Estée Lauder Companies says it is entering FY27 with renewed confidence after returning to growth across its portfolio.

For FY26, which ended June 30, net sales increased 5 per cent to $15 billion. Operating income (loss) was $780 million versus $785 million last year.

President and CEO Stéphane de La Faverie said the results exceeded expectations, with growth accelerating in the fourth quarter.

“We reignited growth with organic sales rising 3 per cent, driven by the breadth of growth across brands, and achieved significant operating margin expansion,” he said.

“We ended the year on a high note, as organic sales growth accelerated to 5 per cent for our fourth consecutive quarter of growth and stronger profitability.”

Category-wise, fragrance was up 12 per cent to $2.78 billion, skincare up 5 per cent to $6.34 billion, makeup 2 per cent to $4.28 billion, while hair care’s revenue remained unchanged at $565 million.

Regionally, sales in the Americas increased 1 per cent to $4.46 billion. Europe, the Middle East, and Africa grew 6 per cent to $3.79 billion, while Asia-Pacific revenue rose 4 per cent to $3.75 billion. Revenue in mainland China increased 12 per cent to $3.06 billion.

ELC also expanded its retail and digital footprint, growing its presence on Amazon to 13 brands across 11 markets and on TikTok Shop to 12 brands across nine.

Led by Le Labo and Jo Malone London, the group opened 33 freestanding fragrance stores globally.

In the US, additional Mac sections opened in select Sephora stores and Sephora at Kohl’s locations, as well as Sephora’s online platform, in March.

Looking ahead, de La Faverie said the company expects to build on its momentum in FY27.

“We are raising our outlook for an even stronger adjusted operating margin, as we double down on our strengths to diversify growth across product categories and geographies, including accelerating growth in North America.”

• Further reading: Estée Lauder and Puig end merger talks.