Estée Lauder CEO on surging fragrance sales: 'Consumers are getting younger'

Tom Ford owner Estée Lauder ( EL ) has seen a boom in fragrance sales.

Fragrance net sales increased 20% in the company's fiscal first quarter, Estée Lauder reported on Monday. It was one of the fastest-growing divisions for the company in the quarter.

Gains were fueled by double-digit growth in high-end brands Le Labo, Tom Ford, Jo Malone London, and Kilian Paris. Estée Lauder also notched growth.

"Tom Ford is getting younger and younger as a brand," Estee Lauder CEO Stéphane de La Faverie told Yahoo Finance on a media call. "What is interesting with the consumer trend, I would say, is not specific to Tom Ford but … like broad-based on fragrance, is consumers are getting younger around the world."

He added, "But in the case of fragrance, you're seeing a group of young consumers, boys and girls, that are really, you know, buying fragrances with different habits. Like, if I look at me, for instance, I grew up with a signature fragrance, one that was defining who I was. This young generation is really tailoring their fragrance portfolio based on occasion. Can be to go to school, for sports, to go on a date, or to go with their parents and things like that."

The performance helped to drive a better-than-expected quarter and outlook.

Organic sales are poised to grow by 4% to 5.5% in the current fiscal year. Estée Lauder previously estimated 3% to 5%.

The company lifted its full-year earnings outlook by 10 cents.

Shares rose more than 1% in premarket trading.

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