After successive quarters of slumping sales and the announcement of its “Beauty Reimagined” restoration plan, The Estée Lauder Companies reported a 4% rise in net sales for the first quarter of fiscal year 2026 to $3.48 billion. Much of that growth came from the conglomerate’s fragrance portfolio, which saw net sales rise 14% year over year.
The company attributed that growth in its perfume category, which includes brands like Le Labo, Frédéric Malle and Kilian Paris, to the opening of 14 new freestanding stores, as well as new launches like Tom Ford Black Orchid Reserve. According to CEO Stéphane de La Faverie, Le Labo grew “nearly triple digits.”
“Where we see the biggest moves, in terms of unit [sales], is also in the perfume category, and we’ve had a significant influx of innovations,” said de La Faverie. “[We’re] accelerating innovation at the right price point, and we’re seeing a lot more also in smaller sizing, driving the growth overall.”
Despite new campaigns from the cosmetics brand Mac, the conglomerate’s makeup sector reported a 1% drop in net sales, as well as a 7% drop in hair care. Skin-care, ELC’s largest category, rose 3%.
Mac, however, will enter a key retailer with its arrival at U.S. Sephora stores in 2026. The brand, which welcomed Nicola Formichetti as creative director in May, also joined TikTok Shop in July.
TikTok Shop is not the only e-commerce retailer The Estée Lauder Companies is expanding its partnership with. The company expanded Clinique and The Ordinary to Amazon Mexico. And De La Faverie announced an upcoming partnership with e-commerce platform Shopify.
“We committed in February to increasingly collaborate with partners in our areas of business, where they can support us to become the best consumer-centric prestige beauty company in the world,” said de La Faverie. “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.”
With Mac’s upcoming placement at Sephora U.S. stores, the company aims to invigorate sales in both makeup and in the Americas region, where ELC saw a 2% decline in net sales. In Mainland China, however, ELC reported a 9% growth in net sales. But de La Faverie said the company is looking to expand its reach across not just any one region, but the globe.
“There’s not a market where the team is not focused on looking at new channels but also going deeper in the existing channel,” he said.
