SynopsisEstee Lauder projects robust annual profits that are set to surpass Wall Street's expectations. The company's growth is heavily fueled by luxury fragrances, including popular lines such as Tom Ford and Le Labo.

Estee Lauder anticipates an ongoing demand surge from young, affluent consumers while strategically broadening its brand presence in both China and international markets, aiming to enhance its makeup and hair care categories alongside its fragrances. APEstee Lauder forecast annual profit above many Wall Street estimates on Wednesday, betting its CEO's turnaround strategy would deliver sustained demand for luxury fragrances and strong performance in major growth market China.

C owner, whose merger talks with Jean Paul Gaultier-owner Puig collapsed in May, rose about 18% in early trading after it also exceeded quarterly results expectations. Resilient spending by affluent and younger ‌customers has boosted demand for ⁠the cosmetics ⁠maker's luxury fragrances and skincare products, such as Le Labo and Balmain Beauty.

The company wants the same momentum for its makeup and hair care categories, for which net sales were respectively flat and declining. To sustain its gains, Estee is accelerating premium product launches.

It has streamlined the supply chain and increased investments in innovation and marketing under CEO Stephane de La Faverie's " Beauty Reimagined" strategy. The company is "doubling down" on expanding brands across distribution channels and into more markets, and increasing "consumer-facing investment," de La Faverie said during Wednesday's earnings call.

UPSCALE FRAGRANCE IS A ' STANDOUT CATEGORY' Its luxury fragrance brands Le Labo and Tom Ford drove 10% growth in net sales during the fourth quarter. Le Labo's classic collection, which sells 50 milliliter perfumes for $250, benefited from increased distribution channels ⁠and targeted shopper ‌expansion."

Prestige fragrance remains a standout category with strong appeal to younger consumers across genders, and Estee Lauder's portfolio of brands with more niche appeal is well positioned to capture demand," said Sky Canaves, analyst at eMarketer. S.

Sephora stores had helped the category. ," de La Faverie said during a media call.

" We'll continue to build on that and making sure that the brand is not only visible in the right channels, but is also bringing breakthrough innovation." FRAGRANCE PLAYBOOK TO BE APPLIED TO HAIR CAREHair care net sales declined 1%, primarily due to lower Aveda sales.