Estée Lauder reports better-than-expected sales and China rebound

The American cosmetics group Estée Lauder beat Wall Street expectations for first-quarter sales on Thursday, signaling early success in CEO Stéphane de La Faverie’s turnaround technique. The firm additionally reported a rebound in its key Chinese market, sending its shares up practically 6% in premarket buying and selling.

From July to September, income rose 3.6% 12 months over 12 months to $3.48 billion, above analysts’ forecasts of $3.38 billion, in response to knowledge compiled by FactSet. Net revenue got here in at $47 million, in contrast with the $52 million anticipated. Adjusted earnings per share stood at 13 cents, barely under the 15 cents analysts had anticipated.

The proprietor of Clinique, M.A.C., La Mer, Le Labo and Tom Ford mentioned sales in China rose 8.5% in contrast with the identical quarter final 12 months, helped by sturdy efficiency from its luxurious skincare and perfume labels. In an announcement, the corporate mentioned progress in mainland China was pushed by “innovation and our existing products,” in addition to “targeted customer expansion.”

Estée Lauder, which had warned in August of a possible $100 million tariff impression, has been optimizing its manufacturing footprint to convey manufacturing nearer to shoppers whereas reducing stock and promotional exercise to offset rising prices affecting the worldwide retail business.

The firm additionally reiterated the main points of a restructuring plan introduced in February, with an anticipated price of $1.2 billion to $1.6 billion earlier than taxes and the discount of 5,800 to 7,000 positions by the top of 2026.

“We started fiscal 2026 well, gaining market share in several key strategic areas and improving profitability,” de La Faverie mentioned within the assertion. “These results strengthen our confidence in our financial outlook for the 2026 fiscal year.”

For fiscal 2026, Estée Lauder continues to forecast a 2% to five% improve in internet revenue per share. The firm additionally warned that new commerce tariffs may cut back future earnings by practically $100 million, however mentioned it’s intently monitoring commerce coverage modifications and implementing measures to mitigate potential impacts.

VogueNetwork.com with AFP and Reuters