Asia travel retail rebound powers Estée Lauder’s return to growth

The Estée Lauder Companies (ELC) returned to sales growth in the fiscal year ended 30 June 2026, with reported net sales reaching US$15 billion, up 5% year-on-year, and organic net sales increasing 3%. The beauty group also narrowed its losses significantly, posting net earnings per common share of $0.50 against a loss of US$3.15 in the prior fiscal year.

Management credited the company’s Profit Recovery and Growth Plan for the improved performance. The plan helped drive operating margin expansion and supported a return to profitability metrics, according to the company’s earnings release.

A key driver was improving momentum across Asia Pacific travel retail, led by gains in South Korea, Hong Kong and Hainan. The region’s recovery helped offset softer conditions elsewhere and contributed to the group’s top-line rebound.

In the fourth quarter, reported net sales climbed 6% and organic net sales rose 5%. The quarterly net loss narrowed to US$116 million from US$546 million a year earlier.

President and CEO Stéphane de La Faverie said the company delivered fiscal 2026 results ahead of initial expectations, with growth driven by the breadth of brands and significant operating margin expansion.