The American multinational cosmetics company The Estée Lauder Companies has closed its fiscal year with a net profit of 182 million dollars (156 million euros), leaving behind losses exceeding 1 billion dollars recorded the previous year and surpassing market forecasts in terms of revenue.
In total, the company has generated 15.049 billion dollars (12.967 billion euros), which represents a 5% increase compared to the previous year, and has obtained an operating result of 780 million dollars (672 million euros).
The positive evolution of Estée Lauder has been supported by a 12% rebound in sales in China, where it reached 3.058 billion dollars (2.634 billion euros). In America, the business figure increased by 1%, reaching 4.463 billion dollars (3.845 billion euros).
In the area that includes Europe, the United Kingdom, Africa, and the Middle East, the group recorded revenues of 3.794 billion dollars (3.270 billion euros), a 6% increase, while in Asia Pacific, revenue reached 3.746 billion dollars (3.227 billion euros), an increase of 4%.
By business lines, the skincare division generated 7.338 billion dollars (6.323 billion euros), a 5% increase, and the makeup area totaled 4.267 billion dollars (3.676 billion euros), with a 2% improvement. The fragrance unit raised its sales by 12%, reaching 2.779 billion dollars (2.394 billion euros), while hair care products remained at 565 million dollars (486 million euros), in line with the previous year.
In the fourth quarter, the company recorded net losses of 116 million dollars (100 million euros), although with an improvement compared to the same period of the previous year, and the revenues for those last three months of its fiscal year grew by 6%, reaching 3.627 billion dollars (3.125 billion euros).
After the publication of the annual accounts, Estée Lauder's shares rose by up to 7% in pre-market trading on Wall Street.
The company held discussions between March and May with the Catalan group Puig to explore a possible merger of their activities, although no agreement was ultimately reached.
"I am extremely proud of our team for having exceeded the initial expectations of the results for the fiscal year 2026. We reactivated growth with a 3% increase in organic sales, driven by the breadth of growth across all brands, and we achieved a significant expansion of the operating margin," stated Stéphane de La Faverie, president and CEO of the firm.
"For the fiscal year 2027, we reaffirm our confidence in accelerating the growth of organic sales. In addition, we raised our outlook for an even higher adjusted operating margin, by leveraging our strengths to further diversify growth across all product categories and geographic regions, including the acceleration of growth in North America," he added.