Estee Lauder has reported early progress in its turnaround during the second quarter, as sales growth picked up and margins began to improve. 

The beauty giant reported revenue of $4.23 billion for the quarter, with organic sales rising 4 per cent year-on-year, up from a 3 per cent increase in the first quarter. 

CEO Stephane de La Faverie points to the ‘Beauty Reimagined‘ Profit Recovery and Growth Plan, which helped lift adjusted operating margin by 290 basis points to 14.4 per cent, partially offsetting higher tariff-related costs. 

“We delivered excellent second quarter results to solidify a strong first half of fiscal 2026,” said de La Faverie.

“In this pivotal year, our growth plan has invigorated our business as we execute the biggest operational, leadership, and cultural transformation in our history.”

The company cited progress in cost reductions, workforce actions, and operational efficiencies, while noting that the most significant inventory and travel retail volatility is now largely behind its success this quarter.

Skincare remained the largest category, with sales of $2.05 billion, up 7 per cent year-on-year. Fragrance followed with $812 million in sales, up 9 per cent, while makeup generated $1.16 billion, up 1 per cent. Hair care sales rose 6 per cent to $168 million.

By region, the Americas contributed $1.22 billion in revenue, Europe, the Middle East, and Africa delivered $1.18 billion, Asia-Pacific $900 million, and Mainland China $928 million.

“Even as our second half reflects previously expected headwinds and increased consumer-facing investments, we expect to restore organic sales growth and expand our operating margin for the first time in four years,” de La Faverie added.