Estée Lauder Forecasts Stronger Profit on Luxury Beauty Demand

Estée Lauder expects fiscal 2027 adjusted earnings to beat Wall Street estimates, supported by resilient demand for premium fragrances and skincare, particularly in China. Shares rose nearly 8% in premarket trading after the cosmetics giant also reported better-than-expected quarterly sales.

Luxury brands including Le Labo and Tom Ford helped drive 10% growth in fourth-quarter net sales, as affluent and younger consumers continued spending on premium and trend-focused beauty products. The company has accelerated product launches, streamlined its supply chain and increased investments in innovation and marketing under CEO Stéphane de La Faverie’s “Beauty Reimagined” strategy.

Estée Lauder forecast adjusted earnings per share of $3.10 to $3.35 for fiscal 2027, with the midpoint above analysts’ estimate of $3.18. Fourth-quarter sales reached $3.63 billion, exceeding expectations of $3.54 billion. The company also received $38 million in refunds during the quarter, partly offsetting the $102 million full-year impact of additional tariffs.

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