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Estee Lauder Targets 25% of Sales From Innovation in Fiscal 2026
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Key Takeaways
Innovation is expected to contribute more than 25% of total sales in FY26.
16% of the company's innovation pipeline is set to launch within FY26.
New products span skin care, makeup, fragrance and hair care, boosting category reach.
Estee Lauder Companies ((EL - Free Report) ) is setting a clear benchmark for creative renewal in fiscal 2026, aiming for more than 25% of total sales to come from innovation. The company described this as a key priority under its “Beauty Reimagined” strategy, reflecting a stronger focus on product-led growth and renewed emphasis on bringing impactful new launches to market.
Estee Lauder expects to triple the share of innovation launched within a year, from 10% to 30%, with 16% of that innovation set to debut during fiscal 2026. This step change is designed to strengthen consumer engagement, broaden category reach and bring greater balance between newness and core franchise strength.
The company’s pipeline spans across its largest categories, skin care, makeup, fragrance and hair care, covering both prestige and entry-tier offerings. New products already in the market highlight this approach, including The Ordinary’s Sulfur 10% Powder-to-Cream Concentrate, Estee Lauder’s Advanced Night Repair Eye Cream, and Re-Nutriv’s longevity-focused Watery Lotion.
In makeup, the company is building on its momentum in lip products with M·A·C’s Lipglazer Glossy Liner and Bobbi Brown’s Cashmere Luxe Matte Lipstick. Meanwhile, Tom Ford Beauty has extended its foundation line with the Architecture Radiant Hydrating Foundation. In fragrance, Tom Ford Beauty and Jo Malone London expanded portfolios with premium additions that build on their global appeal.
Estee Lauder indicated that its innovation program is gross margin accretive, linking creativity with profitability and supporting the broader growth objectives. The focus on deriving a meaningful portion of sales from new launches highlights the company’s intent to strengthen its product development cycle and ensure innovation remains a consistent contributor to future performance.
Helen of Troy Limited ((HELE - Free Report) ) is pursuing a growth strategy centered on innovation, with a focus on revitalizing its brand portfolio and driving consistent growth. By prioritizing world-class innovation and brand relevance, Helen of Troy seeks to unlock the full potential of the diverse portfolio, positioning its products as a key driver of long-term value creation. Helen of Troy emphasizes that “best brand innovations always win,” directing resources toward the most impactful ideas and aiming to deliver best-in-class consumer devices.
Coty Inc. ((COTY - Free Report) ) is building on a strong foundation of innovation to drive multiyear growth, targeting leadership in fragrance and scenting. The company is accelerating a return to blockbuster launches, with major fragrance and product innovations in the pipeline for fiscal 2026 and beyond, including Marc Jacobs makeup and Swarovski beauty. This focus leverages Coty's best-in-class R&D and manufacturing capabilities to deliver growth. With an unwavering commitment to innovative products and its unique portfolio, Coty aims to outperform the beauty market.
e.l.f. Beauty, Inc.’s ((ELF - Free Report) ) extraordinary growth is powered by its powerhouse innovation engine and unwavering commitment to exceptional value, which continues to fuel significant market share gains. By creating a successful, consumer-centric model that drives brand excitement and relevance, e.l.f. Beauty has a demonstrated ability to rapidly develop new products. With ample opportunity across color cosmetics, skin care and international markets, e.l.f. Beauty is well-positioned to continue expanding its overall business.
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Estee Lauder Targets 25% of Sales From Innovation in Fiscal 2026
Key Takeaways
Estee Lauder Companies ((EL - Free Report) ) is setting a clear benchmark for creative renewal in fiscal 2026, aiming for more than 25% of total sales to come from innovation. The company described this as a key priority under its “Beauty Reimagined” strategy, reflecting a stronger focus on product-led growth and renewed emphasis on bringing impactful new launches to market.
Estee Lauder expects to triple the share of innovation launched within a year, from 10% to 30%, with 16% of that innovation set to debut during fiscal 2026. This step change is designed to strengthen consumer engagement, broaden category reach and bring greater balance between newness and core franchise strength.
The company’s pipeline spans across its largest categories, skin care, makeup, fragrance and hair care, covering both prestige and entry-tier offerings. New products already in the market highlight this approach, including The Ordinary’s Sulfur 10% Powder-to-Cream Concentrate, Estee Lauder’s Advanced Night Repair Eye Cream, and Re-Nutriv’s longevity-focused Watery Lotion.
In makeup, the company is building on its momentum in lip products with M·A·C’s Lipglazer Glossy Liner and Bobbi Brown’s Cashmere Luxe Matte Lipstick. Meanwhile, Tom Ford Beauty has extended its foundation line with the Architecture Radiant Hydrating Foundation. In fragrance, Tom Ford Beauty and Jo Malone London expanded portfolios with premium additions that build on their global appeal.
Estee Lauder indicated that its innovation program is gross margin accretive, linking creativity with profitability and supporting the broader growth objectives. The focus on deriving a meaningful portion of sales from new launches highlights the company’s intent to strengthen its product development cycle and ensure innovation remains a consistent contributor to future performance.
Estee Lauder’s Peers Driving Innovation-Led Growth
Helen of Troy Limited ((HELE - Free Report) ) is pursuing a growth strategy centered on innovation, with a focus on revitalizing its brand portfolio and driving consistent growth. By prioritizing world-class innovation and brand relevance, Helen of Troy seeks to unlock the full potential of the diverse portfolio, positioning its products as a key driver of long-term value creation. Helen of Troy emphasizes that “best brand innovations always win,” directing resources toward the most impactful ideas and aiming to deliver best-in-class consumer devices.
Coty Inc. ((COTY - Free Report) ) is building on a strong foundation of innovation to drive multiyear growth, targeting leadership in fragrance and scenting. The company is accelerating a return to blockbuster launches, with major fragrance and product innovations in the pipeline for fiscal 2026 and beyond, including Marc Jacobs makeup and Swarovski beauty. This focus leverages Coty's best-in-class R&D and manufacturing capabilities to deliver growth. With an unwavering commitment to innovative products and its unique portfolio, Coty aims to outperform the beauty market.
e.l.f. Beauty, Inc.’s ((ELF - Free Report) ) extraordinary growth is powered by its powerhouse innovation engine and unwavering commitment to exceptional value, which continues to fuel significant market share gains. By creating a successful, consumer-centric model that drives brand excitement and relevance, e.l.f. Beauty has a demonstrated ability to rapidly develop new products. With ample opportunity across color cosmetics, skin care and international markets, e.l.f. Beauty is well-positioned to continue expanding its overall business.