Estee Lauder's Skin Care Sales Rise 6%: Are More Gains Ahead?

The Estee Lauder Companies’ EL Skin Care remained a key bright spot in second-quarter fiscal 2026, supported by stronger retail trends in select markets. Performance in Mainland China and continued brand momentum helped steady the category amid an evolving demand environment.

The company delivered 6% organic net sales growth in its Skin Care segment in the fiscal second quarter, marking one of the strongest category performances in the quarter. The increase reflects improved retail trends and momentum across key markets and brands, reinforcing the role of the Skin Care category as a core growth engine.

EL highlighted solid performance in Mainland China, where retail sales trends strengthened sequentially. Growth was also supported by innovation and hero franchise strength. Brands such as Estée Lauder and La Mer contributed to the segment’s advance, with demand supported by new product launches and continued consumer engagement in prestige skin care routines.

The Estee Lauder Companies Inc. Price, Consensus and EPS Surprise

The Estee Lauder Companies Inc. price-consensus-eps-surprise-chart | The Estee Lauder Companies Inc. Quote

Improved inventory discipline and better sell-in/sell-through alignment across key markets supported overall performance. Compared with prior periods, the business saw healthier retail dynamics, particularly in Asia/Pacific. While travel retail remains in transition, Skin Care demonstrated resilience across both domestic and online channels.

The segment’s growth is notable given a still-cautious consumer environment in certain regions. Prestige beauty demand has been uneven, and the company continues to navigate macroeconomic and geopolitical pressures. Even so, Skin Care’s 6% organic increase signals stabilization and renewed traction after periods of volatility tied to travel retail disruptions and inventory resets.

Looking ahead, sustained momentum will likely depend on continued innovation, disciplined inventory execution and retail recovery in key markets such as China. Skin Care remains central to EL’s strategic focus, and its performance in the fiscal second quarter suggests improving fundamentals within the category. Whether this pace accelerates further will depend on retail conditions and the company’s ability to maintain brand heat and market share in a competitive global landscape.

Shares of this Zacks Rank #3 (Hold) company have rallied 18.9% in the past three months compared with the industry’s growth of 16.1%.

Stocks Worth Considering

Ralph Lauren Corporation RL, which designs, markets and distributes lifestyle products, currently sports a Zacks Rank #1 (Strong Buy). RL delivered a trailing four-quarter earnings surprise of 9.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year sales and earnings suggests growth of 12.2% and 30.9%, respectively, from the year-ago figures.

Columbia Sportswear Company COLM, which designs, develops, markets and distributes outdoor, active and lifestyle products, sports a Zacks Rank #1 at present. COLM delivered a trailing four-quarter earnings surprise of 25.2%, on average.

The Zacks Consensus Estimate for Columbia Sportswear’s current fiscal-year sales calls for growth of nearly 2%, while estimates for earnings suggest a 6.2% decline from the year-ago figure.

European Wax Center EWCZ, a personal care franchise brand, currently carries a Zacks Rank of 2 (Buy). EWCZ delivered a trailing four-quarter earnings surprise of 170.2%, on average.

The consensus estimate for European Wax Center’s fiscal 2026 sales implies a rise of 1.3%, while the same for earnings calls for a 0.8% dip from the year-ago figures.

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