Estee Lauder shares surged nearly 8% in premarket trading on Wednesday after the New York-based cosmetics group raised its outlook for fiscal 2027, citing resilient demand for luxury fragrances and skincare products.
The company, which owns brands including Clinique and M.A.C, now expects adjusted earnings per share between $3.10 and $3.35 for the year ending June 30, 2027, exceeding market consensus. Estee Lauder also reported fourth-quarter revenue of $3.63 billion, ahead of the $3.54 billion forecast.
The company attributed the optimism to strong demand from affluent and younger consumers, particularly for trend-driven items, luxury fragrances, and skincare. Premium fragrance brands Le Labo and Tom Ford delivered a 10% revenue increase in the quarter, while Le Labo’s core 50-milliliter fragrances, priced at $250 each, benefited from expanded distribution and targeted marketing to new customer segments.
Estee Lauder’s ‘Beauty Reimagined’ strategy, led by CEO Stephane de La Faverie, appears to be gaining traction. The plan focuses on faster premium product launches, a streamlined supply chain, and increased investment in innovation and marketing. The company also noted $38 million in refunds that helped offset costs tied to the Middle East conflict and tariffs.
The positive outlook follows the collapse of merger talks with Puig, the owner of the Jean-Paul Gaultier brand, which were called off in May.
