Key Highlights

  • Net sales hit $3.715 billion in the fiscal first quarter, compared with $3.481 billion a year ago, and Organic Sales grew 6%.
  • Fragrance Revenue jumped 19% to $861 million, making it the fastest-expanding of the main categories.
  • Net Earnings totaled $233 million, while GAAP diluted EPS was $0.64 compared with $0.13.
  • Adjusted for restructuring and other charges, diluted EPS was $0.72 against $0.32, while Operating Margin reached 12.1%, up from 7.3%.
  • The fiscal 2027 diluted EPS outlook moved up to a $3.20 to $3.45 range, previously $3.10 to $3.35.

Fragrance Brands Lift Quarterly Sales 7% as Hair Care Slips

Estee Lauder (NYSE:EL) released fiscal 2027 first-quarter results on Nov 2, 2026, for the period ended Sep 30, 2026. Revenue came in at $3.715 billion, up 7% year over year against $3.481 billion, while organic sales advanced 6%. Three of the four product categories expanded, and each geographic region recorded growth.

Jo Malone London, Le Labo, TOM FORD and the Estee Lauder Brand drove fragrance up 19% to $861 million, or 20% at constant currency. Skin care revenue reached $1.651 billion, up 5%, helped by La Mer and The Ordinary. Makeup brought in $1.048 billion, a 2% increase. Hair care edged down 1% to $128 million, since Aveda deliveries were delayed by brand-specific logistics issues in the Supply chain.

Gross Margin Rises to 75.7% and Operating Income Reaches $408 Million

Management credited pricing moves, purchasing savings and production efficiencies for a 240 basis point gross margin rise, from 73.3% to 75.7%. Once restructuring and other charges are set aside, operating margin reached 12.1%, versus 7.3% previously. Reported operating income landed at $408 million, up from $169 million; the restructuring and other items totaled $40 million, versus $89 million a year earlier.

Consumer-facing spending climbed 8%, whereas non-consumer-facing outlays were cut 1%. On an adjusted footing, the tax rate declined to 31.9% against 40.5%. Operating cash use shrank to $166 million, compared with $340 million, and free Cash Flow ran a $235 million Deficit versus $436 million; this quarter typically consumes cash.

China Mainland Sales Rise 15% as Priority Emerging Markets Grow 15% Organically

Asia/Pacific revenue reached $952 million, a 9% rise. Within it, Mainland China grew 15% to $614 million, which equals 9% on an organic basis. Americas sales moved up 5% to $1.227 billion, and EUKEM rose 2% to $923 million; both posted 4% organic growth. Priority emerging markets advanced 15% organically, while online sales climbed at a high-single-digit rate.

New products delivered 29% of first-quarter revenue, above the full-year goal of 25%. The rest of Forest Essentials was acquired Oct 5, 2026, with no material fiscal 2027 effect expected.

Full-Year Targets Raised on Expected First-Half Momentum and Stable Geopolitics

Organic sales growth for fiscal 2027 is now expected at 4% to 5.5%, an upgrade from the prior 3% to 5% band, and reported growth should land between 5% and 6.5%. Management raised the operating margin range to 12.9% through 13.7%, compared with 12.7% through 13.5%. Diluted EPS now targets $3.20 to $3.45, while operating cash generation is seen at $1.4 billion to $1.5 billion, above the prior $1.3 billion to $1.4 billion.

The first half should outpace the second, and the outlook assumes no further geopolitical deterioration. Shareholders on the books as of Nov 30, 2026 will receive the $0.35 quarterly dividend, scheduled for payment on Dec 15, 2026. A Capital Markets event is set for Wednesday, Nov 4, 2026.