings.

Estee Lauder Companies is raising its fiscal 2026 full-year outlook, reflecting solid performance in the fiscal 2026 first half while remaining cautious amid ongoing macroeconomic uncertainty and continued headwinds in key areas of its business. 

Accordingly, the company is tightening the range on net sales and raising its outlook for adjusted diluted net earnings per common share and adjusted operating margin.