Strong performance from Tom Ford, Le Labo, and Jo Malone drives better-than-expected quarterly results and prompts an upgraded full-year outlook.
Estée Lauder Companies (EL) reported a 20% increase in fragrance net sales during its fiscal first quarter, fueled by growing demand among younger consumers and strong performance across its luxury fragrance portfolio.
High-end brands including Tom Ford, Le Labo, Jo Malone London, and Kilian Paris delivered double-digit growth, positioning fragrance among the company’s fastest-growing business segments.
CEO Stéphane de La Faverie highlighted a significant shift in consumer behavior, noting that younger generations are increasingly purchasing multiple fragrances rather than relying on a single signature scent.
According to de La Faverie, consumers are building fragrance collections tailored to different occasions, including school, sports, social gatherings, and dates.
The growing popularity of luxury fragrances has contributed to Estée Lauder’s stronger-than-expected quarterly performance, reinforcing the company’s position in the premium beauty market.
Following the results, Estée Lauder raised its fiscal-year organic sales growth forecast to between 4% and 5.5%, compared with its previous projection of 3% to 5%.
The company also increased its full-year earnings outlook by 10 cents, reflecting improved business momentum.
Investors responded positively to the announcement, sending Estée Lauder shares more than 1% higher in premarket trading Monday.
