Estée Lauder Companies

Estée Lauder Returns to Growth; Sales and Profit Rise

Estée Lauder completed its fiscal year 2026 returning to profitable growth: revenue rose 5% to $15.0 billion (organic +3%), with fourth-quarter revenue up 6% (organic +5%). Gross margin improved to 75.5%. Operating income recovered to $780 million after a prior-year operating loss; adjusted operating income increased 47% to $1.69 billion. Fragrance grew most strongly (organic +10%) and skincare rose 4%, with brands such as La Mer, The Ordinary, TOM FORD, Le Labo and KILIAN PARIS cited as growth drivers. The company’s “Profit Recovery and Growth Plan” is expected to deliver about $1.2 billion in annual gross benefits and includes a workforce reduction of roughly 10,000 positions while increasing investments in marketing, innovation and distribution. For fiscal 2027 the company forecasts organic growth of 3–5% and an adjusted operating margin of 12.7–13.5%.

Beauty Brands Become Entertainment Content Creators

Beauty brands are increasingly creating entertainment-style content and embedding products into entertainment to engage audiences, especially Gen Z. Examples include Innisfree’s comedic street interviews with Tommy Brennan, E.l.f. Cosmetics’ nearly 10-minute true-crime mockumentary starring Phoebe Dynevor, and Rare Beauty’s campaign tied to a TV character. Agencies and creator-marketing firms say platform algorithms reward serialized, watchable content, prompting brands to own entertainment production or integrate into TV and streaming storylines. L’Oréal Group and its brands have leaned into product placements in hit shows, though heavy-handed placement can risk viewer backlash.

WPP On Track as H1 2026 Revenue Falls 5.6%

WPP reported a 5.6% year-over-year decline in revenue less pass-through costs for the first half of 2026 to $6.39 billion, though results beat analysts' estimates and its stock rose over 26% after the release. Six months into its three-year Elevate28 turnaround plan, CEO Cindy Rose said the company is on track to deliver $676 million in annual cost savings by 2028, has restructured into four business units, and is pursuing disposals and efficiency savings. Headcount fell 8.4% year-over-year to 97,000. WPP highlighted new client wins and said it topped J.P. Morgan’s net new business rankings for H1 2026.