Net Sales Grow 6% for Estée Lauder Companies in Q4 2026

The Estée Lauder Companies Inc.’s Beauty Reimagined strategy is paying off.

The Happi Top 50 Company reported net sales grew 6% in Q4 2026.

“I am incredibly proud of our team for delivering fiscal 2026 results ahead of the expectations we had to start the year. We reignited growth with organic sales rising 3%, driven by the breadth of growth across brands, and achieved significant operating margin expansion,” said Stéphane de La Faverie, president and CEO. “We ended the year on a high note, as organic sales growth accelerated to 5% for our fourth consecutive quarter of growth and stronger profitability. We are delivering on all aspects of Beauty Reimagined. Our One ELC operating model is increasingly enabling the entire organization to move at speed and with discipline.”

Skin Care

Skin Care net sales increased 4%, primarily driven by growth from La Mer, The Ordinary and Estée Lauder. Net sales growth from La Mer benefited from innovation, including The new Rejuvenating Eye Cream, and existing product franchises, such as The Treatment Lotion and The Moisturizing Soft Cream, driving strong performance during key shopping moments and holiday, officials said.
The increase in net sales from The Ordinary benefited from targeted expanded consumer reach, key campaigns—including DECIEM’s Abnormal Birthday Party in April 2026—as well as the timing of shipments for key shopping moments

Net sales from Estée Lauder increased, primarily due to innovation and existing products across the Advanced Night Repair and Revitalizing Supreme+ product franchises—which helped to drive strong performance during key shopping moments and holiday.

Makeup

Makeup net sales growth improved over 500 basis points compared to prior year, though net sales were virtually flat, primarily driven by growth from MAC and Tom Ford, offset by declines from Bobbi Brown and Too Faced.

MAC net sales increased, primarily due to shipments for the March 2026 launch in select US. Sephora locations as well as online and in Sephora at Kohl’s. The growth also reflects continued success from the lip subcategory, fueled by its hero products, including the Powder Kiss Lipstick product franchise and Lip Pencil.

Net sales increased from Tom Ford, with Eye Color Quad innovation driving growth in the eye subcategory and Architecture Soft Matte Blurring Foundation and the new Architecture Radiance Hydrating Foundation fueling growth in the face subcategory. Bobbi Brown net sales decreased, primarily reflecting continued declines in the lip and eye sub-categories from both retail softness and the Company’s strategic focus on stronger-performing products within the face subcategory.

Net sales declined from Too Faced, primarily due to continued retail softness for the brand, the unfavorable comparison to higher shipments for innovation in the prior year and the impact of closures of certain specialty-multi retailer-operated shop-in-shop doors.

Makeup adjusted operating results decreased to a loss position, reflecting sales deleverage from the strategic increase in consumer-facing investments to drive future sales growth, including to support key activations, new product launches and distribution expansion.

Fragrance

Fragrance net sales increased 10%, primarily driven by double-digit growth from the Company’s Luxury Brands—with broad-based growth across brands as well as growth across all geographic regions—led by Le Labo, Tom Ford and Kilian Paris.

Net sales growth from Le Labo was primarily driven by its Classic Collection, including innovation such as the fiscal 2026 launches of Violette 30 and perfuming hand creams. The increase reflected both targeted expanded consumer reach and growth in existing distribution.

Net sales from Tom Ford increased, fueled by innovation—including Soleil Neige, Oud Voyager and Figue Érotique—which created a halo effect that benefited existing Private Blend and Signature product sales.

Kilian Paris net sales increased, primarily reflecting the success of existing products—such as the Angels’ Share and Love, don’t be shy product franchises—as well as the launch of Angels’ Share on the Rocks and targeted expanded consumer reach.

Fragrance adjusted operating income increased 27%, primarily reflecting an increase in gross profit, driven by 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 decreased 1%, primarily driven by the decline from Aveda, largely offset by growth from The Ordinary.

Aveda net sales declined, reflecting the brand’s strategies to improve long-term performance—including planned rebalancing of online promotional activity and the exit from underperforming doors, including some of its own freestanding stores. The decrease also reflects the brand’s continued challenges in the salon channel. Collectively, these declines more than offset the benefits from the brand’s fiscal 2025 fourth-quarter launch in Amazon’s US Premium Beauty store, as well as successful innovation such as Miraculous Oil.

Net sales growth from The Ordinary was primarily driven by distribution expansion and the success of Multi-Peptide Serum for Hair Density.

Hair Care adjusted operating results improved to income from a loss in the prior year, reflecting disciplined expense management and net benefits from the PRGP—which helped to reduce non-consumer-facing expenses and cost of sales.

Organic net sales increased 3%, with growth in every geographic region, led by high-single-digit net sales growth in Mainland China, driven by both innovation and existing products, particularly during key shopping moments and holiday, with increased consumer-facing investments supporting key activations to drive sales growth. Targeted expanded consumer reach also contributed to growth. These results drove strong double-digit growth across online distribution channels, combined.
Net sales in Asia/Pacific increased mid-single digits, primarily due to the Company’s Asia travel retail business, including the increase in net sales in Korea travel retail and Hong Kong SAR travel retail, benefiting from retailer shifts in strategies toward more profitable duty-free business models, which helped reduce discounting, as well as the increase in traveling consumers.

Net sales growth in Hainan travel retail, reflecting the improvement in retail sales driven by improved traffic and successful retail activations The net sales decline in the rest of mainland China travel retail, primarily driven by the transitory pressure from the change in duty-free retailers servicing Beijing and Shanghai airports, including the related online businesses.

Fiscal 2027 Outlook

The Estée Lauder Companies anticipates organic net sales growth of 3% to 5% in the fiscal 2027 outlook.