The Estee Lauder Companies Inc announced strong financial results for the second quarter of fiscal year 2026 on Feb 5, driven by a 13 percent year-on-year increase in organic net sales in the Chinese mainland. This marks the company's second consecutive quarter of double-digit growth, significantly boosting the company's performance.

According to the earnings report, the group's total net sales increased by 6 percent to $4.2 billion, with organic net sales up 4 percent. Both gross and operating margins improved, while earnings per share soared 43 percent.

The Chinese mainland market has become a key growth driver, outperforming the broader high-end beauty sector in China. This success is attributed to product innovation, the effective execution of the Double 11 Shopping Festival and holiday marketing campaigns, and increased consumer investment.

Throughout the quarter and the 2025 calendar year, the group expanded its market share across all categories and channels in the high-end beauty market, with standout performances from brands like La Mer, TOM FORD, and Le Labo.

"In this pivotal year, Beauty Reimagined has invigorated our business as we execute the biggest operational, leadership, and cultural transformation in our history," Stéphane de La Faverie, president and CEO of the group, said.

"On its one-year anniversary, we raise our fiscal 2026 outlook confident in the strength of our turnaround, even as our second half reflects previously expected headwinds and now-greater consumer-facing investments, as we expect to restore organic sales growth and expand our operating margin for the first time in four years."