Estee Lauder Beats Q1 Estimates on Surging Fragrance Sales, Raises Full-Year Outlook

Estee Lauder Companies reported fiscal first-quarter results that beat Wall Street expectations on both the top and bottom lines, sending shares up roughly 2.8% in pre-market trading on November 2. Net sales rose 7% year over year to $3.72 billion, ahead of the $3.65 billion consensus estimate, while adjusted earnings per share more than doubled to $0.72 from the prior-year period, well above the $0.51 analyst estimate. Adjusted operating margin expanded 480 basis points to 12.1%, reflecting procurement savings, expense optimization, and manufacturing efficiencies under the company's Profit Recovery and Growth Plan.

Fragrance was the standout category, generating $861 million in sales, a 19% year-over-year increase and a significant beat versus the $764 million estimate, driven by luxury brands including Le Labo, TOM FORD, and Jo Malone, which collectively posted 20% organic growth. Skin care brought in $1.65 billion, up 5% but slightly below estimates, while makeup at $1.05 billion and hair care at $128 million also fell marginally short of forecasts. Geographically, Asia-Pacific led with $952 million, up 9%, including $614 million from mainland China with 9% organic growth. The Americas contributed $1.23 billion, up 5%, and Europe, the Middle East, and Africa added $923 million, up 2%. Restructuring and other charges fell $45 million compared with the same quarter a year ago.

Management raised its full fiscal 2027 guidance across all metrics. The company now expects adjusted EPS of $3.20 to $3.45, up from the prior range of $3.10 to $3.35, and GAAP EPS of $2.85 to $3.18, up from $2.52 to $2.85. Full-year net sales growth guidance was lifted to a range of 5% to 6.5%, compared with the previous 3% to 5%, with organic sales growth now targeted at 4% to 5.5%.