Things are starting to look clearer for Estée Lauder Companies (ELC). On Friday, the company announced that organic net sales rose 2% to $3.61 billion in the third quarter of fiscal 2026, which ended on March 31, 2026.

“Our third-quarter results build on a strong performance so far this year, thanks to Beauty Reimagined [ELC’s transformation plan],” said Stéphane de La Faverie, ELC’s CEO and president, during the company’s earnings call. “In the first nine months of fiscal 2026, organic fragrance sales grew by double digits, and three out of four regions saw growth — led by high-single-digit growth in Mainland China, where we outperformed the prestige beauty market and gained market share.”

ELC is moving forward with its Beauty Reimagined plan, which launched in February 2025. The plan is already paying off, leading the company to raise its full-year outlook by about 300 basis points. De La Faverie added that the coming year is “pivotal.” After a period of decline, the company aims to bring back organic sales growth and expand its adjusted operating margin for the first time in four years, thanks to signs of recovery.

Fragrance saw the biggest sales growth in the third quarter, rising 10% to $628 million across all regions. This growth was led by brands like Le Labo, Kilian Paris, Balmain Beauty, and Tom Ford. ELC’s other categories — skincare, haircare, and makeup — stayed flat.

By region, ELC reported a 6% increase in retail sales in Mainland China, helped by the timing of local government subsidies. The EMEA region (which includes Europe, the UK, Ireland, and emerging markets) also saw a 3% rise. Meanwhile, Asia-Pacific sales dropped 1% in Q3, and the Americas remained flat.

Looking ahead to fiscal 2027, the company says it’s confident it can keep improving. “Our early outlook is to speed up organic sales growth and bring the adjusted operating margin close to 13%, even with an uncertain geopolitical and economic environment,” said de La Faverie.

As for a possible merger between ELC and Puig, the company didn’t comment on the deal. Earlier this week, the Spanish conglomerate said that “no final decision has been made. Unless and until an agreement is reached, there can be no assurances regarding the transaction or the terms.”

Frequently Asked Questions
Here is a list of FAQs about Estée Lauder Companies 2 sales increase in the third quarter written in a natural conversational tone

BeginnerLevel Questions

1 So did Estée Lauder make more money or less money in the third quarter
They made a little more Their sales went up by 2 compared to the same time last year

2 A 2 increase sounds small Is that actually good news
It depends on how you look at it In the luxury beauty world 2 is considered modest Its not a huge boom but its positive growth especially since many companies are dealing with slower spending right now

3 Which of their brands did well Did people buy more makeup or skin care
Sales were mixed The company said skin care was a bit soft but makeup and fragrance did better Brands like Clinique MAC and Le Labo helped drive that growth

4 Is this increase happening everywhere in the world
No The growth was mostly driven by the Americas and some parts of Europe Sales in Asia particularly in China and travel retail were weak

IntermediateLevel Questions

5 If sales only went up 2 why did the stock price sometimes drop on the news
Because investors look at profit too Even though sales were up 2 the company said their profit margins were under pressure due to higher costs and spending on marketing Investors worry when growth is slow and profits shrink

6 What exactly is organic sales growth and is that different from the 2 number
Yes The 2 reported number includes everything like currency exchange rates Organic growth strips out the impact of currency changes and business acquisitions or sales Estée Lauder reported organic sales were flat for the quarter So the 2 was actually helped by favorable exchange rates

7 The company mentioned travel retail was down What does that mean for shoppers
Travel retail is the business of selling perfume and makeup in airports and dutyfree shops If that part is down it means fewer international travelers are buying This often leads to more discounts or promotions online and in regular stores to clear out extra inventory