Estée Lauder Companies reported quarterly results that beat analyst expectations, showing progress in its turnaround plan. For the fiscal fourth quarter ending in June, the beauty company posted revenue of $3.63 billion, exceeding the average forecast of $3.5 billion. Adjusted earnings per share were $0.39, also above estimates. The company's shares rose nearly 8% in premarket trading after the announcement.
Turnaround Strategy Gains Momentum
These results end three straight years of declining revenue. During that time, the company lost about $100 billion in market value since early 2022. Chief Executive Officer Stéphane de La Faverie, who took charge in 2025, has focused on restructuring operations and improving profits. The company confirmed a net reduction of about 10,000 jobs as part of its cost-cutting measures. De La Faverie said, "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."
Strong Demand for Premium Products
Estée Lauder expects strong annual profit, driven by high demand for luxury fragrances, especially in China. The company forecasts adjusted earnings per share for fiscal 2027 will be between $3.10 and $3.35, above analysts' estimates of $3.18. Fourth-quarter sales were boosted by a 10% increase in net sales from its luxury fragrance brands, including Le Labo and Tom Ford. The company also noted a $38 million benefit from refunds during the quarter, which helped offset the impact of $102 million in extra tariffs recorded in cost of sales.
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Estée Lauder's strong quarterly performance is likely to positively affect the cosmetics sector, especially for luxury brands. The expected profit growth could increase investor confidence in the company and its peers, possibly raising stock prices. Investors will watch for more updates on the company's product launches and market strategies as the fiscal year continues.
Based on reporting by: livemint.com, businesstimes.com.sg