Estee Lauder sees sales growth through 2030 with turnaround plan, China push
It aims to accelerate growth and rebuild momentum, particularly in the world’s second largest economy
Published Wed, Nov 4, 2026 · 04:27 PM
[NEW YORK] Estee Lauder aims to deliver mid-single-digit organic net sales growth through fiscal 2030, with Stéphane de La Faverie confident that a turnaround strategy that has worked to revive brands like Mac Cosmetics can be applied across its portfolio.
The New York-based owner of brands including La Mer, Le Labo and Tom Ford Beauty expects double-digit adjusted earnings per share growth through the same period, de La Faverie said in an interview.
He targets an adjusted operating margin of 16.5 to 18.5 per cent by the end of the same period.
The targets mark a shift from restoring growth to accelerating it after several years of sluggish performance, particularly in China.
The company is seeking to rebuild momentum, including in the world’s second-largest economy, as it invests in product innovation.
“When you understand the local consumers and you put yourself into their culture and you give them their product, the experience, the claims that they want to hear that matters to them, then that’s how you build brand love,” he said.
The philosophy has become particularly important in China, a market that generated US$3.1 billion in net sales during Estee Lauder’s most recent fiscal period and accounted for roughly 20 per cent of total revenue.
China recovery and growth strategy
After years of weakness following the pandemic, mainland China has now delivered positive organic growth for four consecutive quarters.
China’s recovery has been gradual. Estee Lauder struggled with excess inventory in Chinese airport outlets during the pandemic-related shutdowns, and faced a slower-than-expected rebound travel demand.
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The company has also contended with intensifying competition from domestic beauty brands and the growth of gray-market sellers offering authentic products acquired at deep discounts during the pandemic and resold through unauthorised channels at lower prices.
The chief executive credited part of the turnaround to the company’s Shanghai innovation centre, which develops products and marketing strategies specifically for Chinese consumers.
Estee Lauder is now looking to replicate that approach across its portfolio, with a plan to apply the turnaround playbook used at Mac Cosmetics to weaker-performing brands such as Aveda.
Besides, it plans to focus on faster innovation and stronger positioning in distribution channels like TikTok Shop and Sephora.
Fiscal 2027 is off to a strong start, de La Faverie said during the company’s Capital Markets Experience event in Shanghai on Wednesday. He said the company is beyond restoring growth to building sustainable profit growth.
The broader turnaround began after de La Faverie assumed the leadership role in 2025 and launched the company’s “Beauty Reimagined” campaign, which emphasises on product innovation and operational efficiency and closer consumer engagement.
“We want to create the long-term desirability”, de La Faverie said in the interview earlier, “so consumers come back over and over again”.
The company raised its guidance and beat revenue estimates in its earnings report on Monday, with its fragrance arm driving demand. Its Chinese segment generated US$614 million in revenue, beating analyst expectations for about US$579 million.
The shares are up 0.6 per cent in 2026 so far through Tuesday’s close.
At Wednesday’s event, chief technology & transformation officer Brian Franz said the company is taking lessons from China’s leading digital ecosystems, including Tmall, Douyin, JD.com and WeChat. BLOOMBERG
