Estée Lauder returns to growth as Tom Ford and Jo Malone hit $1bn

The Estée Lauder Companies reported a return to revenue growth in fiscal year 2026, with sales rising 5% to $15 billion, according to Glossy and CPP-Luxury. The group guided to a further 3 to 5% revenue growth in fiscal 2027 and gave an adjusted earnings forecast that beat Wall Street estimates. The company attributed the improvement to its Beauty Reimagined turnaround plan, launched in 2025 after a prolonged period of declining sales driven by weak China demand and a slower travel retail recovery.

Within that growth, Tom Ford Beauty and Jo Malone London have become billion-dollar brands, the company said, joining a small group of labels within the Estée Lauder portfolio that includes Estée Lauder and La Mer at that scale. The milestone matters because it shows the group's fragrance and niche beauty bets are maturing into meaningful revenue lines rather than remaining boutique additions, at a moment when the wider prestige beauty market has cooled from its pandemic-era boom.

The turnaround has been built on cost discipline, portfolio pruning and a renewed push into higher-growth categories and channels, rather than reliance on the Chinese duty-free and mainland recovery that once powered the group's growth. Estée Lauder's guidance beating Wall Street expectations suggests investors had priced in a slower recovery than management now expects. What to watch next is whether the momentum in Tom Ford and Jo Malone can be replicated across the group's larger, more troubled skincare brands, and whether the improved outlook survives a full year of trading rather than a single upbeat quarter.

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