Estée Lauder raised its full-year profit outlook and expanded its global job-cut target to as many as 10,000 positions on Thursday, as quarterly sales came in above analyst expectations.

Third-quarter net sales rose 5% to $3.71 billion. Analyst expectations stood at $3.69 billion, according to Reuters. Adjusted earnings per share came in at 88 cents, against analyst estimates of 65 cents, also according to Reuters.

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As part of its Profit Recovery and Growth Plan, Estée Lauder now plans to cut between 9,000 and 10,000 jobs, up from its earlier target of 5,800 to 7,000. More than 70% of these cuts will affect point-of-sale demonstration roles at certain department and standalone stores, reflecting a shift toward faster-growing sales channels. According to U.S. News & World Report, the company had about 57,000 employees worldwide as of June 30, 2025.

The company expects the restructuring program to bring up to $1.2 billion in gross benefits. Approvals for specific projects should be done by the end of fiscal 2026, and most actions are set to finish in fiscal 2027.

Fragrance was the fastest-growing category this quarter, with organic net sales up 10%, thanks to strong results from luxury brands like Le Labo, Kilian Paris, BALMAIN Beauty, and TOM FORD. In mainland China, sales grew by a mid-single-digit percentage, and the company said it beat the prestige beauty market there for the third quarter in a row.

For the full fiscal year, Estée Lauder raised its adjusted earnings per share outlook to a range of $2.35 to $2.45, up from a prior range of $2.05 to $2.25. Organic net sales growth is now projected to land near 3%, placing the result at the upper boundary of the company's previously stated 1% to 3% target range.

Estée Lauder warned that the guidance rests on conditions remaining stable, with any worsening of the geopolitical environment, tariff pressures, or conflict-related disruptions in the Middle East past May 2026 posing potential risks to the forecast. It said tariff-related headwinds are still expected to affect fiscal 2026 profitability by about $160 million to $180 million, net of planned mitigation actions.

Looking ahead to fiscal 2027, Estée Lauder said it expects organic net sales growth of 3% to 5% and an adjusted operating margin approaching 13%.

CEO Stéphane de La Faverie said in a statement that fiscal 2026 is "promising to be the pivotal year we intended, one in which we restore organic sales growth and expand our adjusted operating margin for the first time in four years."

Estée Lauder stock rose about 11% in premarket trading.

Estée Lauder beat estimates and is slashing up to 10,000 jobs

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