A year after declining sales led the Estée Lauder Companies to launch its “Beauty Reimagined” turnaround plan, the beauty conglomerate has returned to growth. The company posted a 6% increase in net sales for the second quarter of fiscal year 2026, to $4.2 billion. The company now projects that full-year organic net sales in 2026 will increase by 1-3%. The company projects growth across all regions, with the exception of the Americas, where it predicts sales will remain flat.
“When we introduced Beauty Reimagined, our ambition was bold: to execute the biggest operational leadership and cultural transformation in our history to become the best consumer-centric prestige beauty company,” said ELC CEO Stéphane de La Faverie. “Thanks to the passion, creativity and resilience of our team around the world, we have come far in one year.”
Fragrance remained one of the conglomerate’s best-performing categories. Net sales rose 6% compared to Q2 2024, driven by Tom Ford and Le Labo. The company opened nine net-new freestanding stores globally in Q2, including new outposts from Jo Malone London, and ushered in new launches from Tom Ford, such as Figue Érotique. Skin-care net sales rose 6%, driven by growth in La Mer and the Estée Lauder brand’s longevity skin-care products, while hair-care net sales grew 5%.
Makeup declined 1%, despite growth from MAC. The brand welcomed Nicola Formichetti as creative director in 2025 and has since brought on brand ambassadors Chappell Roan and Doja Cat, and announced a launch at U.S. Sephora stores in March. Sales for the Estée Lauder brand, meanwhile, declined in Q2. In January, ELC announced the sale of makeup brands Too Faced and Smashbox.
“We have a lot more work to do on makeup,” said de La Faverie. “A lot of things that we are doing in this moment in time, related to our strategy on Beauty Reimagined, are to expand distribution. We’ve entered TikTok Shop in the U.S. with Clinique and MAC, which has allowed actually MAC to just already be in market share gain in the lip category, which is so important for MAC in the U.S.”
The company reported double-digit sales growth in Mainland China, driven by activations like the 11.11 shopping festival and growth in travel retail. De La Faverie said the company will continue to emphasize eventing and VIP outreach in the region.
“The channel is evolving to be much more experiential, which I think is a good thing for the long term of our brands,” said de La Faverie.
In North America, de La Faverie said the company is prioritizing online retail platforms like Amazon and TikTok Shop, while decreasing its presence in department stores.
“We are working with our partners all the way from Macy’s to Bloomingdale’s to even Saks in this moment in time, to just make sure that we capture the consumer. We have a very strong position, often a leading position, in these department stores, and we need to just protect it,” said de La Faverie. “But at the same time, … we imagine that we are moving where the consumer is moving.”
