Estée Lauder Companies Inc. (NYSE:EL) jumped in premarket trading Thursday after posting stronger-than-expected first-quarter results and reaffirming its 2026 sales outlook.

The company reported first-quarter adjusted earnings per share of 32 cents, beating the analyst consensus estimate of 17 cents.

Quarterly sales of $3.481 billion (+4% year-over-year) outpaced the analyst consensus estimate of $3.378 billion.

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Organic net sales (non-GAAP) soared 3% year-over-year to $3.455 billion.

Segment Performance

The company posted a mixed performance across its key beauty categories, with gains in fragrance and skin care partially offset by softness in makeup and haircare.

Skin Care sales rose 3% year-over-year to $1.58 billion, reflecting steady consumer demand for premium skincare lines.

Makeup, however, slipped 2% to $1.03 billion, driven primarily by weaker performance at the Bobbi Brown brand.

Fragrance remained a standout performer, surging 13% to $721 million as consumers continued to favor prestige scents across major markets.

The category's momentum helped cushion declines in haircare, which fell 7% to $129 million.

Margins and Restructuring Efforts

Adjusted gross profit in the quarter under review increased by 4% year-over-year to $2.551 billion.

Adjusted gross margin rose 60 basis points to 73.3%, supported by the company's Profit Recovery and Growth ...