Fragrance sales fueled Estée Lauder’s first-quarter growth, prompting the beauty company to raise its fiscal 2027 outlook.

The beauty giant’s net sales for the three months ended September 30 increased 7 per cent to $3.7 billion, while organic net sales rose 6 per cent, with growth across all geographic regions.

“Growth is accelerating, profitability is strengthening significantly, and the impact of Beauty Reimagined is becoming evident across our business,” said Stéphane de La Faverie, president and CEO.

The company attributed the results to product innovation, marketing campaigns and efforts to expand its reach across brands and distribution channels.

Fragrance was the strongest-performing category, with net sales rising 20 per cent. Growth was led by luxury brands Le Labo, Tom Ford, Jo Malone London and Kilian Paris, as well as the Estée Lauder brand.

Skin care sales increased 4 per cent, supported by La Mer and The Ordinary.

Makeup sales rose 1 per cent, driven primarily by Mac, partly offset by declines at the Estée Lauder brand. Hair care sales were flat, as growth from The Ordinary offset weaker performance at Aveda.

Following the stronger-than-expected first quarter, Estée Lauder raised its fiscal 2027 outlook and now expects organic net sales growth of 4 per cent to 5.5 per cent.

“We have moved beyond restoring growth. We are building diverse drivers for sustained profitable growth,” de La Faverie said.

“The energy and determination of our teams, combined with the strength of our brands and the progress of our transformation, give me greater confidence than ever in the opportunities that lie ahead.”