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
Estee Lauder aims to achieve mid-single-digit organic net sales growth over the next decade, with Stéphane de La Faverie expressing confidence in a turnaround strategy that has successfully revived brands like Mac Cosmetics. The New York-based company, which owns brands such as La Mer, Le Labo and Tom Ford Beauty, expects double-digit adjusted earnings per share growth by the end of fiscal 2030.
This shift from restoring growth to accelerating it comes after years of sluggish performance, particularly in China. The company is investing in product innovation and building strong brand loyalty by understanding local consumers and tailoring their experience. China, generating US$3.1 billion in net sales and accounting for around 20% of total revenue, has become a crucial market for Estee Lauder.
The brand recovery has been gradual, with the company facing challenges like excess inventory in Chinese airport outlets and slower-than-expected rebound travel demand due to the pandemic. Estee Lauder believes its Shanghai innovation center, which creates products and marketing strategies specifically for Chinese consumers, has played a significant role in the turnaround.
The company is now applying this approach across its portfolio, focusing on faster innovation and stronger distribution channels, such as TikTok Shop and Sephora. Fiscal 2027 has started on a positive note, with Estee Lauder beyond restoring growth to building sustainable profit growth.
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