Estée Lauder Reports Strong Earnings, But Makeup Sales Remain Flat
The Estée Lauder Companies (NYSE:EL) reported fourth-quarter net sales of $3.63 billion in fiscal 2027, a 6.3% increase driven by strong performance from its luxury fragrance and skincare brands like Le Labo and Tom Ford. The company also benefited from a $38 million tariff refund and real growth in mainland China. These results led to an adjusted profit of 39 cents per share, exceeding expectations. Despite these gains, makeup sales remained flat while hair care declined by 1%. CEO Stéphane de La Faverie acknowledged the underperformance in those categories as a concern. The company also reported a $116 million net loss for the quarter—although it improved from a $546 million loss one year prior—and noted that its turnaround costs have exceeded initial projections. Estée Lauder’s stock rose 11% premarket following the report, but analysts remain cautious about whether this is a full company-wide recovery or just strength in already successful categories.
Tickers: $EL
Topics: beauty China market luxury brands turnaround strategy