Estée Lauder Closes Fiscal Year with 8.2% Sales Drop, Enters Loss Territory

Estée Lauder is in the red. At the end of the fiscal year, the results of U.S. cosmetics giant Estée Lauder continue to be severely affected by the slowdown in the U.S. market, its main market, and weak consumption in China.

The company postedsales 8.2% lower than last year, down to $14.326 billion, and a loss of $1.133 billion, according to the company’s earnings statement published on Wednesday.

By product type, skin care is once again the brand’s best-selling category, with sales amounting to $6.962 billion, more than a billion less, however, than in 2024. This represents a drop of 12%.

Skin care is once again the best-selling category of Estée Lauder, but down 12%

Behind skin care, makeup is in second place with sales of $4,305 million, also lower than last year, something the company blames on the lower performance of its MAC makeup brand.

Fragrances scored the third best result, and remained stable compared to 2024 at $2,491 million. Hair care, however, lost share, posting sales of $565 million.

By region, the United States and Latin America are the leading market, with sales of up to $4,410 million. Eukem (covering Europe, Korea and the Middle East) followed, with $ 3,566 million in sales. In third place, Asia Pacific is worth $ 3,606 million, while mainland China has achieved sales of $ 2,741 million.

Estée Lauder chairman and CEO Stéphane de La Faverie lamented the “continued volatility of the external environment,“ but said fiscal 2026 begins with “signs of momentum and confidence.“ He acknowledged the three consecutive years of declining sales, and said that his goal for the next fiscal year is to “begin to rebuild operating profitability” in the coming years.