Estee Lauder reported a strong fiscal Q1 with an organic sales growth rebound of 3%, driven by double-digit growth in fragrance and significant share gains in China and the US. Management reaffirmed full-year guidance for 0-3% growth and 9.4-9.9% operating margin, expressing confidence in the turnaround while navigating a volatile macro environment. Fiscal Q1 organic net sales grew 3%, a significant sequential acceleration from a 13% decline in Q4.
Estee Lauder reported a strong fiscal Q1 with an organic sales growth rebound of 3%, driven by double-digit growth in fragrance and significant share gains in China and the US. Management reaffirmed full-year guidance for 0-3% growth and 9.4-9.9% operating margin, expressing confidence in the turnaround while navigating a volatile macro environment. Fiscal Q1 organic net sales grew 3%, a significant sequential acceleration from a 13% decline in Q4.
Estee Lauder reported a strong fiscal Q1 with an organic sales growth rebound of 3%, driven by double-digit growth in fragrance and significant share gains in China and the US. Management reaffirmed full-year guidance for 0-3% growth and 9.4-9.9% operating margin, expressing…
Reported gross margin was 73.37%, reinforcing the quarter's better-than-guided profitability.
Mainland China retail sales grew double-digit, significantly outperforming the market, with share gains across categories.
Operating margin expanded 300bps to 7.3%, driven by PRGP benefits and a 3% reduction in non-consumer-facing expenses.
Return to unit growth this quarter.. Management expressed strong confidence in their strategic plan and first-quarter results, citing accelerating growth and margin improvement, while acknowledging ongoing macro volatility.
Management expressed strong confidence in their strategic plan and first-quarter results, citing accelerating growth and margin improvement, while acknowledging ongoing macro volatility.
“We return to unit growth this quarter, which is a great positive.”
“We see a lot more demand at the entry of prestige and we've seen a strong acceleration with the ordinary. We've seen a rebound also with Mac in the US.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Op margin | FY2026 | 9.4%–9.9% | 9.65% | GUIDED |
| Op margin | FY2026 | 36% | 36% | GUIDED |
| Revenue | FY2026 | 0%–3% | 1.5% | GUIDED |
Partnership to modernize DTC operations indicates Shopify is gaining a major beauty sector client, validating its platform's appeal in the premium retail segment.
“We are therefore thrilled to announce our new partnership with Shopify to modernize and scale our direct-to-consumer business in a phased approach, creating a best-in-class omnichannel consumer experience globally.”
… fifth action plan priority. Our new executive team is fully in place. Our four newly reorganized regions are fully operational, and throughout the organization, we are empowering faster decision-making. As you will recall, we committed in February to increasingly collaborate with partners in areas of business where they can support us to become the best consumer-centric prestige beauty company in the world. We are therefore thrilled to announce our new partnership with Shopify to modernize and scale our direct-to-consumer business in a phased approach, creating a best-in-class omnichannel consumer experience globally. Looking ahead. For the balance of the fiscal year, we continue executing on our action plan priorities, including investing in exciting holiday activation and expanding consumer coverage. As announced yesterday, this includes MAC entering U.S. Sephora, spanning select stores as well as online stores, and Sephora, of course, which allows us to better connect with younger consumers and accelerate market turnaround in the U.S. Before I close, I want to share a few accomplishments from our just-published Fiscal 2025 Social Impact and Sustainability Report. Since we …