Beauty products company Estée Lauder (NYSE:EL) beat Wall Street's revenue expectations in Q3 CY2025, with sales up 3.6% year on year to $3.48 billion. Its non-GAAP profit of $0.32 per share was 81.9% above analysts' consensus estimates.
"We had a strong start to fiscal 2026 as we execute on our Beauty Reimagined strategy—returning to organic sales growth, gaining prestige beauty share in a few key strategic areas of focus, and improving profitability. Encouragingly, we are building momentum across the organization from the significant operational changes we have executed to-date to be faster and more agile," said Stéphane de La Faverie, President and CEO.
Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE:EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men's grooming.
A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $14.45 billion in revenue over the past 12 months, Estée Lauder is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only so many big store chains to sell into, making it harder to find incremental growth. To accelerate sales, Estée Lauder likely needs to optimize its pricing or lean into new products and international expansion.
As you can see below, Estée Lauder struggled to generate demand over the last three years. Its sales dropped by 5.8% annually, a poor baseline for our analysis.
Looking ahead, sell-side analysts expect revenue to grow 3.5% over the next 12 months. While this projection suggests its newer products will spur better top-line performance, it is still below the sector average.
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