Estee Lauder, L’Oreal Post China Sales Recovery as Shoppers Return to High-End Cosmetics
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The Estee Lauder Companies Inc. and L’Oreal S.A. are seeing a sales recovery on the Chinese mainland. Photo: VCG
Global beauty giants The Estee Lauder Companies Inc. and L’Oreal S.A. are seeing a sales recovery on the Chinese mainland, signaling a rebound in the country’s high-end consumer market.
Estee Lauder on Thursday reported that sales on the Chinese mainland surged 9% in its latest quarter, the fastest among all its regions. The results from the U.S. cosmetics giant, along with a similar recovery reported by French rival L’Oreal, suggest that consumer confidence is stabilizing in the world’s second-largest economy, a significant development for global luxury and consumer brands.
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- Estee Lauder's Chinese mainland sales surged 9% to $532 million in its latest quarter, and total sales rose 4% year-on-year to $3.48 billion.
- L’Oreal reported mid-single-digit sales growth in China and positive North Asia growth for the first time in two years; announced a €4 billion acquisition of Creed.
- Both companies are seeing recovery in China after earlier declines, driven by targeted strategies and renewed consumer confidence.
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Who’s Who
- The Estee Lauder Companies Inc.
- The Estee Lauder Companies Inc. (雅诗兰黛公司) is a global beauty giant reporting a sales recovery in mainland China, with a 9% surge in its latest quarter. This marks the fastest growth among all its regions. For fiscal Q1 2026, Estee Lauder's total sales rose 4% to $3.48 billion, achieving a $169 million operating profit. The company attributes this to product innovation and targeted campaigns in China, now a standalone region.
- L'Oreal S.A.
- L'Oréal S.A., a French cosmetics giant, recorded mid-single-digit sales growth on the Chinese mainland in the third quarter. This recovery helped its North Asia business achieve positive like-for-like sales growth for the first time in two years, indicating a rebound in China's high-end consumer market.
- Kering
- Kering is a company that has partnered with L'Oreal. L'Oreal announced a long-term partnership with Kering, which involves acquiring the fragrance brand Creed and taking over the 50-year license for Kering's beauty and fragrance business for 4 billion euros. This deal is expected to close in the first half of 2026.
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What Happened When
- Earlier in 2025：
- Both L’Oreal and Estee Lauder saw their China sales fall, prompting Estee Lauder to announce significant global layoffs.
- September 2025：
- L’Oreal completed the integration of the hair care brand Color Wow and skincare brand Medik8.
- September 30, 2025：
- End of Estee Lauder's first quarter of fiscal 2026, during which Asia-Pacific sales grew 8% to $873 million and Chinese mainland sales reached $532 million.
- October 19, 2025：
- L’Oreal announced a long-term partnership with Kering to acquire the fragrance brand Creed and to take over the 50-year license for Kering's beauty and fragrance business for 4 billion euros; the deal is expected to close in the first half of 2026.
- October 22, 2025：
- L’Oreal reported mid-single-digit growth on the Chinese mainland during the third quarter of 2025, helping its North Asia business return to positive like-for-like sales growth for the first time in two years.
- October 31, 2025：
- Estee Lauder reported that sales on the Chinese mainland surged 9% in its latest quarter.
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