The Estée Lauder Companies reported its financial results for the first quarter ended September 30, 2025.

Reported net sales increased 4% to $3.5 billion, and organic net sales increased by 3%.

Stéphane de La Faverie, President and CEO, said, 

“We had a strong start to fiscal 2026 as we execute on our Beauty Reimagined strategy—returning to organic sales growth, gaining prestige beauty share in a few key strategic areas of focus, and improving profitability. Encouragingly, we are building momentum across the organization from the significant operational changes we have executed to-date to be faster and more agile. These results reinforce the confidence we have in our fiscal 2026 outlook—a pivotal year—as we restore organic sales growth and expand our operating margin for the first time in four years.”

Beauty Gains

In Mainland China, shares continued to grow, driven by every category, led by La Mer, Le Labo, and Tom Ford. In the region, brick-and-mortar and online sales outperformed.

In the U.S., skincare saw the most growth, led by The Ordinary and Estée Lauder, as well as haircare. The Estée Lauder brand gained share in each of Skincare, Makeup, and Fragrance, for the brand’s third consecutive quarter of overall share gains.

Fragrance in France and Spain saw the most growth in the Western Europe region. 

Multiple product launches occurred this quarter, notable ones include: 

• La Mer unveiled a new platform, “La Mer Gives Skin Life”
• The Ordinary debuted its fast-acting, targeted acne spot treatment, Sulfur 10% Powder-to-Cream Concentrate
• New MAC products: Lipglazer Glossy Liner, Liquid Highlighter, and “I Only Wear MAC” campaign
• Tom Ford’s new Architecture Radiance Hydrating Foundation and Oud Voyager
• Jo Malone’s new Raspberry Ripple and “Uniquely You” campaign

Q1 Results by Category

Skincare net sales increased by 3%, mostly driven by La Mer and Estée Lauder.

Makeup net sales decreased 2%, primarily driven by Bobbi Brown. This reflects the unfavorable comparison of higher new product launch shipments in the prior year, as well as a decrease in the eye subcategory.

Net sales in the Fragrance category increased 13%, driven by double-digit growth from the company’s Luxury Brands, which grew high-single to strong double digits across all geographic regions. 

Haircare net sales decreased 7%, primarily driven by Aveda, reflecting the brand’s strategies to improve long-term performance. 

The decrease also reflects Aveda’s continued softness in the salon channel. Collectively, these declines more than offset the benefits from the brand’s fiscal 2025 fourth-quarter launch in Amazon’s U.S. Premium Beauty store, as well as innovation such as Miraculous Oil.

Read Next

Estée Lauder Companies Partners with Shopify

ELC Opens Global Fragrance Atelier in Paris