Key Takeaways:Luxury skincare and fragrance drive Estée Lauder’s organic growth rebound.Margin expansion signals early success from the Profit Recovery and Growth Plan.US softness persists as Asia and travel retail outperform expectations.The Estée Lauder Companies (ELC) set a solid tone for fiscal year 2026 (FY26), reporting net sales of $3.48 billion in the first quarter (Q1) ending September 30. This figure grew 4% year over year (YoY), as organic net sales increased 3%, beating analyst expectations. On the earnings call, Stéphane de La Faverie, President and CEO of ELC, stated that the growth was a “significant sequential acceleration” from the 13% decline in the fourth quarter of FY25. The company reiterated its FY26 full-year outlook, signaling confidence that its Beauty Reimagined strategy is taking root, supported by launches on TikTok Shop, a newly announced partnership with Shopify, and the entry of top brand MAC Cosmetics into Sephora.Growth Engines and Brand InsightsFragrance was the company's strongest growth category, with a 13% organic rise, benefiting from high-single to strong double-digit expansion across luxury fragrance brands including Le Labo, Tom Ford, and Jo Malone London.Skincare rose 3% organically to $1.575 billion in net sales, bolstered by luxury brand dominance. La Mer and Estée Lauder led the way, supported by innovation in Revitalizing Supreme+, Re-Nutriv, and Advanced Night Repair. The company cited this strength as a driver of growth in Asia, with a low prior-year base.The makeup category remains under pressure, with net sales dropping 2% organically to $1.